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Can you really retire with CPF, Singapore’s retirement plan

Speaking about retirement. In US, they have Social Security. In Singapore, we have CPF.

Most Americans have no faith in Social Security, with young adults today believing there won’t be any money left by the time they retire. The average Singaporeans trust the Government has planned for their retirement, and has it covered through the CPF scheme.

Now the good thing about Americans being skeptical about no retirement money coming from Social Security, is some of them are slowly socking away money into their own personal retirement plans like 401(k) and Roth IRA.

The bad thing about Singaporeans thinking CPF is sufficient, is that aside from the compulsory 20% CPF contributions each month, few are putting aside additional funds in their own retirement plans.

Recent CPF Trend reports that only about 33.8% of Singaporeans aged 55 met the minimum sum requirement of $106k.

According to CPF Life, with minimum sum in 2023, one can expect $570-$620/mth on a Life balanced Plan. Taking into account inflation, this sum gets even smaller. And this has to cover food, medical, electricity/phone bills, property tax, transport, etc etc.

In Summary,
– In 2008, about 66.2% of Singaporeans aged 55 do not have minimum sum
– Majority of Singaporeans would have pledged their property as half of minimum sum
– Minimum sum might not be sufficient to retire on
– Essentially, more than 2/3 of Singaporeans above 55 will not be able to retire
– Start planning for your own retirement. Do not rely solely on CPF

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2 Responses to “Can you really retire with CPF, Singapore’s retirement plan”

  1. early retirement planning Says:

    Singapore property prices are always going up and everyone here has a significant amount of their money in properties. In the long run, they would be “living” in a bigger pile of cash when they retire. Worst case, just sold off the property for retirement fund and rent a cheaper place.

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