[ad_1]
Starting early to plan for retirement is key to peace of mind in your golden years. Take the guesswork out of the equation, as CPF lets you get started with your retirement planning. Here are some CPF numbers to know.
This is the amount you can expect to receive each month if you join CPF LIFE with $ 272,900 in your CPF Retirement Account (RA) at the age of 65. This may seem like a large sum of money, but with attractive CPF interest rates, you can achieve it by setting aside $ 181,000, the total sum of current retirement, at the age of 55. For higher payments, you can top up your RA.
There are three CPF LIFE plans: tiered, standard, and basic plan. Ask yourself if you prefer a monthly payment that increases each year to help you cope with rising prices, or a fixed budget, even if that means being able to buy less as things get more expensive as the years go by. Plan ahead and grow your CPF savings to meet your retirement goals.
* Based on the CPF LIFE Standard Plan calculated for a CPF member turning 55 in 2020.
You can start receiving monthly payments at any time after age 65.
However, if you do not have immediate needs, you may want to defer receiving your payments. For each year it differs, payments will increase by up to 7 percent. This will give you up to a 35 percent increase in monthly payments if you choose to start receiving them at 70.
You have until the age of 70 to start your payments, after which they will start automatically.
The government helps you increase your CPF savings by paying good interest.
Singaporeans who are 55 and older earn 6 percent of the first $ 30,000 of their total CPF savings and 5% of the next $ 30,000.
Increase your retirement savings by adding small, regular recharges to your Special Account before your 55th birthday and then to your Retirement Account.
Adding just $ 5 a day to your CPF savings will earn you more than $ 35,000 ** in 15 years with the power of compound interest.
The sooner you top up your CPF accounts, the more you benefit.
** Calculated using the 4 percent annual base interest on your Special or Retirement Account.
Brought to you by
[ad_2]
