Wednesday, May 8, 2013

CPF Minimum Sum

Today the CPF board announce that the CPF Minimum sum increase  again due to the inflation and life expectancies.
What is CPF Minimum Sum?  CPF Minimum Sum means that the money you need to set aside when you reach 55 years old  to ensure that you have enough of money for retirement when you reach 65 years old.  YOU can read more about the CPF Minimum Sum here from CPF website. [Details]
But how much is the adjustment from year 2003 till now? I just got curious and started to get the information from CPF website and crunch a chart from the data collected and I get curious, what will be the amount of minimum set aside needed one day if I reach 55? The chart below showing the 10 years from 2003 until 2013. So I just make an assumption, if the yearly inflation rate around 6.5% and the adjustment from CPF board 6.5% each year. Well, seems like I need to set aside 591,497 and the problem is I definitely do not think my CPF able to have such a big sum of money by that time. So what will happen? Then I think my property will be pledge if I do have a property :(

what if cpf minimum sum not enought

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