Nowadays in Singapore, everything use CPF. You want buy house? CPF. You want pay monthly instalment? CPF. You want retire? Also can CPF. But hor, today my colleague say something that really make me think. He ask, “Bro, if we use so much CPF for HDB, next time retire how? Got enough or not? Later old already, eat grass ah?”
Young Time Only Think About House, Not Old Age
Last time, I also blur like sotong. First house I buy, I happily use all my CPF OA to pay for downpayment. Monthly loan also whack from CPF — I never even feel the pain because not cash what. Every month just deduct from account quietly. Song, right?
But now, as I hit mid-30s, I go see my CPF statement. Wah piang eh — not much left sia. Like $40K only. My wife even worse. She left $12K in OA. And we still got 20 years of housing loan to go. One fine day, we realise: this kind of method really jialat when we hit 55 or 65.
My uncle, already 60, say he regret using so much CPF when he was younger. Now he wait for CPF LIFE payout like waiting for TOTO — not much money every month, cannot retire properly. Must still work part-time at FairPrice pushing trolleys. Sibei sad.
CPF Is Retirement Fund, Not Free ATM
A lot of us treat CPF like bonus cash. Got OA means can use. But we forget CPF is actually for retirement. Government never design it to be housing piggybank only. You empty your CPF OA and SA, then next time no payout, who suffer? You lor. Can’t depend on children also, everyone ownself struggle.
Then got people say, “Never mind lah, later can downgrade HDB, take cash.” Sounds shiok, but who say got people want to buy your old flat next time? And you think downgrade really got so much profit meh? Maybe got levy, got loan left, got renovation costs — everything add up, no guarantee you got enough to retire comfortably.
Plan Smart, Use CPF Wisely Before Regret
Now what I do is pay part of my HDB loan using cash, so CPF OA can slowly grow again. Not easy lah, but must tahan. Every year got 2.5% interest, don’t waste. Also, I top up my Special Account to build more for retirement. Small amounts only, but over time it adds up.
So my advice? Don’t whack CPF like free money. Use wisely. House can always upgrade slowly, but your retirement cannot restart. You want to enjoy kopi and kaya toast at 65, not stress about money and eat maggi mee every day, right?
Don’t wait until too late then realise CPF all gone. Think ahead, ah — later old liao eat grass, really not funny.