MAN GIVES UP ON CPF RETIREMENT SUM BECAUSE IT IS IMPOSSIBLE FOR HIM
You know last time, when I first started working, people always say CPF very steady one—government help you save for retirement, no need to worry. I believed that lah. Every month see 20% of my pay go in, company also give 17%. Wah, solid sia. But now I older already, look at the numbers properly… really buay tahan. I earning $8,000 a month now, decent income by most standards. But life in Singapore not cheap.
First, HDB mortgage—every month $1,500 gone from CPF OA. Insurance also must pay, for baby and wife. Still need to support my mum, give her some allowance. Then baby diaper, milk powder, childcare—wah, all add up. I tell you ah, end of the day, CPF inside not growing much leh.
I log in CPF website, look at projection—by 55 maybe only hit Basic Retirement Sum, if lucky. Full Retirement Sum? No way. Enhanced? Dream only. Some more inflation every year make the sum go higher and higher. How to catch up?
People say invest with CPF SA lah. But I prefer to invest my own cash outside—stocks, REITs, dividend portfolio. At least I got control. If emergency, can withdraw. CPF? Locked until 55, and even then, cannot take all. Must go Retirement Account, then monthly payout. Bro, I plan to retire before 56 lor. That one too slow already.
You ask me now, I already give up on hitting those CPF target sums. Not practical for my situation. I use CPF for what it’s good at—buying flat, medisave for hospital bills. But retirement? I take into my own hands.
I set my goal already—build passive income from investments, maybe small business on the side. I don’t trust CPF to be my main source. What if government shift the goalpost again? Raise retirement age? Increase withdrawal age? All out of my control.
I not saying CPF no good lah. Got good intention. But for people like me, juggling family, late starter, not born rich—just doesn’t work out. I rather put my effort into something I can touch and manage.
So now, I tell my friends also: don’t rely too much on CPF. Have your own backup plan. CPF is the backup, not the main plan. Otherwise next time retire still must work part-time just to buy kopi. Really sian.