as a young university graduate employee you may find yourself worried about retirement.
retirement is nothing to worry about. all Singapore citizens and PR have this amazing pension plan called the CPF life.
the trick to cpf hacking to meet “enhanced retirement sum” and “basic healthcare sum” is inaction.
yes simply do nothing to your MA and SA.
all you need to do is to earn a high income by age 30.
ie. get a minimum of 6K monthly pay and total bonus of 5mths additional wages. ie 102,000 of your income must attract CPF.
at this income, you will find yourself meeting basic healthcare sum easily. and the excess will be transferred to SA regularly. if you continue to attract 102,000 annual income, you will get enhanced retirement sum from just your SA alone, and from the automatic MA transfers to SA.
just use your OA liberally for housing, and enjoy your quality of life. because your (SA+MA) will be able to hit (ERS+BHS) at age 55 anyway. you will get an annuity of 5k per month at age 65.
TLDR: use the skills given by NUS to find a 6k/mth job with 5 months bonus per year & work for 30 years from age 25-55.
Here are what netizens think:
- Somewhat unpopular opinion here but I’m a huge fan of cpf. This is especially true when I went for a back surgery years ago. Long story short after deductions i only had to pay a lot less than the actual sum.
- As for cpf life if we really wanna calculate to the grave then we just need to make sure we hit the sum to be enrolled in the program and live long enough because we’re basically paid a sum of money even when our own cpf dries up.
- Welcome to reality show, you will realise, dreams and reality aren’t the same..Read your post 10 years down the road, then do a survey among your peers, which milestones and what difficulties you will face at age 30, 40 and 50s…
- Knn, mai gwgb lah. U talk like easy especially the 5 mths bonus