Fully paid house, FRS CPF Life and 500k worth of dividend stocks/reits/etf/bonds paying 4% should be enough for retirement at age 65. Easily achievable by everyone.
I am a single retiree…I think if one has no savings just roof over head and cpf life payout…one needs to be a bit more creative. If I am in that position, I will rent out my entire flat and also collect cpf payout but live in jb. Come back to Singapore only for medical but will only choose class C ward if needed.
Rent out your HDB and you can live any where in SEA comfortably. Don't be surprize that Medical in other country private medical are good compare with Singapore, prices are not that expensive. JB is getting expensive. If you can drive, live further from Singapore. Previously I could even get rent free house in Kedah. Or look after house for other people, may get a small salary or free utilities. Myself have stay in Penang a number of years & JB 4.5 yrs. Now living in Vietnam. I fully retired 7yrs ago at age 42. Rented out my HDB & have small income in Vietnam just to pass time. My HDB still have loan & its covered by CPF SA yearly interest. I have move enough money from OA into SA before starting living overseas. Currently OA is standing at Zero. When time comes I believe I will still get some form of CPF retirements plans payout from the sum in SA.
You must be kidding. You ever seen the exchange rate for SGD to other SE Asian countries? Got go and try living frugally in one of those other SE Asian countries for a few weeks to a few months? Who told you must stay in SG forever and cannot travel and eat at restaurants? Got wife and kids then you truly stuck lah, but if you're single like me, cannot see the world also at least go and see SE Asia lor. Of course you must earn enough money and have the wisdom to grow your money so you can live off of it lah. CPF payout from 65 is to add on to your already available funds lah.
Our CPF saving can not cope with SG inflation. It actually eat away the value .... unless we are ok with life after retired is eat and sleep and wait to die.
It's how you use your money, not how much you earn. However, sometimes the more the merrier, especially when you have a family, or circumstances and unexpected things happen that requires lots of money to tide through. So it is always good to have some form of insurances to cover all possible angles of misfortune.
What I did with my HDB is when I bought my 1st one, it was a 4 rm. Then 10 years later, I sold it and bought a 2nd HDB bto and in between. Make some profits. Use it to pay off the 2nd home & invest the balance.
Happy Monday Kelvin! For my stage is to buy resale flat and have to cash up more for cpf in case their interest crashes me. Beside I think set aside efund, Lt fund endowment and investment, passive incomes dividend and mining. I don't spent a lot should be okay haha. Married different Liao I guess😅
just me as an individual, i never believe in CPF since i graduated. used the money to invest and even now, i withdrew every cent whenever there is a credit. Life changer, never had a chance to regret at all. it earned more than 30 times from there, imagine if i had my money in CPF forever? only to regret if i had not withdraw it.
Im a 29 year old guy who is self employed... I have zero CPF but only got $30K in savings. I want to invest some of my money but I dont know how to do it safely
Totally agree. The CPF has lost it purpose. Monies locked up = no money at all. Money is a tool liek a spade and if the spadel is locked up then one has to use hands which = worked to death.
6:55 part of these numbers for older age groups could also be due to withdrawal of CPF funds after the eligible age? Though I can't find stats on age group x amount withdrawal. It's worrisome to see this trend (based on median) of older age groups' CPF based on "salary levels of last time" not meeting today's minimum sum. Would the current generation's CPF in the future look like this too, because of numbers getting larger in future while we are earning cpf based on today's dollars......
Thanks for the clear explanation about retirement. I have actually went to CPF Life website to look at the schemes and payouts, but there are still some lingering questions that need clarification. Some questions not clearly stated. We join the scheme at 55 years old, so must we meet the BRS/FRS at 55 years old, is it possible to continue adding to RA to try and catch up to meet the FRS? So if we meet FRS at 55 years old, is the money locked up until 65 years old or are we able to withdraw some of it in case of emergency? I would definitely appreciate if you can make a video to explain the details of CPF Life, how it works and how we can try to meet at least FRS for our own safety net during retirement.
Hi sleep, I'll explain CPF retirement based on my knowledge. If you reach 55, you can withdraw CPF money depending if you have a house. If have, you can withdraw amount in RA-BRS. If don't have, you can withdraw RA-FRS. Side note, if you are planning to sell your house, the money will go into RA to fill the FRS requirement. If you choose not to withdraw any extra money in your CPF FRS/BRS, you will enjoy a higher payout when u are 65 yo. Hope this helps ;)
@@axercute Thanks for taking the time to respond. So assuming I don't have a house at 55. Scenario 1: If my RA exceeds FRS, the FRS portion is locked up and I cannot withdraw it. (Note that CPF Life website is not very clear about this. They did not mention whether the amount is locked). Scenario 2: If my RA does not meet FRS, but I am still working, so is it possible to keep adding into RA to top up FRS ? (This one also not very clear).
hi sleep, thanks for replying to my response. You have mention if you don't have a house situation when u are 55. I would say the chances of reaching FRS is very high because you will merch your OA with your SA to form your RA. You OA will have a lot especially the allocation of funds in CPF. There are only three situations you cannot meet your FRS: 1.You are self employed and did not declare income to avoid income tax 2.You are a foreigner that just converted to Singaporean/PR at age 40+ 3. You choose/cannot work due to mental/health condition which insurance comes in play. Alternatively, when you reach 55, you are able to withdraw any excess amount when you reach FRS (RA-FRS) Scenario 2: if you are really self conscious on not meeting your FRS now, you can choose to opt in for RSTU, which tops up your CPF SA or do a CPF OA-SA which I don't recommend if you don't have a house yet due to mortgage loans
inflation outstrip 2.6%.... so CPF still ? all or nothing approach of meme stock/ Crypto with DCA would be a better approach for the long run isnt it ?
Hi Kelvin, in your next video, can you address the concerns of RSTU Top ups to SA as well as the interest earned from these being Reserved and cannot be used for SA Shielding? If my aim is to do SA shielding, I need to make sure that my RSTU amount and the compounded interest accumulated until I'm 55 don't cross the $40k threshold. The only workaround is OA to SA transfer which allows those funds to be shielded. Or rather, If I want to hit FRS faster, I should do housing refund, then use that $ to transfer to SA to hit FRS faster. I can't imagine those people who reached FRS via RSTU only to find out that majority of the funds are Reserved and cannot be shielded.
I dont understand why one needs to meet minimum sum to withdraw their own retirement money. What if i have 90k inside, i cant withdraw at all because minimum is 98k. And this 98k will eventually become 120k or more due to inflation 90k is still a lot of money, its enough to retire Why not allow everyone to withdraw regardless of how much is inside? No wonder we have lots of elderly still working cleaning tables and pushing cardboards
You can always withdraw the first 5k, regardless of your balance meeting FRS or not. That being said, 90k ain’t enough for retirement. Unless you don’t plan to live more than 3-4 years.
You are talking about things in the future, and yet you doing that using today's statistics and terms. How will you know what the world, or Singapore for that matter is gonna be like by the time you turn 70? Imagining if PAP stays in power throughout this entire duration. - Is the BRS gonna stay at the same amount? - Is the retirement draw out age still gonna stay at 70? - What is 770 bucks gonna be at that point of time? Surely you dun expect prices to stay the same as it is today correct? With the rate that the PAP government are changing the CPF rules in a heartbeat, by constantly moving the goal post, anybody will be dead WRONG to assume that CPF provides you any sort of retirement assurance in the future.
Can. Sell your government house, full withdrawal CPF and live In Malaysia under endowment fund. Deposit all the money in bank for 2.5% bank interest. The interest will be enough to cover all your yearly expenses in RM$
For a factual, balanced view, you need to befriend more singaporeans aged 55 and above who have used their CPF for housing. Because too many liars and haters among those who kpkb, complain and blame govt alot. Remember only empty vessels make the most noise.
Those in their 40s might have a lot in cpf but might not have fully paid for their house. Also no job is permanent now, once u reach your 50s- higher chance of retrenchment
Hi Gerry, it's true that most people face job retrenchment in their 50s, and it's a hassle for house loans because of mortgage insurance + interest... So if you are at your 40s and have not paid fully on your housing, you have 2 options Option 1: invest yourself and try to beat mortgage interest of around 3% Option 2: Do a voluntary housing refund (VHR), basically topping up your OA account to enjoy a 2.5% interest while paying your loan
is it possible to change the allocation rate for cpf like to make it automatic? like i want to fully invest into SA/medisave instead of OA since i might be getting a hdb as a inherited house so i don't need OA
Hi Valuable, don't forget OA ables you to pay your kids education and able you to invest such as IFAST which can potentially beat SA. Before doing that, you need to know transferring from OA to SA is irreversible and you can only take out money when you're 65. On the other hand, you are able to transfer money from your CPF OA-SA if you really have no plans on using it. Hope this helps :)
@@axercute I rang up CPF a couple weeks ago and was advised that any amount exceeding the tier plan you choose at age 55 can be cashed out whether it's in OA or SA. It seems like my understanding differs from yours, would you be willing to share further information with me?
@@thyBelx hi, regarding about this is true, when you have turned 55, your OA and SA will merch together and become RA(retirement account), and you will be able to withdraw any amount above BRS/FRS depending if you have a house
The rich stay by spending like the poor and investing without stopping while the poor stay poor by spending like the yet not investing like the rich. INVEST NOW!
Yes, we need a cfp life video, how to choose the 3 types of plans
Ah sounds good, lemme try to plan the video
I don't even know the types of plan...omg
@@KelvinLearnsInvesting Yes please explain this in more detail, thank you.
@@KelvinLearnsInvesting hi from europe. tell me more about Cpf life.
thanks kelvin, i was from kl and you were from ipoh orang. good good
Fully paid house, FRS CPF Life and 500k worth of dividend stocks/reits/etf/bonds paying 4% should be enough for retirement at age 65. Easily achievable by everyone.
I am a single retiree…I think if one has no savings just roof over head and cpf life payout…one needs to be a bit more creative. If I am in that position, I will rent out my entire flat and also collect cpf payout but live in jb. Come back to Singapore only for medical but will only choose class C ward if needed.
Rent out your HDB and you can live any where in SEA comfortably. Don't be surprize that Medical in other country private medical are good compare with Singapore, prices are not that expensive.
JB is getting expensive. If you can drive, live further from Singapore. Previously I could even get rent free house in Kedah. Or look after house for other people, may get a small salary or free utilities.
Myself have stay in Penang a number of years & JB 4.5 yrs. Now living in Vietnam. I fully retired 7yrs ago at age 42. Rented out my HDB & have small income in Vietnam just to pass time. My HDB still have loan & its covered by CPF SA yearly interest. I have move enough money from OA into SA before starting living overseas. Currently OA is standing at Zero. When time comes I believe I will still get some form of CPF retirements plans payout from the sum in SA.
Kelvin u are very right. CPF is a "Stay in SG forever, no restaurant, no travelling" retirement plan.
Still trumps a "Stick onto that, no life, no health, no sanity" stressful job.
1k convert to ringgit can last longer in msia.
@@eugeneteo9664 Try the baht instead.
You must be kidding. You ever seen the exchange rate for SGD to other SE Asian countries? Got go and try living frugally in one of those other SE Asian countries for a few weeks to a few months? Who told you must stay in SG forever and cannot travel and eat at restaurants? Got wife and kids then you truly stuck lah, but if you're single like me, cannot see the world also at least go and see SE Asia lor. Of course you must earn enough money and have the wisdom to grow your money so you can live off of it lah. CPF payout from 65 is to add on to your already available funds lah.
Go jb can eat restaurant
Can you do a video about which pay out plan to choose?? It is very important!!!
Please give an in-depth analysis on CPF life. thank you!
Hey kelvin, pls do a video on CPF life and if it worth to top up the ERS to the max.
Our CPF saving can not cope with SG inflation. It actually eat away the value .... unless we are ok with life after retired is eat and sleep and wait to die.
For elderly there are a lot of rebates from govt. Maybe should interview real retirees about their expenses.
It's how you use your money, not how much you earn. However, sometimes the more the merrier, especially when you have a family, or circumstances and unexpected things happen that requires lots of money to tide through. So it is always good to have some form of insurances to cover all possible angles of misfortune.
What I did with my HDB is when I bought my 1st one, it was a 4 rm. Then 10 years later, I sold it and bought a 2nd HDB bto and in between. Make some profits. Use it to pay off the 2nd home & invest the balance.
This exclude sickness but survival only.
Happy Monday Kelvin!
For my stage is to buy resale flat and have to cash up more for cpf in case their interest crashes me. Beside I think set aside efund, Lt fund endowment and investment, passive incomes dividend and mining. I don't spent a lot should be okay haha. Married different Liao I guess😅
just me as an individual, i never believe in CPF since i graduated. used the money to invest and even now, i withdrew every cent whenever there is a credit. Life changer, never had a chance to regret at all. it earned more than 30 times from there, imagine if i had my money in CPF forever? only to regret if i had not withdraw it.
Mind to share what have you vested?
View cpf as your bond component in your overall investment strategy.
Im a 29 year old guy who is self employed...
I have zero CPF but only got $30K in savings.
I want to invest some of my money but I dont know how to do it safely
Totally agree. The CPF has lost it purpose. Monies locked up = no money at all. Money is a tool liek a spade and if the spadel is locked up then one has to use hands which = worked to death.
6:55 part of these numbers for older age groups could also be due to withdrawal of CPF funds after the eligible age? Though I can't find stats on age group x amount withdrawal.
It's worrisome to see this trend (based on median) of older age groups' CPF based on "salary levels of last time" not meeting today's minimum sum. Would the current generation's CPF in the future look like this too, because of numbers getting larger in future while we are earning cpf based on today's dollars......
Please explain on CPF Life
with the increase of interest rates by the three local banks, its hightime that the cpf board
do likewise... t
The basic saving accounts are still at 0.05% interest, while sgs yield are going down. Cpf interest rate wont increase :(
Majority of Singaporeans are on CPF loans for their HDBs. Which is 0.1% above the CPF interest rate. Go figure.
Does your projection account for MA allocation that overflowed to SA/OA after reaching BHS?
mY friend work 20 years still 1.8k
“If HWZ said that, it must be true” 🤣👍🏻
Thanks for the clear explanation about retirement. I have actually went to CPF Life website to look at the schemes and payouts, but there are still some lingering questions that need clarification.
Some questions not clearly stated.
We join the scheme at 55 years old, so must we meet the BRS/FRS at 55 years old, is it possible to continue adding to RA to try and catch up to meet the FRS?
So if we meet FRS at 55 years old, is the money locked up until 65 years old or are we able to withdraw some of it in case of emergency?
I would definitely appreciate if you can make a video to explain the details of CPF Life, how it works and how we can try to meet at least FRS for our own safety net during retirement.
Hi sleep, I'll explain CPF retirement based on my knowledge.
If you reach 55, you can withdraw CPF money depending if you have a house. If have, you can withdraw amount in RA-BRS.
If don't have, you can withdraw RA-FRS. Side note, if you are planning to sell your house, the money will go into RA to fill the FRS requirement.
If you choose not to withdraw any extra money in your CPF FRS/BRS, you will enjoy a higher payout when u are 65 yo. Hope this helps ;)
@@axercute Thanks for taking the time to respond.
So assuming I don't have a house at 55.
Scenario 1: If my RA exceeds FRS, the FRS portion is locked up and I cannot withdraw it. (Note that CPF Life website is not very clear about this. They did not mention whether the amount is locked).
Scenario 2: If my RA does not meet FRS, but I am still working, so is it possible to keep adding into RA to top up FRS ? (This one also not very clear).
hi sleep, thanks for replying to my response.
You have mention if you don't have a house situation when u are 55. I would say the chances of reaching FRS is very high because you will merch your OA with your SA to form your RA. You OA will have a lot especially the allocation of funds in CPF.
There are only three situations you cannot meet your FRS:
1.You are self employed and did not declare income to avoid income tax
2.You are a foreigner that just converted to Singaporean/PR at age 40+
3. You choose/cannot work due to mental/health condition which insurance comes in play.
Alternatively, when you reach 55, you are able to withdraw any excess amount when you reach FRS (RA-FRS)
Scenario 2: if you are really self conscious on not meeting your FRS now, you can choose to opt in for RSTU, which tops up your CPF SA or do a CPF OA-SA which I don't recommend if you don't have a house yet due to mortgage loans
@@axercute
@@axercute
Thanks kelvin... Can let me know 1k breakdown so that I can try
Genius video
inflation outstrip 2.6%.... so CPF still ?
all or nothing approach of meme stock/ Crypto with DCA would be a better approach for the long run isnt it ?
Eat nice food everyday confirm up lorry faster.
How to have a comfortable retirement with basic standard of living? Is like saying "you can enjoy yourself in hell"
Hi Kelvin, does it make sense to make a voluntary housing refund ?
Hi Kelvin, in your next video, can you address the concerns of RSTU Top ups to SA as well as the interest earned from these being Reserved and cannot be used for SA Shielding?
If my aim is to do SA shielding, I need to make sure that my RSTU amount and the compounded interest accumulated until I'm 55 don't cross the $40k threshold. The only workaround is OA to SA transfer which allows those funds to be shielded. Or rather, If I want to hit FRS faster, I should do housing refund, then use that $ to transfer to SA to hit FRS faster. I can't imagine those people who reached FRS via RSTU only to find out that majority of the funds are Reserved and cannot be shielded.
hey Kelvin, Koala is not a bear.
Investing in etfs is way better
Will 1Mil CPF + full paid 4R HDB flat enough for retirement for someone is 60 this year?
Depends on that person.
I dont understand why one needs to meet minimum sum to withdraw their own retirement money.
What if i have 90k inside, i cant withdraw at all because minimum is 98k.
And this 98k will eventually become 120k or more due to inflation
90k is still a lot of money, its enough to retire
Why not allow everyone to withdraw regardless of how much is inside?
No wonder we have lots of elderly still working cleaning tables and pushing cardboards
You can always withdraw the first 5k, regardless of your balance meeting FRS or not. That being said, 90k ain’t enough for retirement. Unless you don’t plan to live more than 3-4 years.
Now you know why in 2022, there are elderly suicides are the highest.
Is it wise to pledge property to reach BRS ?
You are talking about things in the future, and yet you doing that using today's statistics and terms.
How will you know what the world, or Singapore for that matter is gonna be like by the time you turn 70?
Imagining if PAP stays in power throughout this entire duration.
- Is the BRS gonna stay at the same amount?
- Is the retirement draw out age still gonna stay at 70?
- What is 770 bucks gonna be at that point of time? Surely you dun expect prices to stay the same as it is today correct?
With the rate that the PAP government are changing the CPF rules in a heartbeat, by constantly moving the goal post, anybody will be dead WRONG to assume that CPF provides you any sort of retirement assurance in the future.
Does the CPF amount projected by seedly include MA?
👍Morning dude
Can. Sell your government house, full withdrawal CPF and live In Malaysia under endowment fund. Deposit all the money in bank for 2.5% bank interest. The interest will be enough to cover all your yearly expenses in RM$
Which CPF plan is better? Escalating, Standard or Basic?
Check out this video ua-cam.com/video/hfkddlruvmE/v-deo.html
Do one about RA interest roll to common pool after 65 and how it work?
For a factual, balanced view, you need to befriend more singaporeans aged 55 and above who have used their CPF for housing. Because too many liars and haters among those who kpkb, complain and blame govt alot. Remember only empty vessels make the most noise.
When they say cpf balance is it just OA? OA + SA or sum of all the accounts?
Sum of all the accounts
Wah brother post so early HAHAHHA. just wokeup leh
Happy monday!!!
Is there anyway cpf would payout more than 4k monthly with the current plan ?
Lol sure if you earn a million dollars a month
Those in their 40s might have a lot in cpf but might not have fully paid for their house. Also no job is permanent now, once u reach your 50s- higher chance of retrenchment
Hi Gerry, it's true that most people face job retrenchment in their 50s, and it's a hassle for house loans because of mortgage insurance + interest...
So if you are at your 40s and have not paid fully on your housing, you have 2 options
Option 1: invest yourself and try to beat mortgage interest of around 3%
Option 2: Do a voluntary housing refund (VHR), basically topping up your OA account to enjoy a 2.5% interest while paying your loan
throw in 100k to golden energy
is it possible to change the allocation rate for cpf like to make it automatic? like i want to fully invest into SA/medisave instead of OA since i might be getting a hdb as a inherited house so i don't need OA
Hi Valuable, don't forget OA ables you to pay your kids education and able you to invest such as IFAST which can potentially beat SA. Before doing that, you need to know transferring from OA to SA is irreversible and you can only take out money when you're 65.
On the other hand, you are able to transfer money from your CPF OA-SA if you really have no plans on using it. Hope this helps :)
@@axercute I rang up CPF a couple weeks ago and was advised that any amount exceeding the tier plan you choose at age 55 can be cashed out whether it's in OA or SA. It seems like my understanding differs from yours, would you be willing to share further information with me?
@@thyBelx hi, regarding about this is true, when you have turned 55, your OA and SA will merch together and become RA(retirement account), and you will be able to withdraw any amount above BRS/FRS depending if you have a house
Impossible. CPF is not to help the rich get richer.
Definitely YES! That was the reason why I retired early.
cpf life
This video must be seen by every Singaporean
"first, ppl who are below 30y old have less than 60k in their CPF balance" *cough* *cough* but not that Honey Money guy 😆
lol 😅 .... Don't have so many wants lor ...
Here's an idea: No sin tax past 55 and life will be very affordable 😂😂😂
The rich stay by spending like the poor and investing without stopping while the poor stay poor by spending like the yet not investing like the rich. INVEST NOW!
not Yishun, the place is scary hahahahaahhahaha
Why people always speak negatively of Yishun?