How much is enough for retirement in Singapore?

[concern2]

skunk:

My own grandmother is still around, 93 years old this year. She retired without a single cent in her pocket almost 40 years ago. (in the old days, people retire young lol) Now she's still around, hobbling around on her walking stick and scolding everyone. She really doesn't need money, all her 9 children, each contribute $50 monthly, enough for all her needs. She's healthy and doesn't require any medication, except calcium supplements.

All the \"you need at least $1M to retire\" is all part of a grand plan by \"financial advisors\" to make u feel worried all the time, and park your money with them, so u will be \"secured\" in old age. Pui. The financial institutions can't even secure their own future, want to secure yours/ours?

And \"retirement\" is really a 21st Century urban myth. In the old days, after people stopped their jobs, they were \"employed\" by their children to care for grandchildren, cook and what not. That was what kept my grandma healthy and fit, lots of manual labour, even into her 80s.

Everytime i see those overweight and lazy 60 year olds talking about retirement, i see a couple of pigs oinking away. The sooner society gets rid of the concept of \"retirement\", the better it is for everyone. Nobody will be in a rush to save up, people won't make risky investment decisions, people stop having so many frowns and furrows on their faces, society slows down and is happier.

For myself, the day i \"retire\" is the day i step into my coffin. At current life expectancy of 80+ years, to totally stop work and laze around for 15 years, is a crazy idea born out by lazy pigs.

:rotflmao: Funny, but frank! I like!

So...since your 93 year-old grandma isn't working, would you consider her a pig? Or is scolding everyone part of her 'job'? :evil:
_____

Woao, just realised this is an old thread revived.

[dolphinsiah]

I understand from CPF website when we reached 55 , our CPF Minimum Sum will be locked for Retirement ...now is SGD131K.


But we are allowed to pledge our property .....

Can some kind soul explain how does this pledging of property works....

Because the CPF website explaination is not clear.....

Assume I have a fully paid property , and I also meet the Minimum Sum (MS)set by CPF....

Can I still pledge my property for 50% to the MS...
So I can cash out more money at 55?? :evil:

Thank you....

[Nebbermind]

You talking about reverse mortgage of the HDB flats?

[dolphinsiah]

Nebbermind:

You talking about reverse mortgage of the HDB flats?

No not about reverse mortgage about Pledging our Property to CPF....upon reaching 55....

Extracted from CPF website:
http://www.cpf.gov.sg/MyCPF/Reaching55_Print.asp#Pledge

3.
You may pledge your property up to 50% of the Minimum Sum. In the event that the property is sold or otherwise disposed of, you are required to refund the pledged amount plus accrued interest to your Retirement Account.

The amount that you can pledge depends on
•
HDB’s quarterly average valuation price for HDB flats or valuation price for private properties;
•
Outstanding housing loan amount (including non-housing loan for private properties);
•
Co-owner’s CPF usage (for joint-ownership cases); and
•Your share of the property.


:thankyou: Can help to share more details about this Pledging at 55....?

[wiimum]

I will try to explain based on what I know:


CPF minimum sum has been increased from $131 K to $139 K now.
I believe at 55( you can confirm via email to CPF : [email protected]), if you have at least 139K in your special account, then this 139K will be moved(read :locked away!) to the Retirement account and you would have to decide which of the CPF life plan you wish to select(basic or standard)
So at 55 you now have 4 cpf account: Ordinary, special, medisave and retirement.

If you do not have 139k in your special account, then CPF will look into your ordinary, medisave to make up for the shortfall. If still not enough then you can pledge up to 50% of that 139k with your your property.
You will not see anything from that RA until you turn 65 (provided you live till then) which is call the draw down age. From 65 you will start to get the pay out from the CPF life plan. Depending on which you choose, the amount for the default plan(standard plan) is higher. I understand is about $1200 thereabout, the exact amount ultimately depend on how much $$ you have in the RA.

Hope it helps.

[dolphinsiah]

:thankyou: wiimum,


I fully understand your explaination ...if a person do not meet the MS during at the age of 55.-they need to pledge their property....

But what if the person meet the CPF MS at age of 55 can he or she still pledge the fully paid property.

So that he or she can take out more cash at the age of 55?

I know I should be able to hit the MS by 55 if I continue to work for the next 10 years...and CPF interest rates do not change.

I am worry at the age of 55 , I do not have any cash :moneyflies: to take out .... :skeptical:
Because all will be lock up in the Retirement Account(RA) until 65....

If can take out more cash :moneyflies: , can plan to tour before too old to walk... :evil:


For your kind comment ,please. :please:

[wiimum]

dolphinsiah:

I know I should be able to hit the MS by 55 if I continue to work for the next 10 years...and CPF interest rates do not change.

I am worry at the age of 55 , I do not have any cash :moneyflies: to take out .... :skeptical:
Because all will be lock up in the Retirement Account(RA) until 65....

If can take out more cash :moneyflies: , can plan to tour before too old to walk... :evil:

I know what you mean, I also think along your way. However, knowing our government, that is precisely the thing they will stop you from doing! What tour! Lock up your money first before you spend it! so that you can finance your own retirement and not rely on the government.

Also don't forget, the minimum sum will be creeping up every year to adjust for inflation so it will be a moving target, not stay at $139K.Best to email them directly to confirm but I think my suspicion/intuition is correct. Let me know once you confirm it!

[Harlequin]

dolphinsiah:

:thankyou: wiimum,


I fully understand your explaination ...if a person do not meet the MS during at the age of 55.-they need to pledge their property....

But what if the person meet the CPF MS at age of 55 can he or she still pledge the fully paid property.
No. But you can go to the banks for refinancing (mortgage)

So that he or she can take out more cash at the age of 55?
No withdrawal at 55, right?

I know I should be able to hit the MS by 55 if I continue to work for the next 10 years...and CPF interest rates do not change.

I am worry at the age of 55 , I do not have any cash :moneyflies: to take out .... :skeptical:
Because all will be lock up in the Retirement Account(RA) until 65....

I assumed you are at your mid 40s. If like what you said, you need to work for 10 more years to accrue to meet the minimum of MS (projected to be about $160k ten years from now.) you are not in the high salaried cash rich group, hence the best option is to mortgage your fully paid up private property to any finance institution for a lump sum of cash.

If can take out more cash :moneyflies: , can plan to tour before too old to walk... :evil:


For your kind comment ,please. :please:

[dolphinsiah]

Hi Wiimum & Harlequin,


I did talk to the bank about Equity Loan.

Mortagage your property when it is fully paid...

UOB & Citibank offer this kind of loan....

But then , it is back to borrowing money from the bank :moneyflies:

I hate working for the bank..... :censored:

I hate to picture myself still working beyond 55...

So looks like no choice .. I have to work until 65... :scared:

[Harlequin]

In a reverse mortgage, the home owner is under no obligation to make monthly payments (but is free to do so with no pre-payment penalties).

Title to the property remains in the name of the homeowners, to be disposed of as they wish, encumbered only by the amount owing under the mortgage.

Another way is to sell it, or so called downgrade, if having good cash at your retirement age is your target.

Pledging your property to CPF is just to meet the short fall of MS, and cap at 50% of MS (50% of $139,000 as of today)… pledging of property to CPF is not meeting your objective of attaining good sum of cash at retirement age. IMHO.