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09-05-2014, 09:30 PM
An honorable member of the Coffee Shop Has Just Posted the Following:
Myth 4: The Minimum Sum prevents us from using our CPF money.
This is not true. The Minimum Sum(MS) is adjusted for inflation on an annual basis for each cohort. This is necessary because the retirement income needed in real terms for someone who turns 55 in 2014 will not be the same as what would be needed for someone who turns 55 in 2024. $100 today would be worth less than $100 in 10 years’ time.
Considering that a price of your favourite kopi or kaya toast would keep increasing due to inflation, it helps to set aside a sustainable nest egg.
The Minimum Sum exists to ensure that our nest egg is spread out comfortably to last us not just for one or two years after retirement, but throughout our golden years.
The adjustment for inflation will not affect the Minimum Sum of people who have already turned 55. Here is a table of the changes:
http://www.gov.sg/government/web/con...cpfmoniesfacts (http://www.gov.sg/government/web/content/govsg/classic/factually/factually_20140415_cpfmoniesfacts)
Click here to view the whole thread at www.sammyboy.com (http://sammyboy.com/showthread.php?181277-Govt-issues-long-reply-to-Heart-Truths-on-CPF-issues&goto=newpost).
Myth 4: The Minimum Sum prevents us from using our CPF money.
This is not true. The Minimum Sum(MS) is adjusted for inflation on an annual basis for each cohort. This is necessary because the retirement income needed in real terms for someone who turns 55 in 2014 will not be the same as what would be needed for someone who turns 55 in 2024. $100 today would be worth less than $100 in 10 years’ time.
Considering that a price of your favourite kopi or kaya toast would keep increasing due to inflation, it helps to set aside a sustainable nest egg.
The Minimum Sum exists to ensure that our nest egg is spread out comfortably to last us not just for one or two years after retirement, but throughout our golden years.
The adjustment for inflation will not affect the Minimum Sum of people who have already turned 55. Here is a table of the changes:
http://www.gov.sg/government/web/con...cpfmoniesfacts (http://www.gov.sg/government/web/content/govsg/classic/factually/factually_20140415_cpfmoniesfacts)
Click here to view the whole thread at www.sammyboy.com (http://sammyboy.com/showthread.php?181277-Govt-issues-long-reply-to-Heart-Truths-on-CPF-issues&goto=newpost).