As a follow up to the previous article Comments on 5 Myths Busted as well as Ways to Get Exempted From the CPF Minimum Sum, Dr Wealth ran an analysis on the likelihood of younger generations of Singaporeans meeting the ever increasing CPF Minimum Sum.
One of the primary fear is that by the age of 55, Singaporeans will not have enough money to meet CPF Minimum Sum, so they will not be able to withdraw any money from their CPF accounts.
While the CPF Minimum Sum is $155,000 currently, at an inflation rate of 3%, by the time a 25 year old reaches 55, the CPF Minimum Sum would be a whopping $376,000! Now, can a Singaporean achieve this Minimum Sum amount in his CPF?
To model this scenario, we made some basic assumptions.
Base Scenario Assumptions
1. Age – 25 years old
2. Beginning Salary Based ......