Let me start this post by the following statement:

At least 31% of your wealth are in CPF

Rub your eyes, stare at the statement again. <No, this is not a typo> If your only source of income is your full-time employment, then a whooping 31% of your income goes to CPF, and the remaining 69% are the cold hard cash you receive as monthly take-home pay.

Are you kidding me? 31%?

For readers who are convinced, you may skip to the next section. Otherwise, read on for a quick explanation.

For employee below 55, 20% of your wage will be contributed towards CPF, while your employer contribute an additional 17%. This means that for a person earning $1k per month, take-home pay is only $800, and total CPF contribution adds up to $370; this equates to 69% and 31% respectively.

In fact, you (very …