Setting aside your retirement sum
How much do we need to retire in Singapore depends on your Retirement Account
A retirement account (RA) is created for you on your 55th birthday and how much do we need to retire in Singapore most of the time depends on how much there is in our retirement account. It will be coming from your savings from your Special account (SA) and your Ordinary account (OA) meeting the Full Retirement Sum Scheme which will, later on, provide you with the monthly payout for as long as you live. As of the year 2018, the amount is $171,000 which increase on a yearly basis. The payout to be received by you will depend on the retirement sum you set aside in RA. To have a higher monthly payout from this retirement account, you can top up the RA up to the Enhanced Retirement Sum, something that you might want to consider when it comes to Retirement planning Singapore.
2 Common questions about retirement account asked by my clients.
#1 How much can you withdraw at age 55 from your CPF?
This depends whether if you meet the Full retirement Sum Scheme which is making up by your Speical Account and Ordinary Account.
$5,000, or your Ordinary and Special Account savings above your Full Retirement Sum, whichever is higher will be the amount you can withdraw at age 55.
You can read more from here from the CPF website.
#2 What happened to my CPF savings if I do not withdrawal
It is not necessary to withdraw the amount at age 55. You can choose to leave your CPF savings in the respective accounts so that you can make use of the attractive interest which CPF is offering. There is no limit to the number of times you can withdraw the funds in a year that is something very attractive as flexible is always a concern to retirees.
In this section, we list out content that can help you know more about retirement planning
- How retirement blueprint helps one of my clients retire 5 years earlier than expected
- How to plan for retirement in Singapore ( 3 things you can’t do without)
- Retirement Planning: Tips On Making Full Use Of Your CPF
- Smart Retirement Planning Tips
- Retirement Planning Singapore: CPF LIFE (3 Things To Know)
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