If you’re using your CPF savings for housing, be cautious!
Unless you’re confident that you’ll have adequate cash savings for your old age, it’s not prudent to adopt a mindset of wanting to maximize the use of your CPF for housing.
If you “maximize”, please bear in mind that you may have very little savings after 55. You should also plan to pay off the housing loan by 55 (http://www.moneysense.gov.sg/ publications/guides_publications/ Consumer_Portal_MoneySense_ ConsumerGuides.html). |
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You may also end up being “asset-rich, cash-poor” where you have little cash for day-to-day expenses in retirement (this is especially if you have also used your cash savings/income for housing).
So how can you get a ball-park estimate of where you’ll be financially at retirement?
While this isn’t meant to replace your personal financial planning or seeking advice from financial advisers/planners, we suggest that you go through these steps to get a rough idea of a possible retirement financial position.
| You may need some time and effort to complete this exercise. Your financial future lies in your own hands, so we encourage you to make time for yourself! |
Estimate the monthly income you might need during retirement.
Estimate your retirement nest egg using the CPF Retirement Calculator | |