Hi all, I would like to find out about CPF Savings and CPF LIFE payout for personal retirement in 30 years time?

Hi anon,

With a little bit of borrowing from the CPF website, here is a quick overview.

CPF is a comprehensive social security system that enables working Singapore Citizens and Permanent Residents to set aside funds for retirement. It also addresses healthcare, home ownership, family protection and asset enhancement.

Working Singaporeans and their employers make monthly contributions to the CPF and these contributions go into three accounts:

Ordinary Account - the savings can be used to buy a home, pay for CPF insurance, investment and education.

Special Account - for old age and investment in retirement-related financial products.

Medisave Account - the savings can be used for hospitalisation expenses and approved medical insurance.

For retirement, Special Account monies will be transferred to the Retirement Account at the age of 55, and CPF LIFE as an annuity pays you a stream of income for life at the age of 65.

This website gives you a very good overview of CPF: https://www.cpf.gov.sg/Members/AboutUs/about-us...

The key is to understand that CPF can only work for you if you help yourself first. Thus, regular contributions from work are the key to ensure that you unlock the full potential of CPF. It may seem that CPF build slowly, but that is just how compound interest works.

Depending on your situation, you may wish to supplement your CPF contributions with voluntary top ups up to the annual limit, Retirement Sum Topping Up Scheme, voluntary Medisave top ups, etc. These help your CPF balances compound faster and will form a safety net for you in retirement. CPF money is also protected from creditors so it will always be there for you.

Once you have a solid plan in place for your CPF, work on other financial aspects of your roadmap towards retirement.

Policies can and in all likelihood, will change in the next 30 years. So I won't be even worried about CPF life.

There are 3 accounts in your CPF - OA, SA and MA.

Medisave (MA) - for buying hospital shield plan, careshield. For day to day use in retirement, don't depend on MA.

Ordinary (OA) and Special (SA) - these forms the basis of your retirement funds.

As of today, the retirement sum is $186000. Anything above this in OA and SA, you can withdraw out and spend it how ever you want at 55.

once you get this concept, then you can search of ways to maximise returns.

but i say again, the policies and retirement sum will change in future. so don't be too fixated on CPF, more important is to get a good job, save, spend and invest wisely.

hope this helps.