I am currently 49 this year , how much will i need to contribute for my CPF contribution in order to achieved the Enhanced Retirement sum ?

Hi Anonymous,

Without more information, this question can be hard to be answered. A lot of factor comes into play like the current balance and your current salary.

I've drawn out a case where you MIGHT be drawing 2.5k, and have the following balances:

OA - 20k

SA - 100k

MA - 140k

In that case your age to hit ERS will be 54 as shown:

Of course, the numbers will likely to be very different for you. For that reason, I will suggest you try out this web calculator https://geek.sg/tools/cpf-forecast/, where you can input your parameters and see the result without sharing your private information with third parties.​​​

I estimated the ERS for 2026 to be 324,000. As CPF has yet to officially release the number, please take it with a pinch of salt.

I want to highlight a few points that came up when I evaluated the same issue for a colleague.

1) There's not a lot of time left (6 years) before you need to set aside the Retirement Account. You should look to achieve the FRS amount 181,000 in your SA by end of the year. You can either do voluntary top-up to SA (with up to 7k tax relief), and / or OA to SA transfer to hit this target.

2) the cpf allocation rates for 37% contribution for 50-55 age group is 15% to OA, 11.5% to SA, and 10.5% to MA. You should have hit the max Medisave account by this age though, so the contributions to your Medisave should generally go to SA/OA (unless you have deductions or premiums to pay, eg careshield life).

3) if your takeaway home is 6000 or more, with at least 1 mth bonus, realistically we are looking at cpf contributions of 27, 840 at least from just working. (from allocation above, we are looking at about 11,300 to OA, 8,600 to SA, and balance of 7,900 to Medisave / SA / OA).

So if you have 70k in OA, 181k in SA, 60k max medisave by Dec 2020, we should be realisably expecting around 1500-1750 annual interest to OA, and about 9400 to 10200 annual interest to SA.

If you are earning 6k or more, we can also realisably estimate the contribution to SA at 8,600 per year. Then SA likely projection by 2026 should be around 298k. You should aim then to keep OA at least 26k so the OA + SA = 324k to set aside for ERS. All the excess / remaining OA will become available for withdrawal.

If you don't meet some of the assumptions, then very well try to at least hit the 181k in SA at end of this year. It will definitely bring you closer to that path