I’ve decided to read up about CPF after hearing about 1M65, and i learnt that it’s possible to top up my SA up to the FRS which is $181,000 as of 2020 so some questions came to mind.
I am 20 this year, and assuming I do max out the top up and let the SA grow with interest compounded at 4%, my RA would have $710,000~ by the time i’m 55, albeit not calculating the bonus 1% interest on the first $60,000.
Wondering if my thoughts are correct and what will happen to the money that exceeds FRS?
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Bearing any policies changes, ERS will be set aside. Any remining amount, you will be free to withdraw. If you are working and still contribute to CPF, you will have more.
Which is why there are people who see the CPF as rich get richer scheme. The lower classes, who are suppose to benefit, does not seem to benefit as much.
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Please note that the CPF Annual Limit is currently $37,740. Meaning if you include your mandatory contributions plus voluntary contributions the maximum amount you can put into your CPF a year.
You can have more than the ERS in your SA account but you will not be able to contribute more voluntarily once you hit the FRS.