Asked on 11 Aug 2018
CPF original intention is for retirement. Just that over the years it becomes allow for property or study loan to kids.
Back to its root purpose , it is a pensions with interest growth for our retirement living expenses. Thus it is not savings since it only has the above 3 purposes and mainly for retirement.
Savings using our cash has many intention including the above but mostly for weddings, study , investment and property purchases. At the end, this is a mutual purpose liquid components.
Therefore, I would only consider CPF when planning for retirement living expenses. Other than that, it is best not to consider CPF as part of any other things.
I don't actually factor in CPF as savings. Because they can only be taken out after a certain age, I prefer to think of them as my war chest, which can only be opened many years later. Thus, I prefer to have my own savings in the form of cash and short term bonds :)
Savings Targets : Housing, Medical, Retirement, Emergency Funds.
CPF is not included because it is illiquid.
To me CPF is not considered savings. But rather a commitment. As you need to accumulate enough cash to hit the retirement sum. For a reckon, if I were to purchase a flat, I'll try to actually pay the installments using cash. As when you sell the flat, if you touched your cpf, you'll have to pay back whatever you owe + interest from the proceeds.
CPF in my view is not part of savings as it can’t be used like money in a normal savings account. This is more for retirement or purchase of housing.
my personal targets
housing -> full sum
holiday around the world 🌍
No for CPF as you cannot touch the it till your retirement and the minimum requirements might change again.
I do factor in endowment plans though..
CPF is a very good tool for long term wealth accumulation, not for short term emergency fund. So it is definitely still saving. If you don't buy an expensive private property, many HDB owners can still retire with half a million in their CPF. Enough for a comfortable retirement! I've met many of them. However, some people thinks buying private is a good investment, then end up asset rich cash poor.
Being a risk averse, not knowing when will rainy days will come, I didn't set a savings target. Use the concept of pay yourself first as per what Marcus said. I have POSB SAYE (save as you earn) account which will automatically Giro a portion of my monthly salary into separate savings account.
I don't include CPF as my savings since it's still long before I can withdraw it (assuming no plan to buy house or for child's education in the near future).
CPF are more like an obligation or commitment that you have to park in a % of your income and it is best recommended not to factor in as savings as you can only retrieve it when you retire.
CPF is a good initiative that allow you to start saving early and let the money compound over time that will be used for your retirement and prevent you from living paycheck to paycheck.
Implement the concept of Pay Yourself First where you salary get automatically credited into your savings account which will prevent you spending on useless stuff.
No, I won't consider CPF as a saving actually.. I mean it's good for housing and all but long term wise I don't know if I can even withdraw it so I'm just taking it as a bonus.
Factors I consider for savings includes my daily expenses. What am I overspending on and what can I cut down to increase the amount allocated for savings.. I also set up automated transfer so the money is "gone" to the saving account before I even sees it.
CPF is a retirement vehicle which you can use for ppty purchase and study loan.
Bear in mind that it is a retirement vehicle, so by using the money in this vehicle you have to pay urself back the accurred interests.
Savings is the mother of all investment.
Your Savings must have a goal that will benefit yourself in the future.
Eg. Income Generating Asset
IF your Savings Goal is just for travelling and enjoyment, is wiser to learn how to save when you spend rather then save up to spend all.
Hope my reply helps.
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I do not consider CPF as savings because you cannot withdraw it in an emergency nor can you use it for anything till a certain age. The withdrawal age may also change and is something we cannot control.
CPF helps supplement housing and retirement but do not solely rely on it.
For savings target, try to set up automated savings. Fix a percentage or an amount to auto save. Cut down on expenses and try to increase your auto saving amount slowly.