Anonymous

03 May 2019

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Will I be able to meet Retirement Sum in 20 years?

Example, I'm earning $4k, with $32k in MA and $30k in SA.

Taking an average of 9% allocation to MA for 20 years:
(9% x $4k + $32) compound 20 years @4% = ~$198k

and

Taking an average of 7% allocation to SA for 20 years:
(7% x $4k + $30) compound 20 years @4% = ~$170k

Total i would have ($368k-BHS) for RA.

Note that I have not included OA as it is used for housing needs.

Am I able to meet Retirement Sum in 20 years time?

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Brandan Chen

03 May 2019

Financial Planner at Manulife Singapore

Actually no need to worry about hitting Retirement Sum.

You also should take into consideration potential income increase and your annual bonuses if any.

On top of which, pledging your property as a collateral is a viable option too. You can also consider topping up your SA account

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Hariz Arthur Maloy

03 May 2019

Independent Financial Advisor at Promiseland Independent

Yes most probably. You can expect FRS to grow by about 5-6k every year or so.

So that'll be 276-296k in 20 years.

And don't worry, you'll still be able to do a property pledge if you don't hit FRS.

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