Will the BRS (basic retirement sum) and FRS (full retirement sum) keep increasing as we age and hit the 55 year old mark? What will be a good number to predict? - Seedly

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Asked on 10 Jun 2019

# Will the BRS (basic retirement sum) and FRS (full retirement sum) keep increasing as we age and hit the 55 year old mark? What will be a good number to predict?

I am 30 this year and likely will need to have upwards of \$300k for my FRS?

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According to CPF website, you will see minimum sum increasing by \$5k per year base on track record. If you are 30 this year and when you reach 55, the amount of \$176,000 will balloon to \$301,000 for FRS.

https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/retirement-sum-scheme

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Kenneth Lou, Co-founder at Seedly

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Level 8. Wizard
Updated on 11 Jun 2019

Yeah likewise from what we observe.

I actually did a simple calculation of how much we would likely need by the time we grow up (for a 27 year old individual) today.

It will definitely rise, due to:

• Inflation
• Increasing cost of living
• People living older (life expectancy)

TL;DR: For A 27 year old, you will probably need around \$316k in your CPF before you can withdraw the excess

• Singaporeans will need to know that the basic retirement sum will DEFINITELY INCREASE over the years
• For example, at age 55, if you have \$400k in your CPF, you will only be able to take out \$84k (400-316) based on the above estimate of \$316k for retirement sum
• If you don’t have this amount, you will continue contributing to your CPF till age 65 or 70 where your payouts will begin
• For most people who factor CPF into your retirement nest egg, your basic amount in that account will be higher over the years
• This is due to inflation and increasing costs of living (very legit reasons) so the earlier in life you know this, the better (Period. If not You Not be LIT AF when you are 55)
• You should probably take a more pro-active step to managing your money (outside CPF) to counter this in later years (particularly if you are like me and have made your first huge HDB purchase)