What high inflation? No scare!

 What high inflation? No scare!

After 55yo, CPF monthly contributions, salary cap at $6k p.m @29.5% rate = $1,770

Employee: $900 p.m. (15% of $6k)

Employer: $870 p.m (= 14.5% of $6k)

Total CPF mthly contribution : ($900 + $870) = $1,770

Annual CPF contribution: $1,770 × 13 = $23,010

Imagine one works from 55 to 63:

It adds: $23,010 × (62-55) = $161,070 over 7-years

For a working couple, combined CPF earning : $161,070 p.a. x 2 = $322,140 p.a. for 7-years.

Critics would say still need contribute into MA too.  

But no matter, keep it simple.These additional contributions earn annual interest; we yearly use it to topup our MA or even RA.

With $322,140 from working from age 55 upto 63, the retirement options are plentiful.

In summary, 

-if health permits, 

-work half-time allows, 

-still keep salary above $6k singly, or $12k couple,

you are ready for Fat R; this alone can fund 5.4-years @$5k p.m household expenses.

($5k pm x 12 mth) x 5.4 years = $324,000).

Don't forget that this money in CPF earns at least 2.5%; as you drawdown monthly, these annual interest help buffer your inflation for 5-years.

By then, you are 63 + 5 years = 68yo.

Your portfolio is never touched all these while, is now at your disposal.

At 68yo, effectively delay CPFLife payout for 3-years to earn higher payout.

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