If you are looking for a useful New Year resolution, make retirement planning a priority so you can take advantage of a new and important change to CPF that kicked in on Jan 1, 2025.
Those turning 55 now have the option of doubling their retirement savings, from the mandatory full retirement sum of $213,000 to the new enhanced retirement sum (ERS) of $426,000 for CPF Life.
If you make such voluntary top-ups, you will receive higher monthly payouts of about $3,300 from age 65, almost double the $1,700 payout for those who choose not to do so.
The chance to have a higher fixed monthly income in retirement is also open to folk over 55 if they make top-ups to their CPF Retirement Accounts to hit the new ERS with either cash or funds already in their CPF account.
People in this group can log into myCPF portal to check the estimated payout they could get with their top-ups as they will hit 65 earlier and so receive payouts sooner.
The new ERS is a major boost to our retirement planning effort because the higher payout of over $3,000 a month means many of us can now rely on our CPF alone to have a fairly comfortable retirement.
Estimates by banks such as OCBC show that people who can get more than $3,000 in retirement income a month may even be able to keep a mid-range car and enjoy short overseas holidays every year.
This aspiration is certainly achievable for couples who plan for the new ERS together because it means that they can receive two sets of payouts from the national annuity scheme, or over $6,000 a month.
Such an amount is not something to scoff at because it means that in just 10 years, or by age 75, a couple would have received over $720,000, and $1.44 million by age 85.
These sums are just payments from CPF Life alone, and do not include other income sources you may have, such as interest earned from the remaining CPF balances as well as your bank savings and other investments.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Victoria!
Ein Hofwagen und seine bewegte Geschichte A Court Carriage and its Colourful History
Disney's LinaBell Wins Hearts in China
Each week, whenever she has time off from her marketing job, Ms Ida Jia can be found at Shanghai Disneyland, queueing for hours to spend a few minutes with LinaBell, a fluffy pink fox character with big blue eyes.
Missing actor found near Myanmar border
A Chinese actor who went missing near Thailand's border with Myanmar has been found, the Thai authorities said, as they sought to contain the fallout of the incident on the nation's vital tourism industry.
TV Networks Drop Smap's Masahiro Nakai Over Sex-Crime Allegations
Major TV networks have distanced themselves from one of Japan's biggest 1990s boy band stars, after media reports said he paid a woman a large settlement related to alleged sexual misconduct.
Girls' Generation's Taeyeon to perform in Singapore
South Korean singer Taeyeon, a member of K-pop girl group Girls' Generation, has a new concert tour for 2025, which will make a stop in Singapore.
American Millionaire's Blueprint for Longevity
Bryan Johnson, subject of the documentary Don't Die: The Man Who Wants To Live Forever, says Singaporean Chuando Tan's agelessness shows what biology is capable of
The Substance director not surprised by Demi Moore's late-career comeback
Demi Moore's Golden Globe Best Actress in a Motion Picture - Musical or Comedy win for The Substance has, almost overnight, transformed the 1990s megastar into a seemingly unlikely favourite for the Oscars.
Better Man and Count Of Monte Cristo are electrifying tales
Britpop superstar Robbie Williams is a walking, talking, singing chimpanzee in an autobiography of his childhood through his three decades in the music industry, breaking away from the 1990s boy band Take That for solo success.
TV adaptation honours Gabriel Garcia Marquez's magic
This first eight-episode season landed on Netflix in mid-December, with a puzzling lack of marketing.
In Stranger Eyes, the voyeur becomes the viewed
Film-maker Yeo Siew Hua asks heavy questions with a light touch in the crime story
