I found this CPF Calculator

Check out this CPF calculator by the Value Warrior. I found it very useful. There is also another CPF calculator under the Endowus Page but I have not included the link here. 

I did do a personal projection of CPF using my excel sheets, however the results are not really the same. I made the assumption that there will be no salary increments and bonuses because my employer is very very stingy and doesn't appreciate the staff. We should even be lucky to still have this job. Anyway, using the most pessimistic assumptions, this site says I have barely reached ERS. But Endowus says I will run out of withdrawal CPF by the age of 82 unless I have invested with them. Should I be worried? Actually I did do my own investments of CPF OA which is not reflected in the predictions. I can't really say the dividends are really generating wonderful amounts but there is some form of capital appreciation as some of this were bought during the market crash during our first year into the pandemic. All these numbers are making my head swim.

Meanwhile, the situation at home is not good. The old parents health are not doing well. They don't have much savings left due to their bad planning and they don't have much medical insurance coverage. The burden will be upon us. They had the money but didn't save and invest well. Now the headache is upon us. I'm determined to top up my CPF again every year but if my parents medical bills suck up my savings, my plans will be derailed. I can only pray for a better job with better pay.

I read horrible news of how scammers also cheated so many people by sending them fake links to banking sites that look like the actual bank. I would like to emphasize never never click on anything from any email, sms and watsapp and wherever.  It's scary and terrible. 

Some notes on RSTU CPF

I have wonderful news! Well, at least to me. I've just done a top up of my special account. Hooray! This is the first time that I am topping up at so early in the year. I usually wait till it's the end of the year. I've read that topping up at the beginning of the year allows you to earn more interest for your account and since I am way behind in achieving the Full Retirement Sum (FRS), people like me should try to top up as earlier in the year as possible. There are folks who even did it exactly on the 1st January 2022. 

The top up was so fast and the amount was immediately shown in the app. I used the CPF app to do this top up with paynow. Once the transaction was done, the balance was done immediately!

Although I do feel a pinch in my savings account for doing this, I'm doing this for the better future old age. According to the app, there is a term that says "Part of this account has been reserved." I googled to find out what is that. It simply means that whatever you top up, cannot be withdrawn after 55. This money will be used as part of your CPF Life. Now I understand why there are advocates who are earnestly topping up their SAs before retirement. If you can hit the FRS at a faster rate, the balance will be available for your withdrawal after 55, assuming that you do not want to go for the ERS. But my advice is if you are still going to continue working after 55, leave your money in there to continue earning the 4% of interest. There is no bank deposit out there that can offer you a higher interest rate. So if you top up towards your CPF Life account and hit the FRS, you can treat the SA as a savings account that can earn a higher interest rate. 

It is also better to target for the ERS limit after 55 if you want a better retirement income plan. Whenever I look at the mistake my parents made with their retirement funds, I am motivated to work towards achieving the ERS.  For those of you who come from a comfortable life, you may not feel what I'm going through. Because of my parents mistakes, the burden of taking care of their retirement is on me and my sibling. 

Never ever assume that you will die before you can see your CPF money. Never have this strange believe that the government will take your money or force you to work till you die. I read so many funny comments online. Anyway, I shall save that for another time. Till the next blog.