Do you means monthly salary remains constant (with no increments) for 20 years, your total CPF contributions (without considering any CPF interest) will match the Full Retirement Sum (FRS) of $205,800 ?
without considering any CPF interest or with consider interest ?
To calculate how many years it will take for your CPF contributions to reach the Basic Retirement Sum (BRS) of $102,900, we need to break this down step by step.
Assumptions:
Monthly salary: $2,500
Total CPF contribution rate: 37% (17% employer + 20% employee)
Monthly CPF contribution amount:
2500 Ã 37% =925
No withdrawals are made, and no interest is considered for simplicity (actual growth will be faster due to CPF interest).
Calculation:
Annual CPF contribution:
925Ã12=11,100 SGD
Number of years to reach $102,900:
102,900÷11,100
â 9.27 years
102,900÷11,100
If the monthly salary is $2,500, it would take 9.27 years to reach the Basic Retirement Sum with CPF contributions alone.
The cost of living in Singapore is so high!
Haha people around me r easily earning 3 to 5x of that. So, even their salary stays at current. They will still reach that.