You may have heard of 1M65 — a local movement where individuals aim to accumulate S$1 million by the age of 65.



The idea behind 1M65 is by keeping your money invested in CPF and allowing it to compound over your working lifetime, you can achieve the target goal of $1M by age 65.

Parameter	Value
Starting Age for both husband and wife	30 years old
Starting CPF Balance for each person	At least $130,000 in SA and MA
Monthly Salary for each person	$4,000
Annual Interest Rate	4% (compounded)
Desired CPF Balance at age 65	$1,000,000
Final CPF Balance after 35 years	$1.3523 million SGD

At around 30 years old, both you and your spouse should each have at least $130,000 in your CPF Special Account (SA) and MediSave Account (MA) combined.

The prevailing interest rate of 4 per cent compounded over time will grow both of your combined CPF balances to $1 million by 65 years old.





Key changes that the CPF has gone through:

In its original iteration in 1955, a member could withdraw everything at 55 years of age.

1977 — The Special Account was created for retirement purposes.

1981 — CPF was liberalised to allow the funds to be used for housing.

1984 — The Medisave Account was created to allow members to use the funds for medical bills.

1986 — CPF funds were allowed to be used for specific types of investments.






1987 — The minimum sum scheme was introduced where CPF savings were disbursed over a 20 year period.




The "minimum sum scheme" refers to a policy in the Central Provident Fund (CPF) system in Singapore. Under this scheme, CPF savings are disbursed over a 20-year period.


It means that when an individual reaches a certain age, their CPF savings are not paid out as a lump sum but are spread out and disbursed gradually over two decades to provide financial security and support in retirement.


This is designed to ensure that individuals have a regular stream of income in their retirement years rather than receiving all their savings at once.





1990 — Medishield health insurance funded by CPF funds was introduced to provide a form of universal healthcare to all members.

2014 — The CPF Life annuity plan was introduced which improved on the minimum sum scheme.



CPF Future Value Calculator


Both the husband and wife have a monthly salary of $4,000 each.


Here's the calculation :

Starting CPF Balance for each person: $130,000

Monthly Salary for each person: $4,000

Monthly CPF Contribution for each person: Approximately 37% of the monthly salary, so it will be around $1,480 per month

Annual Interest Rate: Assumed 4% (compounded)

Now, let's recalculate the CPF balance at age 65 using the updated monthly contribution:

You can use the future value formula:

FV = P * [(1 + r)^n - 1] / r

Where:

FV is the future value (the CPF balance at age 65)
P is the periodic contribution ($1,480 per month)
r is the periodic interest rate (4% annually, so 0.04/12 per month)

n is the number of periods (in months) until they both reach age 65, given that they are currently 30 years old (which is equivalent to 35 years or 420 months).

Now, plug in the values and calculate for one person:



$130,000 compoind interest after 35 years

= $130,000 * (1 + 0.04)^35
= $ 512,991




FV

= $512,991 + ($1480 * ( ( (1 + (0.04 / 12) )^ (35 * 12) ) - 1) ) / (0.04 / 12))

= 1.8653 millions



Calculating this will give you an approximate CPF balance for one person at age 65 with the updated salary. To get the combined balance for both husband and wife, double this result, as both have similar contributions and starting balances.

This recalculation should provide an estimate of their CPF balance at age 65 based on the new salary amount and the provided assumptions.

This post has been edited by plouffle0789: Nov 2 2023, 11:22 AM

Who cares about Singapork?

Barua Israhell

average ktard go for 20M65 MY. sinkie jealous.

Any statistics?


Since 1987,their CPF have a big change!!!!


Malaysia only now want to do research on implemention this withdrawal scheme....


1987 — The minimum sum scheme was introduced where CPF savings were disbursed over a 20 year period.




The "minimum sum scheme" refers to a policy in the Central Provident Fund (CPF) system in Singapore. Under this scheme, CPF savings are disbursed over a 20-year period.


It means that when an individual reaches a certain age, their CPF savings are not paid out as a lump sum but are spread out and disbursed gradually over two decades to provide financial security and support in retirement.


This is designed to ensure that individuals have a regular stream of income in their retirement years rather than receiving all their savings at once.




The increase in "retirement savings" is necessary due to factors like inflation, improved living standards, and longer life expectancies.


Inflation causes the prices of goods and services to rise over time, making it essential to adjust retirement savings to ensure they can support the desired retirement lifestyle.



If retirement savings remained at the 1987 level of $30,000, it would only provide around $300 per month today.


Most people aim for higher monthly income during retirement.




In 2020, if someone saved $181,000 ( full retirement sum) by the time they turned 65, they would receive about $1,440 each month to help cover their living expenses during retirement.





This is a way to make sure people have enough money to support themselves when they stop working.



Adjusting retirement savings to account for these factors helps ensure a more comfortable retirement.




This post has been edited by plouffle0789: Oct 31 2023, 02:14 PM

Bro, i can't find the thread to reply you this.
Its1200sqft, he can't remember for sure its 35x65 plus minus <180k. Yes application is tricky, he got it after 4 years upon reg

This post has been edited by jojolicia: Oct 31 2023, 04:07 PM

Thanks bro

I private message you..

This post has been edited by plouffle0789: Oct 31 2023, 04:18 PM

i calculate the according to poster and i got almost 9.5m?

please show your calculation here

Singapore CPF has max cap per year so even if salary is high, it still takes lots of years and efforts to reach 1M. Those who have spare money are encouraged to invest in Treasury Bill instead. So CPF is not indicative of a person retirement savings once salary has exceeded a certain level.

What's the max cap currently ya. Do you know?

Why need to be in SG wo.. at this rate i hate 55 already > 3.5m alone no need combine combine.

This one no.... Don't bother. Most pple cannot achieve. Because of housing. Most pple use their cpf to buy hoise instead

Treasury Bill return % ?


Singapore PR or EP HOLDER can buy?

This post has been edited by plouffle0789: Nov 2 2023, 07:00 AM

means if you ,you revoke your PR on age 55 ,and retired at malaysia?


1 milion SGD = RM3.5 MILLION

Under the Ordinary Wages component, which is typically our monthly salary, the CPF contribution ceiling is capped at $6,000 per month.



This means only the first $6,000 of our monthly salaries require CPF contributions from us and our employers.



If we earn more, any amounts above the first $6,000 will not attract any employer or employee CPF contributions.



The CPF monthly salary ceiling will increase to $8,000 in 2026 (


in Sep 2023: $6,300;

Jan 2024: $6,800;


Jan 2025: $7,400; and


Jan 2026: $8,000).

No I'm in Malaysian, earning here, stay here, shit here.

Thats no good.. in fact very bad.if i go already got close to 5 figure. 2-3 years time get PR cpf contributions capped at 8k very sad. Thanks for the info.

https://blog.seedly.sg/treasury-bills-t-bil...ingapore-guide/

May I know what is your sector?

Do you have more than 15 years of experience?

Do you want a higher percentage of CPF deduction?

Most people typically want less.

How Do I Buy T-Bills in Singapore?
Before applying, make sure you have the following:

A bank account with any local banks in Singapore (DBS/POSB, OCBC, or UOB)

Central Depository (CDP) account that is linked to the bank account you intend to invest with

A CPF Investment Account with one of the three CPFIS agent banks (DBS/POSB, OCBC, and UOB) for CPFIS-OA investments (no account needed for CPFIS-SA investments).

An SRS account if you are using funds from your SRS.



Means NO CPF cannot buy....

bila /k jadi singapork.sg?

U can buy using cash

https://www.dbs.com.sg/personal/articles/na...(CPFIS)%20funds.

Lol 65 wait die edi
Wat use

U calculate and show here la

Parameter	Value
----------------------------	---------------------------------------------
**Starting CPF Balance**	- Husband: $130,000
	- Wife: $130,000
**Monthly Salary**	- Husband: $8,000
	- Wife: $8,000
**Monthly CPF Contribution**	- Husband: Approximately $2,960
	- Wife: Approximately $2,960
**Annual Interest Rate**	- Assumed 4% (compounded)
**Desired CPF Balance**	- $1,000,000

Calculation Details:

--------------------------------------------------------------------------

To determine if you can reach a combined CPF balance of $1 million by

the time you're 65 years old, we can use the information provided and

make some assumptions.

1. **Starting Balance:** Both you and your spouse have at least $130,000

each in your CPF Special Account (SA) and MediSave Account (MA)

combined. So, the starting balance for each person is $130,000.

2. **Salary:** Both of you have a salary of 1 month $8,000. Assuming you

each contribute your Ordinary Wages (OW) to CPF, which includes both

the employee and employer contributions, it's typically around 37% of

your salary. This means you both contribute around $2,960 per month

to CPF (37% of $8,000).

3. **Interest Rate:** You mentioned a prevailing interest rate of 4%

compounded over time. For CPF calculations, it's essential to use the

specific CPF interest rates applicable during the years in question,

as they can vary. But for this example, let's assume a constant 4%

annual interest rate.

Now, you can calculate the growth of your CPF balance over time. You

want to find out when your combined CPF balance will reach $1 million.

You can use a future value formula.

FV = P * (1 + r)^n

Where:

- FV is the future value ($1,000,000)

- P is the periodic contribution ($2,960 per month)

- r is the periodic interest rate (4% annually, so 0.04/12 per month)

- n is the number of periods (in months)

Now, you can solve for n (the number of months it will take to reach

$1,000,000).

n = log(($1,000,000 / $2,960), (1 + 0.04/12))

Using this formula, you can calculate how many months it will take to

reach $1 million. Keep in mind that this is a simplified calculation,

and CPF interest rates can vary over time.

Starting CPF Balance for each person: $130,000

Monthly Salary for each person: $8,000

Monthly CPF Contribution for each person: Approximately $2,960

Annual Interest Rate: Assumed 4% (compounded)

Since they both contribute approximately $2,960 per month to CPF and you want to find out their balance at age 65, you'll have to calculate the future value of these contributions with the assumed interest rate of 4%.

You can use the future value formula:

FV = P * [(1 + r)^n - 1] / r

Where:

FV is the future value (the CPF balance at age 65)
P is the periodic contribution ($2,960 per month)
r is the periodic interest rate (4% annually, so 0.04/12 per month)



n is the number of periods (in months) until they both reach age 65, given that they are currently 30 years old (which is equivalent to 35 years or 420 months).




$130,000 compoind interest after 35 years

= $ 130,000 * (1 + 0.04)^35
= $ 512,991


FV = $ 512,991 + $2,960 * [(1 + 0.04/12)^(35*12) - 1] / (0.04/12)
= $ 3.2176 millions

Calculating this will give you an approximate CPF balance for one person at age 65. To get the combined balance for both husband and wife, you can simply double this result, as both have similar contributions and starting balances.

The calculation should give you an estimate of their CPF balance at age 65 based on the provided information and assumptions.


$ 3.2176 millions !!!!!!


Just having both the husband and wife with a $4,000 monthly salary for each person at age 30 is sufficient to potentially reach more than 1 million in their CPF accounts.



Please see my previous post again.

This post has been edited by plouffle0789: Nov 2 2023, 11:24 AM

Starting CPF Balance: $30,000

Starting Age: 31 years old

Monthly Salary: $6,500

Annual Interest Rate: Assuming a 4% annual interest rate compounded over time

Desired CPF Balance at age 65: To be determined
To calculate the CPF balance at age 65, including the initial balance of $30,000, you can use the future value formula:

FV = Initial Balance * (1 + r)^n + P * [(1 + r)^n - 1] / r

Where:

FV is the future value (the CPF balance at age 65)
Initial Balance is the starting CPF balance ($30,000)
P is the periodic contribution ($6,500 per month)
r is the periodic interest rate (4% annually, so 0.04/12 per month)
n is the number of periods (in months) until age 65 (34 years or 408 months)

Now he is 31 years old.....



Now, plug in the values and calculate:

$30,000 compound interest after 30 years

= $30,000 * (1 + 0.04/1)^(1*30)

= $30,000 * (1.04)^30

≈ $71,368.79




FV = $ 71368.70 + [ (1 + 0.04/12)^(34*12) + $6,500 * [(1 + 0.04/12)^(34*12) - 1] / (0.04/12) ]

= 5.7018 millions



One of my friend



Fu yoh...



When he reach age 50,

$30,000 * (1 + 0.04/1)^(1*20)
= $ 65,733.70






FV=

$ 65,733.70 +

[ (1 + 0.04/12)^228 + $6,500 * [(1 + 0.04/12)^228 - 1] / (0.04/12)] ]


= 2.28 millions

This post has been edited by plouffle0789: Nov 2 2023, 11:33 AM

adakah aku kesah

SG life expectancy 85 yrs

to reach 20M65, just need any one of following

100k by 45 + annual return rate of 31%
1m by 45 with 16% rate of return
100k by 35 + 20% annual return rate
100k by 25 + 14.2% annual return rate
100k by 25 + 100k annual savings rate + 6.8% annual return rate

The last emphasises the importance of a good job+ prudent expenditure

6.5k epf a month? Someone already mentioned salary epf contribution capped at 6k sgd right? Anyway cpf calculation is indeed much complex compared to our kwsp.

If Singapore cap it at sgd 6k for cpf contribution how you get sgd 2.94k? Your calculation full of mistakes la.

Under the Ordinary Wages component, which is typically our monthly salary, the CPF contribution ceiling is capped at $6,000 per month.
This means only the first $6,000 of our monthly salaries require CPF contributions from us and our employers.
If we earn more, any amounts above the first $6,000 will not attract any employer or employee CPF contributions.
The CPF monthly salary ceiling will increase to $8,000 in 2026



(

in

Sep 2023: $6,300;
Jan 2024: $6,800;
Jan 2025: $7,400; and
Jan 2026: $8,000).


Now already 6300...

2 months later is 6,800 lor

2025 january is 7400....


Please look carefully.


So now you can show calculation how you get 9.5 millions?


This post has been edited by plouffle0789: Nov 2 2023, 04:26 PM

Under the Ordinary Wages component, which is typically our monthly salary, the CPF contribution ceiling is capped at $6,000 per month.
This means only the first $6,000 of our monthly salaries require CPF contributions from us and our employers.
If we earn more, any amounts above the first $6,000 will not attract any employer or employee CPF contributions.
The CPF monthly salary ceiling will increase to $8,000 in 2026



(

in

Sep 2023: $6,300;
Jan 2024: $6,800;
Jan 2025: $7,400; and
Jan 2026: $8,000).


Now already 6300...

2 months later is 6,800 lor

2025 january is 7400....


Please look carefully.

So you upfront straight take 8k but then again full of flaws. U need to calculate the cap or principal up to 55.. 55 - 60 will be 29.5% Contribution 60 to 65 is only 20.5% Contribution. Also 4% it only happened recent right? As i recall cpf always hover below 3%.

That's why cpf is just pain in the ass to calculate. If not mistaken by age group the dividend is different as well right?