Recently, there has been considerable angst generated by the increased of the CPF min sum to $155K. This is perfectly understandable as I believe(based on guts instinct) at least half of the cohort reaching 55 will not meet this min sum if you take into account of all the self-employed, under-employed, unemployed, retired etc.However, as a diy investor, I like to look at the compounding of the CPF min sum if one were to leave it untouched at 65,75 and 85 compounded by 4%.
At 65, it will be $229,437.86
At 75, it will be $339,624.09
At 85, it will be $502,726.61
If compounded by 5%,
At 65, it will be $252,478.67
At 75, it will be $411,261.14
At 85, it will be $669,901.07
Of course, whether there is actually money left in the kitty or the goalposts may have shifted again is a totally different question 10,20 or 30 years down the road for a newly reached 55 year old.
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