minimum sum

Not surprisingly, the CPF min. sum has been raised. The amount now is $148K. I'm all for Medisave ceiling to be raised because $40K for medical is just not quite enough if you're not under any insurance.

Just last year, the CPF min. sum was at $139K. Assuming an increase of $10K per year, then probably by the time I reach retirement, *calculating using fingers etc*, maybe the minimum sum would be around $300K? Of course this is just fictional assumption. Min. sum is readjusted based on inflation, life expectancies and S'poreans rising expectations of their quality of life.

For annuity plans, an investment of $100K at age 55 would probably see a guaranteed monthly payout of about $500 for the next 25 years. So, probably if want to enjoy $2K per month payout, then possibly need to invest....$400K?

Hmm.. so if one would like to enjoy $2K per month quality of life, then perhaps the minimum sum would need to be at about half a million to sustain this expectation?

Read CNA article about CPF & Medisave minimum sums here.