Sufficient savings for retirement

Hi,

I would also like your thoughts on the CPF Minimum Sum changes, as listed on the website: http://mycpf.cpf.gov.sg/CPF/News/News-Release/N_07Jun2007.htm

quote
This increase is in line with the announcements made in August 03 that the CPF MS will be raised gradually to reach $120,000 (in 2003 dollars) in 2013. The increase in MS, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement.
unquote

Do you think that 120,000 would be sufficient for retirement in 2013? I assume this amount will increase after 2013 too.

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REPLY:

The amount of $120,000 is intended to be the minimum sum that is applicable to every CPF member. It is calculated to be sufficient to meet the basic needs of the retiree.

The retiree can have additional savings to top up the minimum sum. You can read about my views in my FAQ on "financial planning for seniors" and "life annuity, which are posted in my website.