Monday, July 10, 2017

Save for your retirement, but choose the right way

Every once in a while, you will see an attractive advertisement from a bank or life insurance company telling you about the importance of making separate savings for your retirement. They will explain that your savings in the Central Provident Fund is not adequate for your retirement needs.

They will back up the explanation with surveys, testimonials, statistics and other convincing information.
The underlying message is correct. Most people in Singapore need to have additional savings to live comfortably during retirement.

But the method that they proposed to achieve this goal is questionable.

Be careful. You can be walking into a trap. Read this.

1 comment:

Anonymous said...

The irony is that if most people do NOT use CPF to pay for housing, and instead max out their annual contributions to CPF, xfer from OA to SA, etc ..... the 3.5% to 5% compounded interests will enable them to retire quite comfortably in their late 50s and 60s.

The main problem is the govt's tendency to keep changing CPF rules.

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