CPF’s New Non-public Retirement Source of revenue Planner Tells Me I Secured a $1,430 to $1,770 Actual Per 30 days Source of revenue to Effectively Duvet My Maximum Vital Retirement Way of life


After my submit exploring if I controlled to effectively protected a $1,110 per 30 days, inflation-adjusted source of revenue movement these days after I reached CPF FRS, I used to be knowledgeable that there’s a new CPF Retirement Source of revenue calculator for more youthful CPF participants.

This calculator lets you assess your present CPF SA monies and your long run source of revenue contributions, how a lot source of revenue you’ll have at 65 years outdated, and what’s the shortfall you want to top-up to succeed in your required source of revenue.

How useful is that this calculator?

It a great deal assist what I used to be seeking to do within the remaining article.

It may well additionally assist in case you are a monetary planner seeking to calculate how a lot retirement source of revenue your shopper may have with CPF LIFE.

Allow us to pass during the calculator.

CPF Retirement Source of revenue Planner

To create a customized retirement source of revenue plan, pass to this CPF Website.

It is very important log in to CPF the use of your SingPass.

You’ll solely use this calculator in case you are more youthful than 55. My colleague Choong Hwee, who’s older than 60, logged in however can not use it.

Navigating the Retirement Source of revenue Planner

Originally, I’ve about $208,000 these days in my CPF SA. You are going to understand later that the calculator supplies the determine in response to your CPF SA.

You’ll get started fascinated by your required retirement way of life and what kind of that way of life will price these days.

On this instance, I put $1000 a month. The slider doesn’t paintings neatly, so I key in. The notes let us know that the common core inflation price over two decades is underneath 2%.

The two% inflation is the velocity the retirement calculator assumes. You can not be able of the use of the next however extra conservative inflation price.

In case you click on on Think about inflation button, you are going to see the next:

The calculator instantly tells me that at 65 years outdated, $1,580 a month is similar to $1,000 a month these days, with inflation at 2% every year.

I would like $293,000 in my CPF Retirement Account at 65 years outdated to obtain $1,580 a month for existence, or $293,000 to retain my $1,000 per 30 days buying energy these days.

Click on Subsequent.

At the subsequent display screen, you’ll specify your per 30 days wage, bonus and the projected wage increment:

I don’t wish to specify further wage as a result of I’m to grasp the buying energy of my present CPF SA account.

There is not any approach not to put any per 30 days wage. I’ve to position $1 in order that I will be able to click on Mission payout. There may be no strategy to specify how lengthy you make a decision to paintings.

Whilst you click on on Mission payout, you are going to get the next:

Per 30 days payouts inform me that the utmost projected payout at 65 years outdated for me is $2,740 per 30 days. It exceeds my goal of $1,580 per 30 days.

Which means my CPF SA these days permits me the next actual source of revenue these days at 43 years outdated.

I should select CPF LIFE Usual Plan for this $2,740 per 30 days source of revenue (see assumptions underneath).

In case you click on on Projected financial savings, it tells me that my present $208,669 will turn out to be $519,000 in my CPF Retirement Source of revenue at 65 years outdated. The speed of go back is surprisingly solely 2.63% every year.

The remaining web page presentations you the way a lot you’ll top-up your CPF SA to succeed in your function. This isn’t too helpful.

Listed below are the assumptions and explanations CPF construct into the calculator:

Environment Retirement Source of revenue Function

  • The preliminary retirement source of revenue function decided on by way of you is expressed in these days’s greenbacks.
  • A 2% inflation price is carried out to the preliminary retirement source of revenue function to compute your payout function at age 65.
  • According to the belief that the entire financial savings quantity will also be dedicated to CPF LIFE, your financial savings function at age 65 is computed by way of deriving the volume of annuitised financial savings wanted to reach your payout function at age 65 thru a CPF LIFE Usual Plan coverage.
  • Within the retirement source of revenue information, retirement way of life alternatives equipped are in response to expenditure pieces from the Family Expenditure Survey 2017/18.


  • Projections are in response to the salary-related main points you equipped. Those main points will probably be saved for long run projections, and can stay unchanged till you edit them during the planner. If you don’t supply present and correct data, the projections will not be appropriate on your use.
  • Projections will get started from the present month, and finish when you’re projected to succeed in age 65.
  • Projections suppose that you just stay hired all through the projection duration.
  • Handiest Particular Account (SA) and Retirement Account (RA) balances are projected. The RA is made from SA balances solely when you’re projected to succeed in age 55.
  • Preliminary SA balances used for projections are in response to your newest to be had SA balances.
  • SA contribution charges are in response to the ones for personal sector workers and executive non-pensionable workers.
  • Contributions on per 30 days wage are capped at a wage ceiling of $6,000.
  • Contributions on further wage (e.g. bonus) are paid yearly each and every December, and are capped on the Further Salary Ceiling in response to the belief that you just solely have one employer.
  • Annual increments are assumed to be consistent over the projection duration, and carried out on the finish of each and every December.
  • SA and RA balances earn 4% in line with annum passion over the projection duration. The primary $60,000 of balances earn an additional 1% in line with annum passion. After age 55, the primary $30,000 of balances earn an extra additional 1% in line with annum passion.
  • CPF passion is calculated per 30 days, however credited and compounded yearly on the finish of December.
  • Projected financial savings are in response to overall SA and RA balances you’re projected to have at age 65.
  • Projected payouts are in response to the belief that each one projected financial savings will also be dedicated to CPF LIFE.

Simulating Best-ups or Transfers

  • Simulations of top-ups or transfers are topic to CPF top-up limits. To undertaking top-up limits, a three.5% expansion price is carried out to the Present Complete Retirement Sum and Present Enhanced Retirement Sum.
  • Best-ups and transfers simulated will take impact one month after the projections start.
  • Simulating a routine top-up will take where of any current routine top-up you may have. Simulated routine top-ups will proceed till you’re projected to succeed in age 65.

If My CPF SA Has $208,000, How A lot Actual Source of revenue Have I Secured Nowadays?

This used to be the query I needed to unravel after I wrote my weblog submit right here.

To seek out that out, we can want to do a little opposite engineering.

We all know that at 65, the best possible per 30 days projected payout is $2,740. We will use 2% a yr inflation price and determine to be $1,770 per 30 days.

My $208k these days will develop to $519k to supply a real source of revenue of $1,770 per 30 days.

You’ll validate this by way of redoing the CPF retirement calculator once more:

I key in a determine $1,730 a month, which is on the subject of $1,770 a month and will get on the subject of $2,730 a month.

You’ll see that the payout function is nearly on the subject of the projected per 30 days payout.

If the inflation price is two% a yr, the inflation-adjusted way of life I organize to protected these days is $1,770 a month.

What if I Need to be extra Conservative With My Provide Actual Source of revenue Estimation?

We all know that at 65, my $208,000 these days will give me an source of revenue of about $2,740 per 30 days.

We will use a Time Worth of Cash Calculator akin to this to calculate the true source of revenue if we use a extra conservative 3% every year inflation.

With 3% every year inflation, the true source of revenue that my $208,000 CPF SA controlled to protected is $1,430 per 30 days as an alternative of $1,770 per 30 days.

If my partner (if I’ve one) has kind of the similar in CPF SA, I will be able to organize to protected an source of revenue of $2,860 per 30 days.

$1,430 per 30 days is upper than the $1,110 per 30 days estimated in my earlier article.

How A lot of My Desired Way of life May also be Squeezed into $1,430 a month?

Common readers of Funding Moats would possibly take note no longer way back, I map out the bills which might be maximum necessary for me to protected. You’ll learn What More or less Way of life Am I Purchasing – Phase 1 of My Purchasing My Monetary Safety Collection.

In these days’s greenbacks, I would like $797 per 30 days to present me a mentally adequate way of life and this will also be lined by way of $1,430 per 30 days.

We will body the surplus CPF LIFE source of revenue above $797 per 30 days in two tactics:

  1. The CPF LIFE source of revenue pays for extra line pieces of bills.
  2. I will be able to have inflation-adjusted source of revenue from 65 until about 90 years outdated.

Each framings turns out to be useful and it provides assurance that I would possibly have secured my maximum crucial, and rigid way of life.

Estimating the Most Retirement Source of revenue of Your Shoppers at 65 Years Previous

This calculator can assist a monetary planner decide how a lot retirement source of revenue can come from CPF LIFE.

You’ll ask your prospect or purchasers to click on at the hyperlink above, login with their SingPass and input their wage.

You’ll ask them to forget about the Set your function. Input the rest to continue to Mission your payout.

Input their wage, and the calculator will calculate, with the source of revenue, what’s their projected per 30 days payout at 65. On this case, the source of revenue is $4,310 a month.

She or he could have accrued $825,000.

You’ll then see how a lot more source of revenue over $4,310 a month your shopper wishes that must be supported by way of their funding portfolio.


If you’re for your accumulation section, do put for your source of revenue and spot what sort of retirement source of revenue you’ll get when you’re 65 years outdated.

I feel this calculator whilst no longer best, assist you to and shopper advisers estimate their retirement source of revenue.

What do you call to mind the calculator?

If you wish to business those shares I discussed, you’ll open an account with Interactive Agents. Interactive Agents is the main cheap and environment friendly dealer I take advantage of and consider to speculate & business my holdings in Singapore, america, London Inventory Trade and Hong Kong Inventory Trade. They let you business shares, ETFs, choices, futures, foreign exchange, bonds and finances international from a unmarried built-in account.

You’ll learn extra about my ideas about Interactive Agents in this Interactive Agents Deep Dive Collection, beginning with how you can create & fund your Interactive Agents account simply.



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