The road to financial security is a journey that can start from as early as your 20s. Here are some pointers to take note of at every stage of your life to ensure early planning puts you on track to enjoying your retirement years.
Your 20s: Students & First-Jobbers
As you prepare to enter the workforce and receive your first paycheck, it’s important to understand how your CPF contributions to your Ordinary Account, Special Account and Medisave Account can be used. Knowing this, as well as the varied interest rates for each account, can help you better plan your future finances. It’s never too early to prepare for not just a comfortable retirement, but good financial health in general.
Your 30s: Mid-Career
After working and saving for a number of years, you’re likely to buy your own house to settle in. Buying a house is a big financial commitment, but this amount can be supported with the use of CPF housing grants or loans. Do your research and find out which ones you are eligible for to help ease the cash outlay required in paying for your house.
Your 40s – 50s: Pre-Retirement
Your retirement years are fast approaching, and this is the time to keep a closer eye on your CPF accounts. Check your account balances and assess how prepared you are for your desired retirement.
Your Golden Years
Before you embark on your retirement, there’s one final order of business. Learn about the 3 different CPF LIFE plans – the Standard Plan, Basic Plan, and Escalating Plan – and opt for the one best suited to your needs. To find out the estimated payouts and bequests with different CPF LIFE Plans, try out the CPF LIFE Payout Estimator.
Information accurate as at 26/1/2018