How Much CPF Savings Should You Have At Every Age Group
There’s been a viral graphic going around recently social media recently, depicting the total amount of CPF balances Singaporeans and PRs have in their CPF accounts. While it’s only just gained virality, this information isn’t new. In fact, the CPF Board has been publishing it for a number of years.
Source: CPF Annual Report 2019
The first thing we noticed is that CPF members have a total of $676.5 billion in our CPF accounts (as of 2019). Compared 5 years ago (in CPF Annual Report 2014), this number has nearly doubled from $373.3 billion.
Another thing to note when looking at these figures is that they are based on “regrossed balances”, which means it includes amounts withdrawn under various CPF schemes, including Investments, Education, Residential Properties, Non-Residential Properties, and Public Housing Schemes.
We were also wondering how “Non-Residential Properties” got in there and learned that this scheme for using CPF funds for non-residential properties ended on 1 July 2006. Some CPF members are still servicing their Non-Residential property loan with their CPF.
From the statistics, we can also discern that there are at least 10 between the age group of 25 to 30 with $500,000 and more in their CPF accounts already. These people are on track to have $10 million in their CPF accounts by the time they retire.
How Much CPF Savings Should You Have, Based On Your Age
Another interesting statistic we can learn from these figures is how well or badly we are faring compared to our peers when it comes to accumulating CPF savings.
We saw a similar chart on social media, but could not verify its source or inputs, so we decided to reproduce a similar calculation on our own (from the table in the CPF annual report 2019 above). Here’s how much CPF savings we should have in every age group.
Looking at the 50th percentile, we can see the median CPF savings that peers in our age group have accumulated:
|Age Group We Are In||Median CPF Savings Range|
|0 to 20||Below $20,000|
|>20 to 25||Below $20,000|
|>25 to 30||$40,000 to below $60,000|
|>30 to 35||$120,000 to below $140,000|
|>35 to 40||$180,000 to below $200,000|
|>40 to 45||$220,000 to below $240,000|
|>45 to 50||$260,000 to below $280,000|
|>50 to 55||$220,000 to below $240,000|
|>55 to 60||$180,000 to $200,000|
|>60 to 65||$140,000 to $160,000|
|>65 to 70||$100,000 to $120,000|
|>70 to 75||$60,000 to $80,000|
|>75 to 80||$20,000 to $40,000|
Looking at the chart, we can see that total CPF savings tend to increase as one ages, right up to when a CPF member turns 50. Then, CPF savings look like they decrease. One reason for this may be that older Singaporeans and PRs did not benefit from contributing as much into their CPF accounts in the earlier days.
Another reason may be that once a person turns 55, he or she may draw down their CPF balances. At 65, CPF savings are also contributed into CPF LIFE or start getting drawn down. This may contribute to a steeper drop in median CPF savings at older age groups.
Don’t Fret If You Don’t See The Median Range In Your CPF Account
If we don’t have the median amount saved in our CPF accounts at a particular age group, there’s no reason to start panicking. This is not a race to save the most amount of CPF balances.
As it is a median range, approximately 50% of people will have more in the median range and another 50% of median will have less CPF savings than the median range.
Your takeaway is that you’re in the bottom (or top) 50% and you can still work towards accumulating more CPF savings if you think it’s valuable through the Retirement Sum Topping Up (RSTU) scheme.
Another reason why we may not see the median range in our CPF accounts is that this range includes amounts that have been used via the various CPF schemes mentioned above: Investments, Education, Residential Properties, Non-Residential Properties, and Public Housing Schemes. We should add these up for our personal calculations.
Finally, we should just use this as additional information for what our peers may have, rather than stress up or take things easier thinking we are below or above the median level. We can always do more for our retirement security, and we should be concerned with our personal retirement goals.
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