Sunday, December 23, 2012

Auto-accumulation of my retirement fund


As mentioned in my last post, I have accumulated enough money in my CPF account to pay off my housing loan.  This means that from next year onwards, my monthly CPF contribution will be in accumulation mode for my retirement fund.

Based on my age, 21% of my monthly wages will go to my OA account and 7% will go to my Special account. This means that as long as I am still working, 28% of my monthly wages will be automatically saved in my CPF account. And also, there are interests given in CPF account, which can create a compounding effect to grow my retirement money.

2 comments:

CreateWealth8888 said...

How much do you need for retirement fund?

Freedom Achiever said...

Hi CreateWealth8888,

Instead of looking at a lump sum, I am looking at $3000 per month for my expenses during retirement.

As more money will be accumulate in CPF account, interest from CPF can act as a form of passive income to supplement part of the $3000.

Regards,
Freedom Achiever

Have you started your journey towards financial freedom?

There was an error in this gadget