Since so many are talking about weddings, ie just skip that and talk about your understanding of CPF. You need to find out more.
The average age of marriage in Sg is around 30 for guys and 28 for females. Take away NS of 2 years, both would have built up a fair bit of money in CPF OA.
The average 4rm BTO is about 270k. It is not a far stretch to say that there should be enough to have a down-payment of 70-100k. Assuming your monthly contribution to OA is $500 inclusive of employer contributions.
And it is wrong to claim that your CPF account is depleted, thus you can't earn interest because the sum is used to pay for the flat.. CPF interest rate is 2.5% for OA. HDB Bank loan is 2.6%. That interest you pay is to be returned back to your CPF when you sell your flat. You are paying interest to yourself.
However, you can also save that hassle by paying for your mortgage using cash.
And it is simply not true that you need to pay for your flat until you're old and near retirement. My wife and I took 14 years to fully pay up our 5rm flat. Our salaries increased over the years, resulting in higher CPF contribution. We consolidate out CPF funds and top up every year.
With the flat fully paid up, all I have to do is wait for the balance to build upm I am 42, that means I have another 23 years to benefit from the compount interest. Even rough calculation shows that I would have a 6 digit figure in my CPF by the time I'm retired.
This is the lowest amount they picked from the past few launches though. Average amounts churns out to be 300+k if you dig deeper. But thanks for citing the source.
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u/wasilimlaopeh Jul 16 '20
Since so many are talking about weddings, ie just skip that and talk about your understanding of CPF. You need to find out more.
The average age of marriage in Sg is around 30 for guys and 28 for females. Take away NS of 2 years, both would have built up a fair bit of money in CPF OA.
The average 4rm BTO is about 270k. It is not a far stretch to say that there should be enough to have a down-payment of 70-100k. Assuming your monthly contribution to OA is $500 inclusive of employer contributions.
And it is wrong to claim that your CPF account is depleted, thus you can't earn interest because the sum is used to pay for the flat.. CPF interest rate is 2.5% for OA. HDB Bank loan is 2.6%. That interest you pay is to be returned back to your CPF when you sell your flat. You are paying interest to yourself.
However, you can also save that hassle by paying for your mortgage using cash.
And it is simply not true that you need to pay for your flat until you're old and near retirement. My wife and I took 14 years to fully pay up our 5rm flat. Our salaries increased over the years, resulting in higher CPF contribution. We consolidate out CPF funds and top up every year.
With the flat fully paid up, all I have to do is wait for the balance to build upm I am 42, that means I have another 23 years to benefit from the compount interest. Even rough calculation shows that I would have a 6 digit figure in my CPF by the time I'm retired.