With inflation hovering around 6%, my expectation is that it
will continue within the range of 4% to 6% in the next 10 years.
Interest rates currently pay you less than 1% a year.
Looking at the current retiring generation of folks in their 55s
to 60s. These 55s to 60s have a total of $14,768,999,000
distributed amongst themselves (262,641).
This works out to about $56,233 per each soon to be
sexagenarian.
How much do you think $56,233 will last these old folks if they
leave it in CPF to earn 2.5%, withdrawing $1,000 per month?
5 years!!! Provided that no chronic illness befalls them, else
it will be even shorter.
With inflation hovering around 4% - 6% in the future (my
guesstimate). Does the interest rates that CPF pay these old folks
even make up for the increase in cost of living? We are all making
negative interest rates.
Any chance of retirement for the average Joe Singaporeans?
Yes!!! But only in your wildest dreams!!!
Then dun be average lor ;D
