Rely solely on CPF for retirement??

How much do you have your your CPF account now?

Do you think it is enough for you to retire by relying solely on your CPF account at age 65??

"Those in the lower income group are especially at risk as their CPF will not provide sufficient savings for them in their retirement, and the situation is made worse by major withdrawals such as housing purchases", said Professor Hui Weng Tat, associate professor at the Lee Kuan Yew School of Public Policy.

Assuming that HDB purchases made at age 30 at the maximum price supportable by CPF contributions with two spouses contributing to mortgage payments, the income replacement ratio would drop to between 17 and 28 per cent for the different wage groups, at the retirement age of 65.

This would mean that a person with post secondary education earning $1,500 as his starting pay at 22 years old can only expect to live on 45 per cent of their last drawn pay when they retire. If only one spouse is working and repaying mortgage, the effect would be doubled.

So I would strongly advise everyone to do a proper financial planning and take up retirement savings plan to have a better retirement future. And the best age to start retirement savings is now, the earlier the better. Everyone can start when they just started working at age 25 after their university, and earn the power of compounding interest.

Source from Yahoo! Newsroom