FRS by 35 and $1 million in CPF account.

Reader says...
I have been an avid reader of your blog and inspired by your way of handling the cpf monies.

I have followed certain methods and have done my own research on the cpf system.





I am 33 yr old now and have drafted a goal of hitting the current frs on my special account by 35.

There is a shortfall of 50k to frs and it shld be done in the next 2 years.

I have max out my ma.





I live a simple life and dun demand for luxuries.

And if i can be gainfully employed till age 55. I hope to also hit above 1mio for my cpf acct.






My concerns are as i am somewhere further away from retirement age, my risk of cpf policy changes are higher compare to urs.

AK says...
Welcome to my blog. :)

If there should be changes to the CPF system and there have been changes over the years, if they are reasonable, I welcome them.

We have to believe that the government have the interests of Singaporeans at heart and that they are competent.

If we don't believe this, then, shun the CPF.





As for your plan to take full advantage of your CPF membership, it sounds like a good one.

Keep at it and you would have a cornerstone in retirement funding in your golden years. :)





However, remember that the Top Up to your SA (allowed till age 55 and as long as it is lower than the prevailing FRS) will enjoy income tax relief only for the first $7K per calendar year.

As it sounds like you are topping up more than $7K per year in the next 2 years to hit the prevailing FRS, you want to be aware of this especially if income tax relief is important to you (i.e. you are in a high tax bracket).

Gambatte!





Related posts:
1. $1 million in CPF by age 65?
2. A cornerstone in retirement funding.