Read? Reaching 55
How much is the Minimum Sum?
Setting aside the Minimum Sum (MS) when you reach 55 ensures that you have some regular income from age 65 to live on in your retirement.
The MS was set at $80,000 in 2003 and will be raised gradually until it reaches $120,000 (in 2003 dollars) in 2015. These amounts will be adjusted yearly for inflation.
If you are unable to set aside your full MS in cash, your property, bought with your CPF savings, will be automatically pledged for up to half of your MS.
CW8888's calculated inflation rate based on the above table for $115K in 2003 dollar value to the actual minimum sum required at 1 Jul 2013 of $148K is 2.6% annual compounded over 10 years.
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So we can use 3% inflation rate to estimate Retirement Income for Life.
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