$$$ KPO and CZM $$$: Our CPF 2019

Monday, January 4, 2021

Our CPF 2019

I just realized that this article was in draft mode and partially completed while blogging on our CPF 2020 update. Here it goes, one year late. lol.


I was transferring OA to SA for higher interest once I started working and blogged about it here - CPF Milestone ($40k in Special Account) and The Power of Compound Interest. I stopped transferring and began to build up OA to prepare for our BTO HDB downpayment in 2018. There was a change in policy (HDB 想通了/achieved enlightenment. lol) and we can now keep up to $20,000 in OA. You can read about why we do not wish to wipe our OA here - Chiong Housing Loan or Take It Slow?

In 2019, we paid the remaining downpayment for our BTO, hence you can see a drop in OA. The plan now is to keep at least $20k in OA as a buffer in the event if we lose our job/income, we can still continue to pay off the housing loan for the next 2-3 years without any worry.

Interest received:
OA - $559.38
SA - $2,792.82
MA - $723.57

Total: $4,075.77


Interest received:
OA - $605.83
SA - $3,809.96
MA - $1,248.24

Total: $5,664.03

Together, we have received $9,739.80 :)

I have a spreadsheet that attempts to forecast CPF minimum sum and tracks how close/far are we to meeting/hitting the minimum sum. This is computed by adding OA and SA together (which forms RA when we hit 55). As of 2019, I have only met 48.84% based on the current minimum sum of $176,000 while CZM is at 64.50%. Long way to go before meeting FRS!

Something I like to do, assuming that CZM stopped working now and there will be $0 contribution to her CPF, will she be able to hit the minimum retirement sum? Using a finance calculator and her current SA of $86,811.57, the future value when we are 55 is $231,425.44. Pretty close to the lower bound of the estimation ($231,000 which is compounding the minimum sum at 1%). Guess CZM got to continue to work for a few more years. Hahahaha.

You might be interested in these blog posts too:
2017 Net Worth
Our CPF 2018

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