The inflation rate for Singapore 2012 is calculated to be 4.6%

The CPF minimum sum is targetted to reach $120k (in 2003 dollars) by Jul 2015. In Jul 2012, the minimum sum has hit 113k (in 2003 dollars) which is 139k.

**Based on this, how much will the minimum sum be Jul 2013?**

This will depend on the target (in 2003 dollars) that is set for Jul 2013. With 7k (in 2003 dollars) to reach in 3 years, we should expect of a target between 115k to 116k (in 2003 dollars)

Assuming, a target of 115k (in 2003 dollars), the minimum sum should work out to be:

115k / 113k * 139k * 1.046 = 147967 = 148000 (rounded)

Assuming, a target of 115.5k (in 2003 dollars), the minimum sum should work out to be:

115.5k / 113k * 139k * 1.046 = 148611 = 148600 (rounded)

Assuming, a target of 116k (in 2003 dollars), the minimum sum should work out to be:

116k / 113k * 139k * 1.046 = 149254 = 149300 (rounded)

** Rounding to nearest $100

With the above calculations,

**I would expect the minimum sum to be increased to a value between 148000 to 149500.**The 149500 will be hit if the 116k (in 2003 dollars) target is set and CPF board round the amount to the nearest $500.
If that happens, we will see an increase in CPF minimum sum of $10500. How many Singaporeans have even contributed this amount to the CPF OA and SA? With an inflation rate higher than the CPF-OA and SA interest of 2.5 and 4% respectively, many Singaporeans will find themselves further from the CPF minimum sum as higher targets are being set.

The actual figures will be released around end June. We shall see if my estimates are accurate then.

## No comments:

Post a Comment