The inflation rate for Singapore 2013 is announced as 2.4%

Source:

http://www.singstat.gov.sg/news/press_releases/cpidec2013.pdf

With the inflation amount released, I am now able to give my estimate for the CPF minimum sum for July 2013 like what I did last year.

"And the CPF mimimum sum for July 2014 will be...."

*** Drums roll ***

**$154800 !**

**How do I arrive at this number?**The CPF minimum sum changes every July and there are 2 factors that affect the CPF minimum sum:

1) inflation rate

2) the target of 120k (in 2003 dollars) that is to be reached in July 2015.

There are still 2 more years to hit the 120k (in 2003 dollars) target. If we spread out this increase evenly over the next 2 years, we will see an increase of 2500 in 2003 dollars each year.

With this, my calculation for July 2014 CPF minimum sum is as follows:

Estimated July 2014 CPF minimum sum

= 117500 / 115000 * 148000 * 1.024

= $154847

**= $154800 (rounded to nearest $100)**

I believe this is the more likely scenario.

**What if other targets for July 2014 is used?**If some other target (other than 117500) is used for Jul 2014, the minimum sum will be slightly different.

target of $117000

est min sum = 117000 / 115000 * 148000 * 1.024

= 154188

= $154200 (rounded to nearest $100)

target of $118000

est min sum = 118000 / 115000 * 148000 * 1.024

= 155506

= $155500 (rounded to nearest $100)

target of $120000

This scenario will mean that the target is brought forward by one year from 2015.

est min sum = 120000 / 115000 * 148000 * 1.024

= $158141

= $158100 (rounded to nearest $100)

The actual figures will be released some time in June. We shall see if the above estimates is correct then.

## 1 comment:

Thanks for the estimation. I needed that figure to see if I could continue to use CPF to pay off my flat without touching cash once I hit my VL.

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