Aries Kee Heng Bin, IBFQ’s Post

In my previous post, I mentioned the three retirement sums, Basic Retirement Sum (BRS), Full Retirement Sum (FRS), and Enhanced Retirement Sum (ERS). So what are these retirement sums and how would they determine our monthly payouts under CPF Life? At age 55, our Retirement Account (RA) will be created which will replace our Special Account in 2025, funded by our SA and Ordinary Account (OA) up to Full Retirement Sum (FRS). The three retirement sums, serves as a reference on how much you need to save to meet your desired retirement monthly payouts. These reference sums will increase yearly, at about 3% each year, to catch out with inflation and expenditure growth. Basic Retirement Sum (BRS) BRS considers your property as part of your retirement income. Currently in 2024, those who turn 55, their BRS is $102,900, which means that their lifelong monthly payout will be about $900, when you turn 65. As BRS accounts for our property, if we decide not to sell our property, we will have to adapt to a less comfortable lifestyle. Full Retirement Sum (FRS) = BRS x 2 FRS is currently about twice as much as BRS, this is the limit that is automatically put into RA, when you turn 55. Currently, the FRS is $205,800, which means that the lifelong monthly payout will be $1,670, when you turn 65. Enhanced Retirement Sum (ERS) = BRS x 3 ERS is slightly different to BRS and FRS, as it represents the upper limit of how much we can top up our RA after age 55. Currently, ERS is set at three times more than BRS, it will be increasing to four times more in 2025. There are plus points of meeting the ERS, which is that you will be able to get higher monthly payouts of $2,450 when you turn 65, and for those who meet the new ERS in 2025, will have an estimate of $3,330 of monthly payouts when you turn 65. Do you think these monthly payouts are sufficient for your desired retirement lifestyle? Share with me your thoughts on how you can achieve your desired retirement! https://lnkd.in/ggjYT7-q

CPF: BRS, FRS, ERS - Why There Are 3 CPF Retirement Sums & Why They Increase Every Year? 🤔 What's Happening? When Singaporeans turn 55, they can start withdrawing from their CPF accounts. Understanding the CPF Retirement Sums is crucial as they determine the amount available for withdrawal and retirement payouts. For 2024, the Basic Retirement Sum (BRS) is $102,900, the Full Retirement Sum (FRS) is $205,800, and the Enhanced Retirement Sum (ERS) is $308,700. Here’s why these sums exist and why they increase annually. Key Details: 1. CPF Retirement Sum Activation at Age 55 🎂 - At 55, a CPF Retirement Account (RA) is created, funded by the Special Account (SA) and Ordinary Account (OA), up to the FRS. The RA continues to earn interest until funds are moved to CPF Life at age 65, with payouts starting at 65 or delayed until 70. 2. Purpose of the 3 Retirement Sums 📊 - The three sums ensure adequate retirement savings: - BRS: $102,900 for 2024, suitable for those pledging property, provides a lower monthly payout. - FRS: $205,800 for 2024, a standard target for retirement savings. - ERS: $308,700 for 2024, for higher monthly payouts, without property pledge. 3. Annual Increase in Retirement Sums 📈 - The sums increase yearly to account for inflation and rising living costs, ensuring retirement savings remain sufficient. 4. Monthly Payout Estimates for 2024 💵 - BRS: Approximately $900/month. - FRS: Approximately $1,670/month. - ERS: Approximately $2,450/month. What It Means for You: 1. Property Pledging Benefits 🏡 - By pledging property, you can withdraw more from CPF, but expect lower monthly payouts (BRS level). 2. Planning for Adequate Retirement Income 💡 - Meeting or exceeding FRS or ERS ensures higher monthly payouts, promoting a more comfortable retirement lifestyle. 3. Continuous Monitoring 🕵️♂️ - Stay updated with annual increases to adjust your retirement planning accordingly. How I Can Help as a CFP: Navigating CPF Retirement Sums can be complex. As a Certified Financial Planner, I can assist you in understanding these sums and planning effectively for your retirement. Contact me for personalized advice to ensure a secure and comfortable retirement. 🌟 Daniel Tay CFP, IBFA #RetirementPlanning #CPF #FinancialSecurity #SingaporeRetirement https://lnkd.in/gMM8XjYs

Retirement may seem very far for many of us, but do you know where our retirement sum comes from? CPF is one of the sources where we get our retirement income from. CPF Life is a national longevity insurance annuity scheme that provides you with regular monthly payouts no matter how long you live, so you can enjoy your desired retirement lifestyle without worry. There are three plans to choose under CPF Life, Escalating plan, Standard plan and Basic plan. Your monthly payout amount will depend on which plan you choose. For Escalating plan, your monthly payout will start out lower and increase by 2% a year for life, this is to help you maintain your desired retirement lifestyle even when price increases over the years. For Standard plan, your monthly payout will be fixed amount without any increase, which some may prefer a fixed budget, however, the payouts does not protect you against inflation. For Basic plan, payouts starts low and progressively falls as your CPF balances fall below $60,000. At 55 years old, a CPF Retirement Account (RA) will be created, which will replace the Special Account (SA), the amount in RA is funded by amounts in SA and Ordinary Account up till the Full Retirement Sum (FRS). The amount will continue to earn interest until it is put into CPF Life, at 65 years old. The RA Savings amount will determine the amount for monthly payouts. To ensure that Singaporeans save enough for retirement, there are 3 threshold targets: Basic Retirement Sum (BRS), Full Retirement Sum (FRS), and Enhanced Retirement Sum (ERS). To find out more about retirement planning, feel free to contact me. https://lnkd.in/g8zcSTht

[𝗠𝗮𝗸𝗲 𝘁𝗵𝗶𝘀 𝘁𝗵𝗲 𝘆𝗲𝗮𝗿 𝘆𝗼𝘂 𝗳𝗶𝗻𝗮𝗹𝗹𝘆 𝘁𝗮𝗸𝗲 𝗰𝗼𝗻𝘁𝗿𝗼𝗹 𝗼𝗳 𝘆𝗼𝘂𝗿 𝗿𝗲𝘁𝗶𝗿𝗲𝗺𝗲𝗻𝘁!] Christmas and the new year are perfect opportunities to pause and reflect... They give you a chance to take stock, revisit your goals, and identify those lingering items on your to-do list that haven’t been ticked off yet. For many, one recurring goal is: “𝙏𝙝𝙞𝙨 𝙮𝙚𝙖𝙧, 𝙄’𝙡𝙡 𝙛𝙞𝙣𝙖𝙡𝙡𝙮 𝙜𝙚𝙩 𝙤𝙣 𝙩𝙤𝙥 𝙤𝙛 𝙢𝙮 𝙨𝙪𝙥𝙚𝙧𝙖𝙣𝙣𝙪𝙖𝙩𝙞𝙤𝙣 𝙖𝙣𝙙 𝙧𝙚𝙩𝙞𝙧𝙚𝙢𝙚𝙣𝙩.” But without a clear plan, the same challenges keep coming up: No clear direction or plan for retirement, just hoping your super will somehow be enough… Super fees quietly chipping away at your nest egg - often fees you didn’t even realise you were paying…. Investment strategies falling short of expectations, leaving you far from the retirement lifestyle you dreamed of. If this resonates with you, you’re certainly not the only one. But the good news is, you don’t have to leave your future to chance. 𝗪𝗵𝘆 𝘀𝘂𝗽𝗲𝗿 𝗳𝗲𝗲𝘀 𝗺𝗮𝘁𝘁𝗲𝗿: One of the first things we talk about with clients is understanding their superannuation fees. Why? Because it’s your money, and every bit counts. Did you know that just a 1% difference in fees could cost you thousands – even hundreds of thousands – over the course of a few decades? And yet, many super funds make it difficult to know exactly what you’re paying for. Here’s what you need to do: 𝗖𝗵𝗲𝗰𝗸 𝘆𝗼𝘂𝗿 𝗳𝗲𝗲𝘀 – Transparency is key. Know what you’re paying and why. 𝗗𝗲𝘁𝗲𝗿𝗺𝗶𝗻𝗲 𝘃𝗮𝗹𝘂𝗲 – Are the fees sensible? Is the service worth the cost? 𝗧𝗮𝗸𝗲 𝗮𝗰𝘁𝗶𝗼𝗻 – If the fees don’t make sense, it’s time to explore better options. Fees themselves aren’t the problem – it’s about ensuring they are fair, transparent, and aligned with your goals. 𝗬𝗼𝘂𝗿 𝗻𝗲𝘅𝘁 𝘀𝘁𝗲𝗽 If you’re ready to take control of your super and retirement plans, the next step is simple. Join me for a free 𝟭𝟱-𝗺𝗶𝗻𝘂𝘁𝗲 𝗦𝗼𝗿𝘁 𝗠𝘆 𝗦𝘂𝗽𝗲𝗿 call to discuss your superannuation and retirement strategies. No pitch, no pressure – just practical advice to help you make the most of your money and secure the future you deserve. I designed this specifically for individuals like you – professionals and business owners, ore-retirees who want to fast-track their retirement, take advantage of tax efficiencies, and finally have a clear plan for their financial future. Click the link in the comments to schedule your call and let’s make 2025 the year of financial control and confidence. Norma

Dollar Cost Ravaging – Will You Run Out of Money During Retirement? - https://lnkd.in/gjGNMKHr Dollar Cost Ravaging – Will You Run Out of Money During Retirement?For those that don’t know me, my name is Dave Gilliland, and I am a Certified Specialist with The Corporation of Social Security Claiming Strategies. I am now in my 49th year in the insurance and financial industry. I’ve helped hundreds of clients maximize their retirement plans, and at the same time avoid market risk while still providing above average returns on their retirement savings. How do I do that? With a special investment plan that is linked to the stock market. Let’s be clear. Your returns are linked to market earnings, but your investment is not in the market subject to the ups and downs that the market has subjected investor to for years.To say it another way”“When the market goes up     We Credit you a gainWhen the market does down     You remain the same”In this article, we want to explore something called “Dollar Cost Ravaging.”  What is Dollar Cost Ravaging? To understand this, you first must understand something called “Dollar Cost Averaging.”  What’s the difference?Dollar Cost Averaging says, while working and contributing to your retirement plan, it really doesn’t matter whether the market is up or down. Why? Because if the market is down, your new contributions will buy more shares. And when the market comes back up (and it always has) you should be ok.Dollar Cost Ravaging, on the other hand, is quite different. Why? Because there are no new contributions being made into the plan and one needs to answer the question “how do you take money out of the stock market during retirement?"The only way to take money out of an investment plan invested in the market is by selling “share.”  See, regardless of how much your quarterly statement says you have in your account, it is a calculation based upon number of share you have multiplied by the “share price.”  In actual dollars and cents, you have none and the money that you can ultimately receive from the plan is dependent on the price of the shares you hold at the time you sell those shares.I have produced a video covering all of this as well as an alternative we refer to as an Offset/Index plan. In this video I show you how it is possible to run out of money 14 years into retirement if invested in the market, even though your shares were worth $1 Million at retirement. Additionally, we show you what “our plan” (offset/index plan) would look like during retirement.In our illustrations, we show a 5% safe withdrawal rate on both the stock market plan and Offset/Index plan. While the stock market runs out of money in the 14th year in this hypothetical illustration, the offset/index plan not only continues to have money in the plan all year but we show you how it can provide nearly 400% when you add

Ever found yourself daydreaming about the perfect retirement? Let me take you through a scenario that might hit close to home. You’ve spent decades pouring your heart and soul into your career, diligently saving for the golden years ahead. Retirement finally arrives, but with it comes a nagging concern – will my savings last? Many retirees face uncertainty about how much they can safely withdraw from their nest egg each year without the fear of running out of money prematurely. This is where understanding the concept of the Safe Withdrawal Rate (SWR) becomes crucial. So, what exactly is the Safe Withdrawal Rate, and how can it help you secure your retirement? Let’s break it down. The SWR is the percentage of your retirement savings you can withdraw each year, adjusted for inflation, while ensuring that your money lasts throughout your retirement years. While the ideal SWR can vary depending on factors like investment allocation, market conditions, and retirement duration, a commonly recommended rate is around 4%. However some studies have shown that considering Indian conditions we should stick to a safe withdrawal rate of 3%. This means that if you have  ₹ 1 Crore saved for retirement, you could withdraw ₹ 3,00,000 annually to maintain a sustainable income stream. Let’s take an example of Arun: Retirement Savings: ₹1,00,00,000 Safe Withdrawal Rate (SWR): 3% Annual Withdrawal: ₹1,00,00,000 * 0.03 = ₹ 3,00,000  Adjusted for Inflation: Considering a hypothetical inflation rate of 4%, the inflation-adjusted withdrawal would be: ₹ 3,00,000 * (1 + 0.04) = ₹ 3,12,000 This means Arun could withdraw approximately ₹ 3,12,000 annually from his retirement savings to maintain his purchasing power over time. However, this amount will thus need to increase every year by the inflation rate of 4%, as a person cannot sustain on the same amount of ₹ 3,12,000 year after year. But blindly adhering to a fixed SWR without considering individual circumstances can be risky. Factors like unexpected expenses, healthcare costs, and market fluctuations can all impact your retirement funds. That’s why it’s essential to periodically reassess your withdrawal strategy and adjust as needed to ensure financial security in retirement. Now, imagine you’re a founder with a team of dedicated employees who have been instrumental in building your company from the ground up. As you reflect on the future, you realise the importance of offering them more than just a paycheck – you want to empower them to enjoy a fulfilling retirement. That’s where I come in. Are you ready to take the leap and provide your employees with the tools they need to navigate their financial journey confidently? As a finance coach, I specialise in helping individuals and organisations alike understand the intricacies of retirement planning and financial management. Reach out to me Parag Vyavahare Mail id: [email protected] Mobile number: 9821604824 #financecoach #swr

SIP + SWP: A Smart Retirement Strategy Combining Systematic Investment Plans (SIP) and Systematic Withdrawal Plans (SWP) can help you build a significant corpus and generate regular income for a stress-free retirement. Let’s break it down: Phase 1: SIP (Building Your Corpus) What is SIP? SIP allows you to invest small amounts regularly in mutual funds. With time and compounding, it can grow into a large retirement corpus. Example 1: Regular SIP Monthly SIP: ₹10,000 Duration: 25 years Expected Return: 12% annualized Results: Total Investment: ₹30 lakh Capital Gains: ₹1.90 crore Corpus Built: ₹2.20 crore Example 2: Step-Up SIP (10% Annual Increase) Starting SIP: ₹10,000 per month (increasing by 10% annually) Duration: 25 years Expected Return: 12% annualized Results: Total Investment: ₹95.6 lakh Capital Gains: ₹5.68 crore Corpus Built: ₹6.63 crore Phase 2: SWP (Generating Retirement Income) What is SWP? SWP allows you to withdraw from your corpus in fixed, regular amounts. The remaining corpus continues to grow, ensuring long-term financial stability. Example 1: Regular SIP → SWP Corpus Used: ₹2.20 crore SWP Rate: 8% annualized Monthly Withdrawal: ₹1.5 lakh Duration: 25 years Results: Total Withdrawn: ₹4.50 crore Balance Left: ₹1.28 crore Example 2: Step-Up SIP → SWP Corpus Used: ₹6.63 crore SWP Rate: 8% annualized Monthly Withdrawal: ₹4.5 lakh Duration: 25 years Results: Total Withdrawn: ₹13.50 crore Balance Left: ₹3.84 crore Key Takeaways Start Early: SIPs take advantage of compounding to grow your wealth over decades. Step-Up Advantage: A 10% annual increase in SIP dramatically boosts the retirement corpus and your SWP income. Sustainable Income: SWP ensures regular income while preserving wealth for future needs or legacy. Flexibility: SIPs and SWPs can be customized based on your financial goals. 💡 Pro Tip: Start SIPs early and step them up annually to maximize your retirement income. The SIP + SWP combination can help you achieve a comfortable and financially secure retirement. Disclaimer: These calculations are for illustration. Consult a financial advisor for a tailored plan. #RetirementPlanning #SIP #SWP #FinancialFreedom #WealthCreation #PowerOfCompounding #InvestSmart #FinancialGoals #SecureFuture #StepUpSIP #SmartInvesting #MoneyManagement #MutualFunds #InvestEarly #PersonalFinance #RetireRich #HarshithTalks

Power Up Your Retirement Plan with CedisPay’s Retirement Savings Tracker & Retirement Needs Calculator! Achieving your dream retirement requires both planning and tracking—and with CedisPay’s Retirement Savings Tracker and Retirement Needs Calculator working together, you’ll have everything you need to stay on track! Here’s Why These Tools Are Essential Together:  Step 1: Plan Your Needs with the Retirement Needs Calculator The Retirement Needs Calculator helps you estimate how much you’ll need to save based on your lifestyle, projected expenses, and years to retirement. It gives you a clear retirement goal to work toward!  Step 2: Track Your Progress with the Retirement Savings Tracker Once you know your target amount, use the Retirement Savings Tracker to monitor your monthly contributions, see your progress toward your goal, and stay motivated with real-time updates. Benefits of Using Both: Clarity on Your Financial Path: Know exactly how much you need to save and where you stand. Personalized Targets & Adjustments: Adjust contributions as you track progress, making it easy to stay on course. Confidence in Your Future: Get peace of mind by knowing you’re on track for a comfortable retirement. Start planning and tracking today on CedisPay, and let’s make your retirement goals a reality! Try it out: CedisPay’s Retirement Savings Tracker  and Retirement Needs Calculator at https://lnkd.in/g94mERJe #RetirementReady #FinancialPlanning #CedisPay #SecureYourFuture #StepByStep Join the CedisPay Community and build a stronger financial future - LinkedIn: https://lnkd.in/gENKNW2H - Facebook: https://lnkd.in/gCUe4RAg - Instagram: https://lnkd.in/g_vH95nh - Twitter: https://lnkd.in/gFYyvxYW Stay informed with expert insights: https://lnkd.in/gQ2_fiD5 https://lnkd.in/g_W5ES3D Visit our website today at https://cedispay.com.gh/ to apply for loans. Our team is available to assist you via: Phone: +233 244680960, +233 59 574 1614, +233 595741673 #CedisPay #RetirementPlanning #FinancialWellbeing #SavingsTracker #PlanForTheFuture #CedisPay #RetirementGoals #FinancialWellbeing #PlanAndTrack #FinancialEmpowerment

While the Canada Pension Plan is a cornerstone of retirement planning in Canada, it's not a complete solution on its own. 😮 To truly thrive in retirement, integrating CPP with strategic investments can amplify your financial security. Here's how to make the most out of your CPP: ➡️Delay Taking Benefits: Did you know that delaying your CPP benefits past the standard age of 65 can significantly increase your retirement income? For every year you wait, you can boost your CPP payment by 8.4%. Over five years, this results in a 42% increase in your annual pension. Patience really does pay off!!! ➡️Create a Powerful Income Duo: Pairing your CPP with well-managed investments can create a dynamic financial duo. This strategy leverages the reliable income from CPP with the growth potential from other investments, providing you with a more robust and diversified income stream in retirement. ➡️Leverage CPP as a Safety Net: The guaranteed nature of CPP payments provides a foundational layer of financial security. This allows you to potentially take calculated risks with other parts of your investment portfolio, which could lead to higher returns. Knowing you have a steady CPP income can give you the confidence to explore opportunities that have higher growth potentials. Remember, while CPP is a significant part of your retirement plan, it's most effective when integrated with a broader financial strategy. If you're looking to maximize your retirement income and ensure a stable financial future, consider how your CPP can work in concert with other investments.⭐️ Interested in crafting a comprehensive retirement strategy that includes CPP and more? Reach out today, and let's create a plan that fits YOUR unique retirement needs and goals.💬✨💼

🌟 Planning for a Comfortable Retirement: Essential Insights 🌟 Did you know? According to the Australian Superannuation Fund Association's (ASFA's) Retirement Standard, securing a comfortable retirement involves strategic financial planning. Singles aiming for a comfortable retirement should set their sights on accumulating $595,000 in savings by the time they reach 67. This substantial sum can generate a yearly income of $50,004, providing the financial stability needed to enjoy your golden years stress-free. And what about couples? ASFA recommends couples target a retirement savings goal of $690,000. With this amount, they can secure an annual income of $70,482, ensuring a comfortable and worry-free retirement together. These figures may seem daunting at first glance, however with proper planning and guidance, achieving your retirement goals is entirely within reach. Whether you're already on track or just beginning to consider your retirement strategy, it's never too early or too late to take proactive steps towards securing your financial future. 💡 Ready to take charge of your retirement planning? Let's connect and explore personalised strategies to help you reach your financial goals with confidence. Your dream retirement lifestyle awaits! Remember, the key to a fulfilling retirement lies in proactive planning and informed decision-making. Together, we can navigate the path to financial security and unlock the door to your ideal retirement lifestyle. ✨ If you find yourself short of the recommended amount, don't worry! I'm here to help you explore additional income-generating opportunities to supplement your retirement savings and your lifestyle money. Let's work together to create a brighter financial future for you. 💼