Member-only story
Retirement adequacy (or passive income) is one of four pillars for successful ageing — health, purpose, and experiences being the other three.
For most Singaporeans, our CPF will be the primary means via which we fund our retirement, housing, and healthcare needs. To ensure that our CPF is sufficient to meet our future needs, the government will introduce some changes in 2024.
Here are four important changes to note …. and adjust for.
1. Increase in the CPF Ordinary Wage Ceiling
Starting in September 2023, the Government will progressively increase the ordinary wage ceiling requiring CPF contribution. What this means is that those (aged 55 and below and earning more than $6,800) will now have to contribute $1,156 instead of $1,071. This will result in $85 less in take-home pay.
2. Higher Interest Rates for Retirement and Special Accounts
In response to higher interest rates, the Government will pay 4.08% interest for monies in our Retirement and Special/ MediSave Accounts. This is more than the…
