Every year, the CPF Board publishes the amount of CPF balances that its members have collected in their CPF accounts. It can be interesting to look at the balances to compare how we are doing when compared to the median statistics.
Source: CPF Annual Report 2020
The first thing we noticed is that CPF members have a total of $723.1 billion in our CPF accounts (as of 2020). This is 7% higher than last year.
Another thing to note when looking at these figures is that they are based on “regrossed balances”, which means it includes amounts withdrawn under various CPF schemes, including Investments, Education, Residential Properties, Non-Residential Properties, and Public Housing Schemes. Actual balances amount to $462.1 billion, which is about 9% higher than in 2019.
We were also wondering how “Non-Residential Properties” got in there and learned that this scheme for using CPF funds for non-residential properties ended on 1 July 2006. Some CPF members are still servicing their Non-Residential property loan with their CPF.
From the statistics, we can also discern that there are at least 10 members between the age group of 25 to 30 with $500,000 and more in their CPF accounts already. These people are on track to have $10 million in their CPF accounts by the time they retire.
How Much CPF Savings Should You Have, Based On Your Age
Another interesting statistic we can learn from these figures is how well or badly we are faring compared to our peers when it comes to accumulating CPF savings.
Based on the total number of 4,052,090 CPF members, with a combined regrossed balances of $723.1 billion, each CPF member should have $178,448 on average. This wouldn’t be a fair comparison though, as we would accumulate more CPF savings the older we get.
Here’s how much CPF savings we should have in every age group:
Looking at the 50th percentile, we can see the median CPF savings that peers in our age group have accumulated:
|Age Group We Are In||Median CPF Savings Range|
|0 to 20||Below $20,000|
|>20 to 25||Below $20,000|
|>25 to 30||$40,000 to below $60,000|
|>30 to 35||$120,000 to below $140,000|
|>35 to 40||$180,000 to below $200,000|
|>40 to 45||$240,000 to below $260,000|
|>45 to 50||$280,000 to below $300,000|
|>50 to 55||$240,000 to below $260,000|
|>55 to 60||$200,000 to $220,000|
|>60 to 65||$160,000 to $180,000|
|>65 to 70||$100,000 to $120,000|
|>70 to 75||$60,000 to $80,000|
|>75 to 80||$20,000 to $40,000|
Looking at the chart, we can see that total CPF savings tend to increase as one gets older, right up to when a CPF member turns 50. Then, CPF savings look like they decrease. One reason for this may be that older Singaporeans and PRs did not benefit from contributing as much into their CPF accounts in the earlier days.
Another big reason may be that once a person turns 55, he or she may draw down their CPF balances. At 65, CPF savings are also contributed into CPF LIFE or start getting drawn down. This may contribute to a steeper drop in median CPF savings at older age groups.
You Will Not See The Median Range In Your CPF Account
If we don’t have the median amount saved in our CPF accounts at a particular age group, there’s no reason to start panicking. This range includes amounts that have been used via the various CPF schemes mentioned above: Investments, Education, Residential Properties, Non-Residential Properties, and Public Housing Schemes. We should add these up for our personal calculations.
At the same time, it’s also important to realise that this is not a race to save the most amount of CPF balances. As it is a median range, approximately 50% of people will have more than the median range and another 50% will have less than the median CPF range.
Your takeaway is that you’re in the bottom (or top) 50% and you can still work towards accumulating more CPF savings if you think it’s valuable through the Retirement Sum Topping Up (RSTU) scheme.
Finally, we should just use this as additional information for what our peers may have, rather than stress up or take things easier thinking we are below or above the median level. We can always do more for our retirement security, and we should be concerned with our personal retirement goals.
This article was first written on 26 April 2021 and has been updated with the latest 2020 information.
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