Wednesday, 21 August 2019

Thoughts on National Day Rally

The National Day Rally just over. One of hottest topics after the rally Is the increase in retirement age from 62 to 65 by 2031. Some of the common things I heard in the office are mostly: 

‘Die la, work until 65’.

‘Jialat ah, work and work. Pay and pay.’

’65 years old then can retire, like that how to survive.’

The truth is: that number in the age is just a guideline. We do not really need to work until that retirement age, that is if you do something about it. That’s the whole idea of achieving ‘Financial Independence’, you become independence and do not need to follow that guideline anymore. You are free to chooses your path. 

The raising of retirement mainly is catered for those who still wish to continue working. Some are without any choices while others are people who just prefer to continue working rather than staying at home. These type of people generally do not have much social life, and it turns out that the workplace is their only platform of human interaction that keeps them active. 

Another hot topic is the CPF system, there are no changes to the withdraw policies. The first withdraw out age remains at 55 years old, our Ordinary account + Special account should meet the required amount that will be created as Retirement account.  

As I am in my forties, the most immediate concern naturally would be the first withdraw age at 55 years old. Although I have yet to reach the current cap, but based on the compound interests of 4%, it is still possible to reach it by 55 years old with my current principal amount. So, all I need is to do keep going and stay focus.

Go! Go! Go!

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