The Retirement Sum Scheme (RSS) is designed to help Singaporeans save for retirement. It is crucial in providing financial security and stability, especially during old age. However, the RSS also has its limitations. One of them is the minimum Retirement Sum (RSP) amount that Singaporeans need to commit to enjoying the benefits provided by this scheme.
Under the current Central Provident Fund (CPF) Board rules, Singaporean citizens below 55 must set aside a minimum sum of S$85,500 in their CPF accounts as part of their RSP commitment. This amount is known as the Basic Retirement Sum (BRS). Those aged 55 and above must meet a higher RSP amount, the Full Retirement Sum (FRS). This amount is set at S$171,000.
The CPF Board periodically reviews and adjusts the FRS and BRS amounts to reflect changes in life expectancy and inflation levels. The last review for both sets of figures occurred two years ago when they were reviewed upwards by 4%.
In its review report, the CPF Board further stated that “the Basic Retirement Sum and Full Retirement Sum will be reviewed every five years so that members can enjoy retirement adequacy”. Singaporeans below 55 can expect their RSP amounts to grow over time.
Additionally, those needing more retirement funds can commit additional amounts beyond the minimum RSP requirement. It can be done in two ways. The first is through the Flexible Retirement Sum (FRS), which allows members to set aside additional funds for a higher monthly payout upon reaching 55.
The second way of topping up one’s RSP amount is through the Special Retirement Sum (SRS). This scheme incentivises Singaporeans to top up their CPF accounts with extra funds, and it offers them a higher monthly payout after they reach the age of 65.
Many Singaporeans are finding other innovative ways of saving for their retirement. One popular option is the Voluntary Retirement Scheme (VRS). This scheme encourages Singaporeans to top up their CPF accounts with extra funds while still working, and it offers them a higher monthly payout once they reach the age of 65.
Another option is to take out an annuity plan from an insurance company. Annuities provide a steady income stream throughout one’s retirement, which helps ensure financial security in old age. However, this can be expensive and may only be ideal for some.
Some Singaporeans also invest in property as part of their retirement savings strategy. Property prices in Singapore have been rising steadily over the years, which means that investing in property now can result in huge returns when one reaches retirement age. But it’s crucial to remember that real estate investments can come with risks, so you should research before deciding.
A more recent development in Singapore is using robo-advisors for retirement planning. Robo-advisors use advanced algorithms and data analytics to offer low-cost personalised investment advice. These services allow users to track their progress towards reaching their goals and make adjustments accordingly.
Many Singaporeans are turning to social media to save for retirement. Using platforms such as Facebook and Instagram, users can connect with people with similar financial and social interests and goals, which can help them find new investment opportunities or ideas for saving money over the long term.
For those looking for more traditional options, endowment plans are available through banks or insurance companies that offer guaranteed returns over a certain period, offering peace of mind and financial security during one’s golden years.
A regular savings plan is also essential for retirement planning. It involves setting aside a small amount of money monthly and investing it in long-term instruments such as stocks and mutual funds. Regular saving helps to accumulate a substantial sum over time, which can be used during retirement.
Singaporeans must assess their financial well-being and understand how much they need to save to fully enjoy a comfortable retirement. It includes familiarising themselves with the minimum RSP amounts to make informed decisions when setting up their respective CPF accounts. In addition, those who need more funds can also consider topping up their accounts through the FRS and SRS schemes for extra financial security in their later years.
timed sell orders for BNB tokens, capitalizing on the situation. Data from TradingView reveals that around 125,000 BNB, equivalent to $37 million, were sold in a surge of aggregated sell orders on the BNB/USDT order book on Binance.These sell orders occurred at 11:45 p.m. UTC on June 4 and 1:45 a.m. UTC on June 5, just before the U.S. Securities and Exchange Commission (SEC) announced its lawsuit against Binance.
Furthermore, Coinalyze data indicates that BNB’s open interest, which represents the total number of outstanding derivative contracts held by investors, increased by approximately $30 million in the first nine hours of June 5.
This rise in open interest occurred before the news of the SEC’s allegations, revealed at 11:15 a.m., which accused Binance of commingling customer funds and operating an unregistered securities exchange. An increase in open interest suggests that new traders are entering the market and initiating new positions rather than closing existing ones.
Following the SEC’s crackdown, the price of BNB, which the SEC considers a security, experienced a drop of over 9%, falling from $300 to $272 within an hour.
Traders who speculated that the price of BNB would decrease before 11:15 a.m. on June 5 profited significantly from the subsequent price action following the SEC’s lawsuit against Binance, the largest cryptocurrency exchange by trading volume.
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