Let's just say that i've been inspired once again to "plan it right" after some talk with my friends about days after marriage. Love is really not everything when it comes down to settling with someone you've decided to face for the rest of your life (At least that's my impression of marriage)
So let's just include come simple Mathematics into the picture to know where i'll stand in the society with my expected commanding salary coming soon. I've done some pre-calculations and I turned out to be quite just below the middle range IMO.
Let's see...
For confidentially I'll assume a commanding salary of 2500 SGD. Let's talk about CPF first. With 2500SGD and a mandatory contribution of 20% into the CPF, liquid cash flow shall be around 1500SGD/mth with expected food and transportation fee (15SGD x 31DAYS = 465SGD ~ 500SGD rounded off for easy calculation) thus leaving a 1000SGD liquid cash having 0.05% interest rate in POSB savings account adding up to 12,600SGD P.A in bank and a (900SGD x 12 = 10,800SGD + 2.5% P.A interest = 11,070 SGD) in your CPF account.
In total, in terms of buying a house I'll have a rough 23,500SGD round down estimated cash available.
Let's assume a 200SGD increment of income in terms of yearly experience for the first 5 years. (This is a great jump of salary base at large thus being optimistic)
I'll most probably be able to pay for my 1st HDB flat on the spot assuming a 200,000SGD 3 or 4 room apartment. This estimation is based on several flawed assumptions.
1) I do not spend as I wish and all other misc costs are not included within the 5 years time span.
2) I am assuming for the worse where my wife does not contribute to the housing investment.
3) Illness out break / emergency needs for extra expenditure.
4) I'm not having a kid by the age of 30 years old.
I'll do a more detailed calculation after this so that you'll understand the importance of planning ahead. That being said, your spouse contribution is extremely important so choose your partner carefully. Peace out.
Sunday, February 26, 2012
Tuesday, January 24, 2012
CPF redrawal is getting further and further away
SINGAPORE: A new law will come into effect to ensure that Singaporeans stay employed longer.
From 2012, a re-employment law will kick in to make it mandatory for employers to offer re-employment to workers who have reached the retirement age of 62.
As a first step, they will have to offer re-employment for workers up to the age of 65.
This will later be pushed to the age of 67.
While not expecting people to work into their 80s and 90s, Prime Minister Lee Hsien Loong said in his National Day Rally speech on Sunday that retiring at 55 or even 62 is far too early.
Besides educating both workers and employers on the value of older workers and financial incentives, Mr Lee said legislation is also needed.
Countering the suggestion that the government should just raise retirement age to solve the problem, Mr Lee said experience has shown that would not be the right solution.
While the legal retirement age is 62, he said one third of men here have already retired before they hit 62 and many women have retired even earlier.
Moreover, a higher retirement age may discourage employers from hiring older workers.
The better approach, Mr Lee said, is to legislate for re-employment to continue beyond the age of 62.
However, making sure that the employer makes an offer to rehire a worker at the age of 62, does not mean he or she will definitely get the same job at the same pay.
The employer will take into account the worker's performance, health and preferences, as well as the company's needs.
"It's more flexible for both the employers and employees... not necessarily the same job, not necessarily the same pay, but employer has to make an offer, taking into account the worker's performance, his health, his preferences and the company's needs, and both sides work out a win-win arrangement," said PM Lee.
From 2012, a re-employment law will kick in to make it mandatory for employers to offer re-employment to workers who have reached the retirement age of 62.
As a first step, they will have to offer re-employment for workers up to the age of 65.
This will later be pushed to the age of 67.
While not expecting people to work into their 80s and 90s, Prime Minister Lee Hsien Loong said in his National Day Rally speech on Sunday that retiring at 55 or even 62 is far too early.
Besides educating both workers and employers on the value of older workers and financial incentives, Mr Lee said legislation is also needed.
Countering the suggestion that the government should just raise retirement age to solve the problem, Mr Lee said experience has shown that would not be the right solution.
While the legal retirement age is 62, he said one third of men here have already retired before they hit 62 and many women have retired even earlier.
Moreover, a higher retirement age may discourage employers from hiring older workers.
The better approach, Mr Lee said, is to legislate for re-employment to continue beyond the age of 62.
However, making sure that the employer makes an offer to rehire a worker at the age of 62, does not mean he or she will definitely get the same job at the same pay.
The employer will take into account the worker's performance, health and preferences, as well as the company's needs.
"It's more flexible for both the employers and employees... not necessarily the same job, not necessarily the same pay, but employer has to make an offer, taking into account the worker's performance, his health, his preferences and the company's needs, and both sides work out a win-win arrangement," said PM Lee.
Singapore Government Curb Property Prices
The government has introduced additional buyer’s stamp duty for private residential properties.
With effect from 08-12-2011, foreigners and corporate entities purchasing private residential properties in Singapore would have to pay an extra 10% in the form of additional buyer’s stamp duty.
Permanent residents buying their second or subsequent homes and Singaporeans buying their third residential property or more in the local market would have to pay extra 3%.
Below are the new stamp duty rates and its impact on buyers (compiled by Straits Times)
With effect from 08-12-2011, foreigners and corporate entities purchasing private residential properties in Singapore would have to pay an extra 10% in the form of additional buyer’s stamp duty.
Permanent residents buying their second or subsequent homes and Singaporeans buying their third residential property or more in the local market would have to pay extra 3%.
Below are the new stamp duty rates and its impact on buyers (compiled by Straits Times)
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