Not so long ago, my brother-in-law applied for the latest HDB launch of flats, and selected a 4-room apartment to ballot for. My brother-in-law had quite a few questions for me, but my memory is failing me as the process happened so long ago. Red Brick has an awesome infographic that answered a lot of his financing questions.

Located right beside Woodleigh MRT, the apartment had a decent location which commanded a really high price. The median price would put it right at the half-a-million mark. A scary thought to me, and a huge difference compared to what my wife and I went through.

Granted, my current place has an inferior location at Punggol and we had 8 years of advantage (we balloted in 2008) against the dreaded inflation. Our apartment was priced at $237k and we were able to stretch our loan to 30-years in the past. Now, its only 25-years max.

A peek at what is currently in construction right beside my estate.

Anyway, what this means in practical terms is that every month for the repayment of HDB loan, my brother-in-law is looking at probably $800+ outlay from CPF Ordinary Account in future, with some to spare in CPF-OA monthly.

I don’t quite like the idea of having very little money in CPF-OA accounts. People tend to underestimate the humble prowess of CPF contributions via constant employment and the effect of compounding. My CPF Ordinary Account can now fund a total of 144 months of HDB loan repayment. Yes, 12 years. But, it is what it is.

I felt that it is incredible to pay an extra $200k-$300k for what is essentially the same amount of living space. Nevertheless, I hope he gets his dream HDB apartment 🙂

2015 vs 2017 : What’s Changed?

Back in 2015, I wrote a post on CPF. This post is sort of like a sequel.
I am happy to repeat the disclaimer again 😉

This blog post involves CPF talk. To spare you the agony, if you are not keen on the topic, do not read any further! I have no interest in arguing, convincing, or justifying anyone or anything here.

Based on my projections in 2015, I had estimated a 15-year timeline (starting from 2015) when my CPF accounts would meet both Basic Healthcare Sum (BHS) and Full Retirement Sum (FRS) requirements. After which, the annual interest generated from the CPF accounts would then fulfill the subsequent increases in BHS and FRS even without further contributions into CPF. Auto-pilot mode!


After checking my statements, it appears that my projections back then in 2015 was overly pessimistic (I know, I’m the half-cup-empty kind of guy). The new projections as of January 2017 would now shorten the 15-year time-frame to 13-year instead.

I have updated the confirmed CPF requirements in pink. For 2017, BHS of $52,000 and FRS of $166,000. The numbers are purely for my own estimation purposes as explained in my 2015 post.

Likewise, I’ve continued my pessimistic nature by taking into considerations CPF contributions as a result of my modest annual earnings based on “really old” data to factor in “shit happens” scenarios i.e. salary that is assumed not to increase at all .. forever. Till the end of time.

So, I’m guessing I will meet CPF requirements before I’m 45 years old. Best case scenario? Probably by the time I’m 40 – all without contributing a single, extra cent into CPF.