Of course, I learned about their annuity product - why Singaporeans need it (blah... blah... blah...)? Retirement is getting expensive, etc. (blah... blah... blah...)?
The conversation led to the CPF Minimum Sum. These agents sure know how to lead the conversation to "why we must think about our retirement" (and their annuity products) NOW!
The agent recapped the history of the CPF Minimum Sum. He reminded me of the adjusted Minimum Sum for inflation. CPF Members who turned 55 back in 2014 had to set aside S$155,000 in their CPF-RA to receive a monthly payout of about S$1,200 when they turn 65. Next, he emphasized on the Minimum Sum for the current cohort (2015) was S$161,000. That was a S$6,000 jump.
Next, he showed me this table (below):
Based on their calculation, the projected Minimum Sum will be S$564,797 in the year 2047. Just imagine that they were right!
Wake up! Minimum Sum will definitely go up
Cost of living will definitely go up. So will our Minimum Sum. Even, if the projection was wrong +- 20%, it will still be a big sum. If that doesn't wake you up to do something now, then just pray your kid/s or someone will be able to take care of your retirement expenses.