Delayed Retirement Age And Other Changes In Singapore Retirement

Despite the economic headwinds, the retirement age will begin to shoot up in 2022. Manpower Minister Josephine Teo highlighted they “did not arrive at this date lightly even though towards the later part of our deliberations, it was clear to us that the economic conditions have changed quite considerably.” All that is left for us to do is to adapt to the recent changes in the retirement age and CPF contributions.

INCREASED MOM RETIREMENT AGE

Foresee a gradual increase in Ministry of Manpower’s retirement age. Currently, the official retirement age is 62 years old. This number will increase to 63 years old in 2022 and to 65 years old in 2030. Do you think a higher retirement age is desirable?

Nonetheless, Prime Minister Lee Hsien Loong greatly emphasized that there is no change to the CPF payout ages and withdrawal. You may withdraw money from your CPF RA upon reaching 55 years old and start receiving CPF LIFE payouts from age 65. All these were discussed during the National Day Rally.

ALTERED EMPLOYMENT PROCESS

Possibly one of the most affected with the changes in the retirement and re-employment age is your employer. It is completely legitimate to work up to the MOM re-employment age. Your employer cannot deny you that.

At the moment, the re-employment age is 67. It will increase to 68 years old by 2022 and eventually become 70 years old by 2030. It is highly encourage that employers equip these employees with necessary training and skills to help them tackle the contemporary positions.

In light of the aging workforce, the Tripartite Workgroup on Older Workers made several other suggestions to restructure the work environment in Singapore.

RAISED CPF CONTRIBUTION RATES

Aside from the changes in retirement and re-employment age, the CPF contributions for workers beyond age 55 will be raised. This will be felt from January 1, 2021 onwards. The extra CPF contributions will go straight to your CPF Special Account.

When the CPF contributions for the 55-60 years old age group increases by 2021, the allocation for your CPF (SA) will jump from 3.5% to 5.5%. The rest will remain the same.

Image Credits: unsplash.com

May these guidelines and significant changes help you decide for a better future ahead!

Sources: 1 & 2

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Foolish Things People Do With Their Money

We have all made mistakes in the past, especially when it comes to money and relationships. While some are knowingly reckless, others are less obvious. That being said, here are some foolish things that people do with their own money.

Awareness is the key to change!

BEING OVERLY CONSERVATIVE WITH ONE’S INVESTMENTS

Whether you are terrified to max out your savings or to dive into uncharted territories, Millennials are not investing hugely in the stock market. Consider your risk tolerance while you are in your early 20s as this is the best time to bounce back after a decline. Compound interest entails that it is beneficial to stay in the market as early as you can. Simply put, a risky investment while you are young has time to correct itself.

Apply this ideal towards your retirement fund. Set a diversified portfolio directed to your retirement fund and ensure that the risk exposure is based on your age and timeline.

ABSORBING THE INTERNET SCHEMES

Let us face it! The Nigerian Prince you have waiting for may never come. Although Internet scams have become more sophisticated than ever, you must not give your sensitive bank information to anyone that pleads for it.

Some people carelessly give out their account passwords in the name of love. You have to think twice! You are merely opening yourself to identity theft by doing so. Mark suspicious emails as spam and leave them alone.

MAKING FINANCIAL DECISIONS ON YOUR OWN

A family is a unit and it is helpful to have an open communication with your partner. As financial decisions and career paths affect multiple people in the relationship, you must discuss these as a unit. Relocating, childcare, long working hours, or converting to entrepreneurship are examples of factors that involve the sole earner as well as other family members.

If you belong to a dual-income household, do not make the daft decision of managing your ambitions on your own. Ensure that you are on the same page when in comes to managing your household and your career goals to avoid conflicts.

DISMISSING YOUR CREDIT CARD REPORT

Despite being a free service, checking one’s credit card report is not something that people do religiously. It is important to check your report to help you catch suspicious activity, prevent identity theft, and report unauthorized purchases.

Image Credits: pixabay.com

In addition to keeping an eye on fraud, you can track your credit score progress.

Sources: 1 & 2

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Relieve your pains quicker than it takes to order Kopi Peng

As our modern society grows at a breakneck pace, more individuals are forced to lead busy lifestyles in hectic environments. Even the younger generation isn’t spared! While more professionals are spending extended hours in front of their computers, our youths are facing their own battles; killer schedules and endless homework.

“Before you know it, you’ve passed your prime – and all you’ve inherited is an overworked body and a much-neglected health.”

Chiropractic Adjustments can help rectify many concerns such as (but not limited to) text neck, bone spurs, back aches, unnecessary headaches, and tense muscles without the use of drugs or surgery!

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How To Spot Fake Rich People In Singapore

Trying to spot whether a person is fake rich or not is much like asking whether a bag came from a real designer or not. You can never fully answer the question unless you take a close look at it. It is challenging to judge whether someone is an average Singaporean or a wealthy one because there are many fake rich people that can look as realistic as the authentic ones.

On that note, here are four tips to help you spot a fake rich person.

THEY NEED VALIDATION

People who attach their worth to their lavish lifestyle often need validation. They want others to share their insights on their jobs, their material possessions, or their home. They care more about how they will be perceived than the quality of the products that they will acquire.

For instance, fake rich people focus on the designer brands and not its quality. They may even own a couple of designer pieces and try to sneak in an imitation or two. It does not matter if they poke a hole in their wallets! The bigger the logo, the happier they become.

Many affluent people could not care less about the brands! They focus on comfort and quality. Unless they are aiming to make a statement, they stick to more subtle pieces.

THEY MAKE EXCUSES

Recently, notorious fake heiress Anna Sorokin was convicted of swindling about US$200,000 from New York’s elite. She often made excuses such as leaving her credit cards behind or paying next time. You have to be cautious when hanging out with someone who frequently forgets his or her wallet, which is parked in a car far from the restaurant. Fake rich people make up excuses to avoid the burden of paying.

Do not get me started with whether that car exists only in social media or in real life!

THEY WANT TO COMPETE

Observing how a person will behave when faced with someone who is experiencing success can help you filter out an insecure person. Fake rich people typically grab the chance to share their material possessions and achievements whenever they mixed in a group of people. They have a tendency to compete in order to savor the spotlight. Talk is cheap!

On the flip-side, successful people ask more questions to get insights on other people’s passions, journeys, and struggles.

THEY PURCHASE LIABILITIES

Material goods that depreciate its value over time are called liabilities. People who want to flaunt their wealth usually buy liabilities on credit or on installments. Whether they purchase a flashy entertainment set or the latest Prada bag, the fake rich would want to immediately show off their purchases to others.

Image Credits: unsplash

As we all know, it is recommended to use credit to acquire assets rather that liability. That is called a good debt!

Sources: 1 & 2

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Australian dollar hits decade low against the Singdollar: S$1.00 = AUD1.08

The Australian dollar is at its lowest since 2009

The Australian dollar has dropped to its lowest level against the Singapore currency since the 2008 Global Financial Crisis. The Aussie dollar is weaker this morning after it traded at an intraday low of 1.0816 against the Singapore currency, according to Investing.com

The Australian dollar plummeted after a huge rate cut from the Reserve Bank of New Zealand as investors now expect the Reserve Bank of Australia to follow suit, as it did with rate cuts earlier this year.

It is about time to plan a holiday to Australia with the attractive exchange rate.

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