Full Retirement Sum (FRS) is the amount to accumulate in Special Account (SA) at 55 to ensure a decent payout from CPFLife at 65 or above.
FRS increases annually and CPF only publishes the FRS amount for those turning 55 in the upcoming years. Hence, to make plans in advance, it is important to get a rough sense of the potential FRS amount when I turn 55.
Based on the table above, FRS has been increasing ~3% annually on average for the past 5 years.
TIP:
To ‘catch-up’ with the moving FRS target, one should attempt to achieve prevailing FRS in SA as early as possible. The 4% interest per year should cover the annual increment in FRS.
Use the free calculator below to estimate FRS at 55. You can also adjust the ‘FRS’ increment rate to plan for your “worst case” scenario.
