Hello, $20k is a big world of difference from $34k. And dear AK71 is 46 yo not 43.
Why is $20k a big world of difference from $34k?
Assuming the fake 43yo has $215k in his SA, he will have the same interest from SA as AK71 at $8,800
His MA, lets say is $52k, will give him an interest of $2.08k
That means the rest of his interest has to come from his OA. ($34k - $8.8k - 2.08k = $$23.12k)
With the
CPF interest for OA at 2.5%, this means he has to have $924k in his OA.
I already showed that a person contributing to max ($37,740) each year for 20 years will only have $750,800 - below the $924k needed to generate the $23.12k of interest.
Dont forget this $750,800 has to be distributed to the other accounts (SA and MA) as well.
AK71 figures are real. And if he continues to make maximum contribution of $37,740 each year till he is 55, he will likely achieve more a than $1million in his
CPF.
AK has 9 more years to go. So he can contribute 9 x $37,740 = $339,660
Adding to his current amount of $457.4k (OA) + $215.8k (SA) + $52k (MA) will give him a total of $1.064m. With 9 years of interest at $20k per year = 9 x $20k = $180k
So at 55, AK should have $1,244m!
And AK's case validates my point that an individual can have more than $1m in his mid 50s.
My
CPF amount, total of all accounts, is slightly higher than that. Even if we want to contribute more,
CPF does not allow.