As of 2021, my default retirement destination is Singapore ( roaming_retirement as a viable 2nd option). So there’s a real, valid question, raised at the recent DBS seminar:
Q: is CPF-life payout sufficient against Singapore inflation
My fundamental stance — I’m betting on Singapore government to manage inflation and sustain CPF-life pay out.
— Phase 1: now till 65 — Government bumps up ERS amount by about 3% annually to match inflation.
I’m basically confident to meet ERS, perhaps by liquidating some property assets.
— Phase 2: from 65 to my twilight years — Vance Chhoa pointed out that monthly payout amount won’t increase year after year and will suffer from erosive inflation.
Given that I plan to live 30 years in Phase 2, this erosion will be significant.
Basically I choose to put it out of mind for now. I will surely think about it in the future. No hurry.