After months of planning, debating, and weighing my options, I finally took the plunge this morning, in the last week of May, to secure my retirement plan. I’ve been talking about reaching the Full Retirement Sum (FRS) for ages, and now it’s real—my account is set to start earning the max interest from June 1st! (For those curious about why the timing matters, check out this explanation for the details.)
This moment feels like a massive weight lifted off my shoulders. Hitting the FRS milestone ensure my retirement plan is now in place. I am ready now to explore higher-risk investments without the nagging worry of "what if?" It’s a game-changer, and I’m damn proud of myself for getting here!
Why This Matters?
FRS is the amount set by the government that ensures a baseline of financial security in retirement. By hitting this target, I’ve secured a (small) steady stream of income for my later years. I don’t need to top up to meet future FRS amounts each year as the SA account will grow with compounded interest at 4% and likely exceed the yearly FRS (3.5% annual increase).
Why I Decided To Just Top-up?
With no “safe” investment instruments offering 4% or higher interest rates in today’s market, I had to make some tough decisions. Should I throw in my spare cash? Should I wait for a better opportunity? The back-and-forth was exhausting, but I finally decided to act. I pooled my resources, made the necessary contributions, and hit the FRS target just in time for the June 1st interest cycle. It’s tempting to chase quick wins or hold out for “better” options, but sometimes the best move is to secure what’s certain.
Next Financial Goal
With my HDB paid off and my FRS locked in, I’m excited to shift my focus to my next big financial goal: building a four-figure passive income stream. My aim is to create a reliable, hands-off income of at least $1,000 a month to further boost my financial freedom. I will explore options that align with my risk tolerance and long-term vision.
I’m taking a moment to pat myself on the back—twice! Paying off my HDB and hitting FRS are proof that consistent effort, careful planning, and a bit of courage pay off. I’m not just celebrating numbers; I’m celebrating the freedom, confidence, and possibilities that come with them. To anyone out there working toward their own financial goals: keep going. It’s worth it. And when you hit your milestones, don’t forget to celebrate—you’ve earned it!
Here’s to financial freedom, one step at a time. My next challenge is building that four-figure passive income.