Dear readers, according to UBS’ 15th edition of Global Wealth Report, there are 333,204 millionaires in Singapore in 2023. Based on the report, 0.6% of the world’s millionaires are in Singapore.
A millionaire is an individual with a net worth of at least US $1 million. Net worth is defined as Assets minus Liabilities.
I am of the view that in Singapore, there are individuals who are already in the millionaires list but do not know it as it is not clear on whether the definition of assets for individuals in Singapore should include CPF?
Why is this so?
Well, for a number of Singaporeans, their CPF balances could be substantial and they can be millionaires with net worth of at least US $1 million if CPF is included as part of asset and not otherwise. But even till today, I am not sure on whether the definition of assets in the various reports on number of millionaires in Singapore include CPF?
According to a webpage from SingSaver, CPF is included in the definition of assets, as are cash savings, market value of all investments, insurance cash value and property.
Given the withdrawal of CPF is subject to somewhat rigorous conditions, I would think that even if an individual who is considered a millionaire including CPF and the individual does not have as much cash and liquidity, this millionaire individual will still have to be prudent in expenditure, especially in this higher cost environment and may not lead a lavish lifestyle that many will associate with being a millionaire.