Year: 2013 (deaths)
Ages
1-49 9.6%
50-59 11.7%
60-69 17.6%
70 and over 61.1%
Bequest at 65:
CPF Life Standard: $196,883 - $202,037
CPF Life Basic: $232,078 - $243,232
Bequest at 75:
CPF Life Standard: $51,570 - $59,078
CPF Life Basic: $179,550 - $180,536
Bequest at 85:
CPF Life Standard: zero
CPF Life Basic: $82,066 - $85,931
* The amount of bequest is so fantastic that one wonders if CPF Life is really providing for retirement income. For many people, even before they could start to smell their CPF money at 65, the payout is already $243,232 (max.) to their beneficiaries. It reminds me of the Sunny Ang murder case.
* Assuming year 2013 is representative, 29.3% die before 70. There are 1 million people who are disadvantaged by longevity insurance.
* We should be allowing people to opt out of bequest and receive payment starting at 60. All the criticism about low returns, $1,200 p.m. (which is already a princely sum for low income people) not enough, withholding of CPF money would be addressed.
* A retiree with monetised savings in the bank instead of paper profits need not go see her MP on related issues like healthcare costs. A retiree doesn't have to wait until she falls sick, faces a huge medical bill, and then requires other people's help to monetise her flat. The MP, medical social worker, and HDB will save a lot of time. But retirees must be at an age healthy enough and at a psychology level strong enough to relocate, especially to non-mature estates.
* The psychology of windfall gain. A young person receiving an inheritance will not hesitate to spend it at one go, say on a car. A non-working old couple sitting on their savings are unlikely to squander them. Anyway, CPF money is retirement money, not an estate.
Ages
1-49 9.6%
50-59 11.7%
60-69 17.6%
70 and over 61.1%
Bequest at 65:
CPF Life Standard: $196,883 - $202,037
CPF Life Basic: $232,078 - $243,232
Bequest at 75:
CPF Life Standard: $51,570 - $59,078
CPF Life Basic: $179,550 - $180,536
Bequest at 85:
CPF Life Standard: zero
CPF Life Basic: $82,066 - $85,931
* The amount of bequest is so fantastic that one wonders if CPF Life is really providing for retirement income. For many people, even before they could start to smell their CPF money at 65, the payout is already $243,232 (max.) to their beneficiaries. It reminds me of the Sunny Ang murder case.
* Assuming year 2013 is representative, 29.3% die before 70. There are 1 million people who are disadvantaged by longevity insurance.
* We should be allowing people to opt out of bequest and receive payment starting at 60. All the criticism about low returns, $1,200 p.m. (which is already a princely sum for low income people) not enough, withholding of CPF money would be addressed.
* A retiree with monetised savings in the bank instead of paper profits need not go see her MP on related issues like healthcare costs. A retiree doesn't have to wait until she falls sick, faces a huge medical bill, and then requires other people's help to monetise her flat. The MP, medical social worker, and HDB will save a lot of time. But retirees must be at an age healthy enough and at a psychology level strong enough to relocate, especially to non-mature estates.
* The psychology of windfall gain. A young person receiving an inheritance will not hesitate to spend it at one go, say on a car. A non-working old couple sitting on their savings are unlikely to squander them. Anyway, CPF money is retirement money, not an estate.
