CPF Minimum Sum vs CPF Life

[kryonlight]

http://mycpf.cpf.gov.sg/NR/rdonlyres/09EA0C05-C8E9-4705-9D91-E8BD1D12CF1E/0/LIFEBrochure.pdf

Mr Tan is a Singaporean who will be 55 in January 2014. He
has $100,000 in his RA and will be placed on CPF LIFE. He
can choose between the two existing plans (the LIFE
Standard Plan or the LIFE Basic Plan).

Option 2: If he chooses the LIFE Basic Plan

When Mr Tan reaches 55 years old, we will deduct
approximately 10% of $100,000 from his RA as the first
annuity premium for his LIFE Basic Plan. The rest of Mr
Tan’s RA savings will stay in his RA until his DDA.

Between 55 years old and his DDA, Mr Tan could have new
money paid into his RA. We will deduct approximately 10%
of this new money from the RA as the second annuity
premium about one to two months before Mr Tan’s DDA.

When he reaches 65 years old, Mr Tan will receive a monthly
payout of between $734 and $812 from his RA until his 90th
birthday. The amount of monthly payout that Mr Tan could
receive is based on the assumption that there is no new
money paid into his RA other than the 1% extra interest
between Mr Tan’s 55th birthday and his DDA (65).

When Mr Tan reaches 90 years old, he will start to receive a
monthly payout of between $734 and $812 from his LIFE
annuity. The monthly payout includes a payout of about $50
from the extra interest which is paid from the RA for as long
as it is being earned.

Depending on how old Mr Tan is on the date of his death, his
beneficiaries may receive bequests as shown below.

How old Mr Tan is on the date of his death / Bequest
65 / $145,525 to $152,453
75 / $105,506 to $111,892
85 / $47,955 to $50,689

Is there something wrong with this calculation by CPF Board?

RA has only $100,000. And he can have a bequest of $145,525 at age 65? Isn't this too good to be true?

 

[leetahbar]

Is it better for a Singaporean to remain on the Minimum Sum scheme rather than opt for CPF Life? If she takes $200 from her monthly payout and buy a life insurance plan that matures in 20years, she will probably have enough money even if she has a long life after 85years. Has anyone done the maths?

if it's to the advantage of the ppl, the pah gahmen would not endorse it.

CPF LIFE is meant to zap every cents dry from most of the accounts which sadly belong to the lower paying peasants.

 

[TracyTan866]

if it's to the advantage of the ppl, the pah gahmen would not endorse it.

CPF LIFE is meant to zap every cents dry from most of the accounts which sadly belong to the lower paying peasants.

I agree. that's why i sense that Singaporeans shd not opt for CPF Life if they have a choice

 

[halsey02]

Assuming, there are 1 million persons retiring in 2014, who contributes $10,000 for CPF Life...it would 10 Million. "mee siam mai hum, hubby"
must be damn happy to received so many "CHIPS" to gamble....will be having a GOOD YEAR ahead... ha ha ha ha

 

[TracyTan866]

Assuming, there are 1 million persons retiring in 2014, who contributes $10,000 for CPF Life...it would 10 Million. "mee siam mai hum, hubby"
must be damn happy to received so many "CHIPS" to gamble....will be having a GOOD YEAR ahead... ha ha ha ha

it is much more.

and TH got the money at very low interest rate, almost free money to gamble with. she is gambling with others money.

singaporeans must know why the pap is so reluctant to pay the money to singaporeans. first, HC has almost free money to gamble. Second, the pap may not have much money left. so it makes sense now for the pap to delay paying CPF money. we need a new govt to convene an inquiry to find the truth and dig out any abuse

 

[halsey02]

it is much more.

and TH got the money at very low interest rate, almost free money to gamble with. she is gambling with others money.

Singaporeans must know why the pap is so reluctant to pay the money to singaporeans. first, HC has almost free money to gamble. Second, the pap may not have much money left. so it makes sense now for the pap to delay paying CPF money. we need a new govt to convene an inquiry to find the truth and dig out any abuse

It is sad to see that, most SINgaporeans reading news on rampant abuse of Pensioners Funds worldwide are helpless to do anything about theirs. I am helping a relative at the moment to withdraw some R.A., a large portion of which had gone to annuity. The portion that had gone to annuity, will not be touched, what the person is asking is the small balance in the R.A. My relative suffered a stroke, which was life threatening at one stage, unfortunately did not die. The person had since recovered well enough to walk, talk & function, but like a broken vase patched, mobility is not the same anymore, gets tire very fast etc.

So, the person make a request for withdrawal from CPF RA Account after reading November 13, 2013 announcement in the press that gave CPF board much more flexibility for members to withdraw funds. We do understand that, medical reports from the doctors must be seek & they have to fill up the form in which CPF submit to them, in order for CPF TO PAY OUT YOUR MONEY.

To cut the whole thing short, CPF conditions is so steep, it is almost impossible for one to withdraw our own money, one of the questions asked was, " do you think the patient will die withing 12 months"...In other words, one would have to be belying down in a bed unable to move or within 12 months, go see our maker, to be entitled to our own money.

My relative after suffering the stroke, is not able to work & even when fully recovered, no employer would want to employ, even at $800 a month, for there is already a medical condition. All that person is asking is that small portion of money from OWN CPF ACCOUNT. CPF is giving a very strong impression, that, they would hold on to your money...as long as they can, & not to give you, if they can, & if you want your money, you CAN'T.

How can you blame anybody impression that CPF is not your money....

 

[whoami]

Put it tis way. At least return our "employee cpf contribution"! Every mth cpf deduct fm my hard earned salary. Cpf shld return us tis portion upon the members reaching age 55.

 

[halsey02]

Put it tis way. At least return our "employee cpf contribution"! Every mth cpf deduct fm my hard earned salary. Cpf shld return us tis portion upon the members reaching age 55.

We need to have more oppositions in parliament to open up the books...starting with CPF!!

 

[TracyTan866]

It is sad to see that, most SINgaporeans reading news on rampant abuse of Pensioners Funds worldwide are helpless to do anything about theirs. I am helping a relative at the moment to withdraw some R.A., a large portion of which had gone to annuity. The portion that had gone to annuity, will not be touched, what the person is asking is the small balance in the R.A. My relative suffered a stroke, which was life threatening at one stage, unfortunately did not die. The person had since recovered well enough to walk, talk & function, but like a broken vase patched, mobility is not the same anymore, gets tire very fast etc.

So, the person make a request for withdrawal from CPF RA Account after reading November 13, 2013 announcement in the press that gave CPF board much more flexibility for members to withdraw funds. We do understand that, medical reports from the doctors must be seek & they have to fill up the form in which CPF submit to them, in order for CPF TO PAY OUT YOUR MONEY.

To cut the whole thing short, CPF conditions is so steep, it is almost impossible for one to withdraw our own money, one of the questions asked was, " do you think the patient will die withing 12 months"...In other words, one would have to be belying down in a bed unable to move or within 12 months, go see our maker, to be entitled to our own money.

My relative after suffering the stroke, is not able to work & even when fully recovered, no employer would want to employ, even at $800 a month, for there is already a medical condition. All that person is asking is that small portion of money from OWN CPF ACCOUNT. CPF is giving a very strong impression, that, they would hold on to your money...as long as they can, & not to give you, if they can, & if you want your money, you CAN'T.

How can you blame anybody impression that CPF is not your money....

The pap gets away with the CPF abuses because:

some Singaporeans are ignorant
some are too lazy to read carefully
some dont know the implications

 

[TracyTan866]

Put it tis way. At least return our "employee cpf contribution"! Every mth cpf deduct fm my hard earned salary. Cpf shld return us tis portion upon the members reaching age 55.

the pap is not returning your CPF at 55. Worse, they force you into CPF Life which is a poor alternative to the minimum sum.

now, what do you intend to do abt the abuses?

 

[TracyTan866]

We need to have more oppositions in parliament to open up the books...starting with CPF!!

yes..until then, what do you intend to do abt it?

 

[halsey02]

yes..until then, what do you intend to do abt it?

Pass the word around, quietly, without disturbing the 'water'...a quiet pool is a deadly pool.....

 

[TracyTan866]

Pass the word around, quietly, without disturbing the 'water'...a quiet pool is a deadly pool.....

well said. I am with you

we need to expose this to as many people as possible

 

[chonburifc]

The pap gets away with the CPF abuses because:

some Singaporeans are ignorant
some are too lazy to read carefully
some dont know the implications

FAKE CHEEBYE PAP IB showing tail liao! So again. everything is sinkee fault?

 

[Confuseous]

CPF LIFE exposed - what you really need to know

Recently the government introduced CPF Life scheme to provide us with a monthly payout for as long as we live.

After you reach 55 years old, savings from your Ordinary Account (OA) and Special Account (SA) will go into a Retirement Account (RA) up to Minimum Sum (MS).

You can choose between:

 Life Standard Plan or
 Life Basic Plan

If you choose Life Standard Plan, the annuity premium is taken from your RA in 2 instalments. Each instalment comprise ½ MS payable at 55 years and 65 years.

For the Life Basic Plan, the annuity premium instalments are about 10% each (as shown in examples in CPF Life handbook)

You will start to receive monthly payouts at 65 years old, call the Draw Down Age (DDA).

So far sounds Good?

Let look at an example and you will understand the shocking facts behind the Life Plan!

Let take a person turned 55 this year. The MS is $148,000.

Assume he has $74,000 in his RA, after pledging ½ MS to his property.

(You can do the simulation for different birth year and RA savings using the CPF Life Payout Estimator https://www.cpf.gov.sg/cpf_trans/ssl/financial_model/lifecal/Life_Estima... )

The payouts for both Standard and basic Plans are shown in table.

http://www.therealsingapore.com/content/cpf-life-exposed-what-you-need-know

 

[zhihau]

Re: CPF LIFE exposed - what you really need to know

Recently the government introduced CPF Life scheme to provide us with a monthly payout for as long as we live.

just give us the option to opt out of this CPF Life.

 

[frenchbriefs]

Doesn't matter garmen is going to raise retirement age to 80 to make sure u retire with peace of mind and happily.fts can retire at 50 and go back to shanxi village to live out their golden years.

 

[Seee3]

Re: CPF LIFE exposed - what you really need to know

.....

Let look at an example and you will understand the shocking facts behind the Life Plan!

Let take a person turned 55 this year. The MS is $148,000.

Assume he has $74,000 in his RA, after pledging ½ MS to his property.

(You can do the simulation for different birth year and RA savings using the CPF Life Payout Estimator https://www.cpf.gov.sg/cpf_trans/ssl/financial_model/lifecal/Life_Estima... )

The payouts for both Standard and basic Plans are shown in table.

http://www.therealsingapore.com/content/cpf-life-exposed-what-you-need-know

The only way (for someone or his family) to get back your CPF in full is to die or denounce citizenship before 55. Once after 55, part of it will vaporize. Someone once asked me which of the 2 options is better. My answer to him was, "What is the default option if you don't exercise your right to opt? Just pick the one that is not the default option. Sure better one. The lesser of the 2 evils."

 

[TracyTan866]

Re: CPF LIFE exposed - what you really need to know

Recently the government introduced CPF Life scheme to provide us with a monthly payout for as long as we live.

After you reach 55 years old, savings from your Ordinary Account (OA) and Special Account (SA) will go into a Retirement Account (RA) up to Minimum Sum (MS).

You can choose between:

 Life Standard Plan or
 Life Basic Plan

If you choose Life Standard Plan, the annuity premium is taken from your RA in 2 instalments. Each instalment comprise ½ MS payable at 55 years and 65 years.

For the Life Basic Plan, the annuity premium instalments are about 10% each (as shown in examples in CPF Life handbook)

You will start to receive monthly payouts at 65 years old, call the Draw Down Age (DDA).

So far sounds Good?

Let look at an example and you will understand the shocking facts behind the Life Plan!

Let take a person turned 55 this year. The MS is $148,000.

Assume he has $74,000 in his RA, after pledging ½ MS to his property.

(You can do the simulation for different birth year and RA savings using the CPF Life Payout Estimator https://www.cpf.gov.sg/cpf_trans/ssl/financial_model/lifecal/Life_Estima... )

The payouts for both Standard and basic Plans are shown in table.

http://www.therealsingapore.com/content/cpf-life-exposed-what-you-need-know

If CPF Life is better than Minimum Sum, why doesn't the pap give us a choice? Are we daft not to choose the better option.

 

[TracyTan866]

Re: CPF LIFE exposed - what you really need to know

just give us the option to opt out of this CPF Life.

I agree, CPF Life should not be compulsory

CPF Life will ensure the management agent gets well paid every year at the expense of CPF depositors