- Joined
- Dec 30, 2010
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The current Minimum Sum will give a monthly payout of about $1,200 from age 65 for the rest of a person's life under CPF LIFE.
Nothing is mentioned about the possibility that the monthly payout may be adjusted for a number of reasons set out in CPF LIFE Information Booklet:
• Changes in mortality experience. If more people live longer than expected, the monthly payout might be lower, and vice versa.
• Changes in investment income. If investment returns are higher than expected, the monthly payout might be higher, and vice versa.
• Transactions that affect the Retirement Account balance e.g., refund of money from selling a property, top-ups, lump sum withdrawals etc.
• Changes in the extra interest on the combined balances in a member's CPF accounts, including the amount committed to CPF LIFE under the LIFE Basic Plan, as the combined balances fall below $60,000.
Neither the advertisement nor CPF LIFE Information Booklet mentions section 27N clause 7 of the Central Provident Fund Act (Cap. 36), which states:
"(7) Notwithstanding anything in this Part [IIIB]or the relevant regulations, the [Central Provident Fund] Board shall not make any payment under this Part unless the Lifelong Income Fund is solvent."
That is, CPF LIFE payouts will cease if CPF LIFE Fund is insolvent.
More things to make you lose sleep on your CPF...http://refocusing.blogspot.sg/2014/07/governments-cpf-public-relations.html
Nothing is mentioned about the possibility that the monthly payout may be adjusted for a number of reasons set out in CPF LIFE Information Booklet:
• Changes in mortality experience. If more people live longer than expected, the monthly payout might be lower, and vice versa.
• Changes in investment income. If investment returns are higher than expected, the monthly payout might be higher, and vice versa.
• Transactions that affect the Retirement Account balance e.g., refund of money from selling a property, top-ups, lump sum withdrawals etc.
• Changes in the extra interest on the combined balances in a member's CPF accounts, including the amount committed to CPF LIFE under the LIFE Basic Plan, as the combined balances fall below $60,000.
Neither the advertisement nor CPF LIFE Information Booklet mentions section 27N clause 7 of the Central Provident Fund Act (Cap. 36), which states:
"(7) Notwithstanding anything in this Part [IIIB]or the relevant regulations, the [Central Provident Fund] Board shall not make any payment under this Part unless the Lifelong Income Fund is solvent."
That is, CPF LIFE payouts will cease if CPF LIFE Fund is insolvent.
More things to make you lose sleep on your CPF...http://refocusing.blogspot.sg/2014/07/governments-cpf-public-relations.html
