What do you think of CPF Life ?

[Khun Ying Pojaman]

I did a simple calculation. If you barely meet the Minimum Sum Requirement of $123,000 whether it's a lump sum in your Retirement Account or a mixture lump sum plus property pledge, EVEN without the CPF Life you can withdraw about $700 plus per month from 65 onwards until your Retirement Account has dried up. That's about 15 years when you're already 80.

On the other hand, with CPF Life Plus when the monthly payout is the 2nd highest compared to the other options, you get paid about $600 plus until you die. It's not free. Your savings in your Retirement Account will be locked up until you die, and a large chunk of it will be used to pay the premium of your annuity.

At 80, it's worthwhile to take the risk that you will die any time soon, so it appears to me that CPF Life Plus is not really that helpful if you meet the CPF Minimum Sum in your RA.

What say you ?

 

[zhihau]

What say you ?

give me the option to opt out of CPF Life. return me the rights to handle my own money.

 

[Ramseth]

Rule of thumb. Try not to keep any money in CPF. Most Singaporeans whom buy big property you think are stupid or excessive are actually quietly cleverer than you. They just couldn't be bothered to argue with you. Once your CPF money is all cleared to buy property, there's nothing the government can do to re-retain it for fancy ideas like MSS or CPFLife. GIC and Temasek can go bankrupt, zero or minus. The most they can do is lock up some of your money in Medisave. Not your problem, you still have your property and your medical is taken care of by the way. They have to pay it for you from your Medisave. But of course, more than retirement with a property and medical care. You need to plan for some cash along the way. The point is, never trust a government that keeps changing laws and trust your own cash.

 

[Muthukali]

give me the option to opt out of CPF Life. return me the rights to handle my own money.

I second that...

 

[QXD]

I did my calcs long ago and figured that it would be better off paying higher taxes while you are young, saving up for your retirement, and have the government subsidize any shortfall (pension, senior discounts on utilities, transport etc) in your retirement until you die.

That's why I prefer my max. bracket tax of 48.75% here in Oz that can be worked off easily via tax-reducing strategies rather than instituted daylight robbery via CPF life.

With CPF life, your family is better off with you dead than alive once you reach retirement.

 

[Khun Ying Pojaman]

I'm hoping to get some feedback on the actuarial aspect of the scheme.

 

[Ramseth]

I'm hoping to get some feedback on the actuarial aspect of the scheme.

Actuarially, CPFLife is quite good, according to TKL (FSA) and without actuarial qualification myself, I'd say that's the best among annuities offering fixed interest. It may not be high according to your expectation but it's the highest available, beating all private financial institutions offering something similar. If you have the money and invest yourself, you'd have to bear the risk-reward ratio yourself. I prefer to do that myself. As for you, you have to decide for yourself before CPF locks your funds in.

 

[Khun Ying Pojaman]

Actuarially, CPFLife is quite good, according to TKL (FSA) and without actuarial qualification myself, I'd say that's the best among annuities offering fixed interest. It may not be high according to your expectation but it's the highest available, beat all private financial institutions offering the same. If you have the money and invest yourself, you'd have to bear the risk-reward ratio yourself. I prefer to do that myself. As for you, you have to decide for yourself before CPF locks your funds in.

No details.

 

[Ramseth]

No details.

www.cpf.gov.sg

 

[QXD]

That's the art of saying everything and not meaning anything.

No details.

 

[Leckmichamarsch]

I did a simple calculation. If you barely meet the Minimum Sum Requirement of $123,000 whether it's a lump sum in your Retirement Account or a mixture lump sum plus property pledge, EVEN without the CPF Life you can withdraw about $700 plus per month from 65 onwards until your Retirement Account has dried up. That's about 15 years when you're already 80.

On the other hand, with CPF Life Plus when the monthly payout is the 2nd highest compared to the other options, you get paid about $600 plus until you die. It's not free. Your savings in your Retirement Account will be locked up until you die, and a large chunk of it will be used to pay the premium of your annuity.

At 80, it's worthwhile to take the risk that you will die any time soon, so it appears to me that CPF Life Plus is not really that helpful if you meet the CPF Minimum Sum in your RA.

What say you ?

As usual n esp with CPF, gahmen will make sure your money will be detained as long as possible so that Hoho Jinx can splurg them at low interest cost..........

 

[Leckmichamarsch]

I bought my house with cpf fund but I am given to understand shud I sell my private property, the accrued interests must be returned to cpf. I am already 63 & they still want to lock me in!

 

[mojito]

Hmmm... Exam question? Or you a do-gooder?

Are you trying to show, 1) under what circumstance would you be better off if you didn't buy CPF Life and DIY a similar product or 2) that somebody sold parliament a lemon and citizens are now screwed?

Can't really help much, but just want to understand your angle.

CPF only got OA, SA, MA. Got RA meh?

You said "savings in RA locked up until you die", then I got a problem with that. Uncomfortable with any attempt by the government to impound my money under such schemes. If I can prepay today all outstanding payments up to 80 years, is it reasonable for CPF to hold on to the balance (aka free gambling money)?

Normly I would close one eye, but after big cockups like ML, UBS, this government got no credibility. gluck friend.