Annuity starts after one died?

[Apollo]

http://www.straitstimes.com/Latest%2BNews/...ory_205664.html

 

live to 84 years old and get pay out? dream on bro

 

A boy born in 2006 can expect to live an average of 78 years, compared to 76.6 years for a boy born in 2003.

A girl born that year can expect to live an average of 82.8 years, up from 81.6 years for one born in 2003.

The longer life expectancies are borne out in the latest figures released on Tuesday by the Singapore Department of Statistics (DOS).

 

http://www.straitstimes.com/Latest%2BNews/...ory_205661.html

 

 

Here's how CPF Life works :

When participants join the scheme at age 55, their Minimum Sum (MS) cash balances will be split into two parts - a larger part that remains in the Retirement Account (RA) and a smaller part, called the Refundable Premium (RP).

The RP is where money will be drawn down and paid out to a CPF member each month for as long as he lives.

To ensure the scheme's flexible, participants can choose when their Longevity insurance starts.

That is, they can choose for the payouts to start either at age 65, 70, 75, 80, 85 or 90. If they do not do so, they will be placed into the default 'Refund 80' plan with the payout starting at age 80.

Edited February 12, 2008 by Apollo

[Snookium]

Since the scheme is fair ,so can i dun join?

[Cheerios]

yes you can if you fall under the category of exclusions most of them are

 

but one is quite fair.. you already have purchased an annuity plan urself

 

our garment very fair one.. who says not fair

[Gantan88]

You cannot dun join. Now they are giving you 3 oranges. 1 from country X, 1 from country Y and 1 from country Z, and they ask (force) your to choose 1 orange.

 

I HATE eating orange.

[Fondue]

I totally do not understand how this works and the purpose of it

 

If I can get highiest payout by starting at age 65, why wait till 80 ??

 

Think I need to attend a Financial PLanner course inorder to make any sense out of this .... is there something wrong with me ? I'm finding it more and more difficult to understand the policies drafted by our highly paid Civil Servants

[Nolicense]

the hen already got millions.. joining the annuity is just for show. the few hundred dollars a month good for wipe backside for those with millions

[Comfy]

I'm finding it more and more difficult to understand the policies drafted by our highly paid Civil Servants

 

cannot convince then confuse u lor...

[Icekitten]

I suppose the mthly payout from age 65 will be significantly lower than the mthly payout from age 80?

 

I see only one thing out of this :

 

Just another scheme where the 'ignorant, uninformed or incapable' are automatically shoved into the default "from age 80" payout scheme and their money being tied up for an extra 15 yrs because they fail to make a choice. Usually the ppl who need the money the most.

[Apollo]

you should read the article again.. it's the LI scheme fr the familee.

[Apollo]

600 agent smith already say it's guud for u.

[Icekitten]

Icic. The lower payout as age increases is because more money is 'left for beneficiaries after death'....

 

But still...ideally the default payout age should be age 65 and ppl can opt to delay payment if they want to leave money to their families thru the govt. So those who dunno and by default get payout at age 80 and die without leaving family behind (as is often the case for the uninformed elderly), the money goes to....

[Apollo]

aburthen... u call LI scheme for wat?

[Watwheels]

I think 5~10 yrs down the road, policy will change yet again.

 

No point in understanding the whole thing cos we have no say in it anyway.

 

Ironic isn't? Our money yet it's beyond our control.

[Megaweb]

Annuity should be opt optional. Those parent with few grown up children, they can get support from them w/o annuity.

[Titanium]

I totally do not understand how this works and the purpose of it

 

If I can get highiest payout by starting at age 65, why wait till 80 ??

 

Think I need to attend a Financial PLanner course inorder to make any sense out of this .... is there something wrong with me ? I'm finding it more and more difficult to understand the policies drafted by our highly paid Civil Servants

 

Hello... i think we need to have at least a PHD to understand all this.

 

financial planner course is not enough...

[Miles]

The country has an aging population.

With defacto CPF withdrawal age at 55 (used to be), by year X. The country might be depleted of cash since the aging population starts to withdraw large sums of their cash from the fund, when there is not enough younger population to contribute to the fund to balance the account. Foreigners dont contribute to CPF anymore. This problem is not unique to this country. Many European countries are facing this problem with aging population and their own pension scheme.

 

So, to alleviate this potential crisis, a scheme was created to delay the withdrawal of that money to 65 or 70. But that is not enough because eventually, the population will reach that age. So, they start selling the insurance premium that guarantees payout till death and that premium is another instrument to offset the cash outflow. It also relieve the gov from the responsibility of the population's welfare as the insurance company, having collected the premium, will take care of them.

 

But how do you convince the voters that the new scheme works,

1. show statistics that life expectancies increases. Remember the 102 years old woman featured in the speech?

2. through the media, hard sell the idea.

3. encourage the population to work till 70, if not older. (this solution also solve the lack of manpower in future when there is less younger workforce and avoid having to rely on foreign labour/talent)

4. legislate retirement age so that employers has to allow employees to retire later.

5. by delaying retirement age, it also solves the problem of the retirees having to withdraw their CPF early.

 

But how one look at the whole thing is another issue. Will this solution work to solve the potential crisis? It remains to be seen. Dont be surprise that in future, another new scheme is created to correct the probable flaw in this solution.

[Nolicense]

the cpf scheme is not a welfare system. where did you get the idea that there is not enough younger population to contribute to the fund to balance the account? this system is not funded by the younger generation. it is self funded. there is no perpetual payment, at some point it gets to zero, you don't get anymore payment. and the system the gahmen is changing is so that the zero point will never be reached because you die first. do you get it?

[Apollo]

too cheem... i only know they more keen to help banks fr gg under the hammer then peasants who kena hammered by inflation.