Talking Point >>> Is your CPF enough for retirement?

[Hubwee]

Can ask Government to loan 400 k when one reaches 65 , pay back 2k per month until one dies ....

[Ct3833]

I dont quite like this scheme as they build in profit into the running organization which should not be the case. But in all fairness ,  if one tries  hard , he will soon notice that no other  financial institutions could  offer similar or better package than this.  Do post back here if any bors could find a better package than this, I am still evaluating  alternative options while leveraging on CPFLife as one of my primary source  retirement income. 

  

[Ct3833]

4 hours ago, Kopites said:

What I don't understand is 65 300k to 400k 100k different the payout only 500 dollar per month higher?

This is correct, the 100k at 65 will be distributed evenly into 6,000/year over 28 years(65 to 93) , this translates into 168,000 at the end of 93 years provided one could live that long, dont forget our average life expectancy is only 85, only  those long life folks will have more to gain. The 100k at 65 , while will depict slowly, the remaining principal sum will continue to earn 4% interest, it is why they can afford 168k. 
  

[Throttle2]

CPF.....feel so rich looking at my statement. 😁✌️

Edited November 28, 2020 by Throttle2

[Mustank]

On 11/28/2020 at 4:10 PM, Angcheek said:

Actually i dont understand this table ... 

 

If at 55 i dont have 120k ... so cpf expect me to be able to top it up to 147k ? Where to find extra 10k for cpf for 5yrs . 

 

I thought when your 120k in your ra get 4% interest. Just by 4% interest alone, can hit the 147 Liao mah

dontthink need to top up 

[Jman888]

24 minutes ago, Mustank said:

I thought when your 120k in your ra get 4% interest. Just by 4% interest alone, can hit the 147 Liao mah

dontthink need to top up 

yah should be interest earn base on the $120k.

[Kopites]

Cpf life imo is a good scheme. Don't treat it like any other financial instrument. Don't be too bother with the shift in interest rate. Take it as a form of saving. 

Such "enforced" saving not only good on a personal level but also less of a burden toward the society. 

Retirement era I can proudly proclaim i am independent living in my own accounts.

My opinion. Don't rant at me...😄

Edited November 30, 2020 by Kopites

[Angcheek]

1 hour ago, Mustank said:

I thought when your 120k in your ra get 4% interest. Just by 4% interest alone, can hit the 147 Liao mah

dontthink need to top up 

At 55 they will lock in your cpf to RA for 10 yrs . If you have 120k at 55, of course no problem. If not , at 60 ... i think you need to top up to 147k to "enjoy" the same monthly draw after 65. Else there is no point to say it in the first place ... just my thought.  

Edited November 30, 2020 by Angcheek

[Angcheek]

1 hour ago, Kopites said:

Cpf life imo is a good scheme. Don't treat it like any other financial instrument. Don't be too bother with the shift in interest rate. Take it as a form of saving. 

Such "enforced" saving not only good on a personal level but also less of a burden toward the society. 

Retirement era I can proudly proclaim i am independent living in my own accounts.

My opinion. Don't rant at me...😄

Good and bad to me. 

Bad is you cant get any INT for the RA for 16yrs. Also meaning less money pass over to ur children if u mati early. 

Good is that , 不孝子children or tiong bu cant suck your money away . 

😄🍻 i need money for my beer n ciga 😭

[Didu]

9 minutes ago, Angcheek said:

At 55 they will lock in your cpf to RA for 10 yrs . If you have 120k at 55, of course no problem. If not , at 60 ... i think you need to top up to 147k to "enjoy" the same monthly draw after 65. 

When you say "lock in" at 55, does it mean the person cannot use his RA to top up his spouse's SA? (Assuming spouse has not reach 55)

[Angcheek]

1 minute ago, Didu said:

When you say "lock in" at 55, does it mean the person cannot use his RA to top up his spouse's SA? (Assuming spouse has not reach 55)

You cannot use anything from RA. If you have balance in OA , can trf over to wife SA acct only. 

[Kopites]

1 hour ago, Angcheek said:

Good and bad to me. 

Bad is you cant get any INT for the RA for 16yrs. Also meaning less money pass over to ur children if u mati early. 

Good is that , 不孝子children or tiong bu cant suck your money away . 

😄🍻 i need money for my beer n ciga 😭

You can always get those insurance plan that leave a "legacy" to your children. Or your propert(ies). 😄

 

[Ct3833]

10 hours ago, Kopites said:

Cpf life imo is a good scheme. Don't treat it like any other financial instrument. Don't be too bother with the shift in interest rate. Take it as a form of saving. 

Such "enforced" saving not only good on a personal level but also less of a burden toward the society. 

Retirement era I can proudly proclaim i am independent living in my own accounts.

My opinion. Don't rant at me...😄

I agree with you, i could not find a better and  safer financial instruments that could provide the same payout.  But depending on cpflife alone is not gling to be enough to support one's retirement.  

Edited November 30, 2020 by Ct3833

[kobayashiGT]

I think CPF is good for the majority that has no sense of responsibility in planning their own retirement.

 

There are definitely better instruments out there that can have more returns and all. But not all people will have the effort to learn the rope and have the discipline. CPF have its flaws also lah. like the ever-growing of the age limit to withdraw and all.

But the intention is good for the people. This I approve.

[Wt_know]

20 minutes ago, kobayashiGT said:

I think CPF is good for the majority that has no sense of responsibility in planning their own retirement.

1M65 said just throw $130k in CPF and "forget about it" ...

yes ... just dont think dont see dont touch and totally forget about it

[Throttle2]

2 hours ago, Ct3833 said:

I agree with you, i could not find a better and  safer financial instruments that could provide the same payout.  But depending on cpflife alone is not gling to be enough to support one's retirement.  

Yeah.

Depending on CPF Life alone does nothing but at best guaranteeing a seat in your local kopitiam sipping $1.20 coffee and reminiscing old hero stories for the rest of your retirement years.

[Ct3833]

Anyone who is keen may read on. I am not trying to sell CPFlife, we have to  no choice but to participate anyway. The more we understand the better we can decide if one should top up his CPFlife account to max or to buy other private retirement policies .

One point to note is no private instruments gurantee 4% returns. And the pay out from private instruments is not perpetual if one is lucky enough to outlife his policy. 

 

https://dollarsandsense.sg/cpf-life-private-annuity-plan-pros-cons-choosing-either-option-for-retirement/

[Roh96]

So i guess the best thing to do at 55 is not to do anything, don't think about your CPF, keep on working. Tio bo?