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Thread: Which CPF plan to choose when reaching 55

  1. #1

    Default Which CPF plan to choose when reaching 55

    Got to start planning for the CPF RA (Retirement Account) as 55 is approaching.

    Which is a better option:
    20year draw down annuity or CPF Life (monthly payout till conk out)?

    Is it a wise move to top-up to meet the $139K minimum sum so that u can get a higher monthly payout?

  2. #2

    Default Re: Which CPF plan to choose when reaching 55

    my dad wise man he is choose CPF Life type, really die die have money one. less but more stable.
    宁愿遇见丢失幼崽的母熊,也不愿碰上做蠢事的愚人

  3. #3
    Senior Member Big Kahuna's Avatar
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    Default

    Depending how much to top up.....if u have spare cash then it's no brainer man...

  4. #4

    Default Re: Which CPF plan to choose when reaching 55

    Quote Originally Posted by Shizuma View Post
    my dad wise man he is choose CPF Life type, really die die have money one. less but more stable.
    Agree with this. Got survival money till death

  5. #5

    Default Re: Which CPF plan to choose when reaching 55

    Quote Originally Posted by Big Kahuna View Post
    Depending how much to top up.....if u have spare cash then it's no brainer man...
    Today also saw a brochure from POSB under SAIL - Single Premium plan underwritten by NTUC Income which offers a POTENTIAL yield of 4.61%. It gave 2 illustrations of a 55 yr old female investing $50K:
    1. After 10 yr at age 65 she gets a PROJECTED yearly payout of $6092 over 20yrs or she can opt for
    2. After 10yrs at age 65 she gets a PROJECTED lump sum of $74729

    Anyone got other schemes offered by banks or insurance companies, please share with all of us here.
    Thank you

  6. #6

    Default

    If die early how? Where the $ goes?
    | 5Diii | 24 ii | 40 | 24-70 ii | 24-105 | 70-200 F4 IS | 270 ii | 600EX-RT |

  7. #7

    Default Re: Which CPF plan to choose when reaching 55

    Quote Originally Posted by ahboy168 View Post
    If die early how? Where the $ goes?
    Will check this out with the Relationship Manager this weekend and let u know.

  8. #8

    Default Re: Which CPF plan to choose when reaching 55

    Quote Originally Posted by access View Post
    Will check this out with the Relationship Manager this weekend and let u know.
    I went to POSB yesterday and talked to their Personal Financial Manager.

    If konk-out along the way, it will be distributed like any bank account that u r holding.

    The min amount is $10K as advertised in the SAIL brochure. Hold it for 10 yrs and at the end of 10 yr then only u need to decide on which plan to choose : 1) lump sum of projected $74K or 2) 20 yr payout of $6K per yr. Yield is 1.6% FIXED + 3.0% PROJECTED = 4.6% pa Projected

    Later, I asked him if i want to buy for my children, then the min amount was lowered to $5K.

  9. #9

    Default Re: Which CPF plan to choose when reaching 55

    Sorry. Error in above post.
    Mixed up. It should read like this:

    Invest $50K for 10 yrs and at the end of 10 yr then only u need to decide on which plan to choose : 1) lump sum of projected $74K or 2) 20 yr payout of $6K per yr. Yield is 1.6% FIXED + 3.0% PROJECTED = 4.6% pa Projected

    The minimum amount to invest is $10K.

    Later, when I asked what's the minimum amount for children, the amount was lowered to $5K
    Last edited by access; 8th October 2012 at 10:53 PM. Reason: delete quote from previous post

  10. #10

    Default

    Too complicated ... Lucky I am still consider young now.
    | 5Diii | 24 ii | 40 | 24-70 ii | 24-105 | 70-200 F4 IS | 270 ii | 600EX-RT |

  11. #11

    Default

    Quote Originally Posted by access
    Sorry. Error in above post.
    Mixed up. It should read like this:

    Invest $50K for 10 yrs and at the end of 10 yr then only u need to decide on which plan to choose : 1) lump sum of projected $74K or 2) 20 yr payout of $6K per yr. Yield is 1.6% FIXED + 3.0% PROJECTED = 4.6% pa Projected

    The minimum amount to invest is $10K.

    Later, when I asked what's the minimum amount for children, the amount was lowered to $5K
    You mean that plan can use CPF retirement account to buy? If I am not wrong it is only applicable cash payment and to be bought before retirement.

    For CPF life, for ppl with dependents, just take the default one given by CPF. It should be the best in market. For those without dependents, just opt for the one that gives the highest payout, since no one will take the remaining money when you no longer around. The rest actually don't need to consider already

    As far as I know, there's no annuity that offers better returns than the CPF life at this point in time. If some RM or advisor tells you so, please READ the prints properly before signing.
    Last edited by wolfton; 11th October 2012 at 01:33 PM.
    "Time is often the best editor" - Alex Webb

  12. #12

    Default Re: Which CPF plan to choose when reaching 55

    Quote Originally Posted by wolfton View Post
    You mean that plan can use CPF retirement account to buy? If I am not wrong it is only applicable cash payment and to be bought before retirement.

    For CPF life, for ppl with dependents, just take the default one given by CPF. It should be the best in market. For those without dependents, just opt for the one that gives the highest payout, since no one will take the remaining money when you no longer around. The rest actually don't need to consider already

    As far as I know, there's no annuity that offers better returns than the CPF life at this point in time. If some RM or advisor tells you so, please READ the prints properly before signing.
    This plan is marketed by POSB under SAIL - Single premium. It is underwritten by NTUC Income. It was launched last year. Payment is by cash. Can't use CPF to pay for this.

  13. #13

    Default Re: Which CPF plan to choose when reaching 55

    i am currently voluntarily topping up my cpf accounts monthly as job's cpf contributions are irregular. hopefully, combined balances will be enough to meet min. sum. or larger balances to afford higher payouts of cpf annuity.

  14. #14

    Default Re: Which CPF plan to choose when reaching 55

    Quote Originally Posted by reachme2003 View Post
    i am currently voluntarily topping up my cpf accounts monthly as job's cpf contributions are irregular. hopefully, combined balances will be enough to meet min. sum. or larger balances to afford higher payouts of cpf annuity.
    Good that you try to build up your savings for your old age.

    Don't forget to transfer as much as possible from your Ordinary a/c to Special a/c to enjoy the higher interest. Keep sufficient amount in your Ordinary a/c for your housing and education if any.

  15. #15

    Default Re: Which CPF plan to choose when reaching 55

    pls remember, it is a one-way transfer. NO transfer back.

  16. #16

    Default Re: Which CPF plan to choose when reaching 55

    Why must we choose these kind of stupid options when it's our money to begin with? Give us the freedom to do whatever we want with our money!

  17. #17

    Default

    It is never our Money. It goes straight to some central account for mixing and clean up to become new money again for other use. Do think again before any cash "top up" ...yes one way traffic and remember rules can change anytime whether u like it or not.
    | 5Diii | 24 ii | 40 | 24-70 ii | 24-105 | 70-200 F4 IS | 270 ii | 600EX-RT |

  18. #18

    Default Re: Which CPF plan to choose when reaching 55

    Quote Originally Posted by Van Faniel View Post
    Why must we choose these kind of stupid options when it's our money to begin with? Give us the freedom to do whatever we want with our money!
    cos most ppl will BBB like no tomorrow if given absolute freedom.

  19. #19

    Default Re: Which CPF plan to choose when reaching 55

    major grouse of singaporeans!

  20. #20
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    Default Re: Which CPF plan to choose when reaching 55

    Quote Originally Posted by access View Post
    Got to start planning for the CPF RA (Retirement Account) as 55 is approaching.

    Which is a better option:
    20year draw down annuity or CPF Life (monthly payout till conk out)?

    Is it a wise move to top-up to meet the $139K minimum sum so that u can get a higher monthly payout?


    My suggestion is, don't listen to what others say, but make a trip to CPF office and speak to an officer there. Prepare a list of questions that you want answers.

    You will be surprised at what you hear! I had a choice (I am older and not compulsory) so I decided not to sign for any of the scheme. You can draw your own conclusion from my decision.

    If you must choose, speak to CPF before making a choice.

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