interesting. my 2cents.
RA, CPF life basic, CPF life standard are different animals.
and when talking about CPF life, please be more specific whether it is about CPF life basic or CPF life standard.
if choose CPF life standard, there will be no more money in RA to earn interest.
if choose CPF life basic, then there will be money leftover in RA and i THINK it will continue to earn interest after 65.
LSH was talking about CPF life standard. so i am not sure why he was talking about earning interest on annuity. (perhaps he is comparing to CPF life basic?)
this is an article.
https://www.ifa.sg/cpf-life-standard-is-the-worst/
the interesting part OF the article is this:
"
On the other hand for CPF Life Basic, not all the entire CPF RA will be used to purchase the annuity. An amount will still be left in CPF RA which will be drawn down from 65 until age 90. From 90 years old onwards, the CPF Life annuity will kick in. Hence, under CPF Life Basic, it is a deferred annuity starting at age 90."
if that is so, then the annuity of CPF life basic is subsidising CPF life standard of the ones who live beyond 85(?). afterall how many will live beyond 90.
amber:
We need to NOTE that CPF board pays interest for the minimum sum in your RA from age 55 to 65. Thereafter, CPF will not pay you any interest in your REDUCING BALANCE amount in your RA at age 65 onward when you start to draw down from your RA.
any link? i think this statement is the one that sets off the whole exchange for the past few pages