https://www.cpf.gov.sg/Members/FAQ/s...ement/cpf-life
Q. Where will the extra interest be paid to after I join CPF LIFE?
A. If you have chosen the
CPF LIFE Standard Plan or CPF LIFE Escalating Plan (available from January 2018), the
extra interest will be paid into the Lifelong Income Fund. By paying the extra interest into the Lifelong Income Fund, you will be able to enjoy a more stable payout for the rest of your life. The extra interest will be pooled, and factored into your monthly CPF LIFE payouts.
If you have chosen the
CPF LIFE Basic Plan, we will pay the
extra interest earned into your Retirement Account and pay it to you in the year it is earned as part of your monthly CPF LIFE payout. When your combined balances fall below $60,000, the extra interest will reduce. This reduces your monthly CPF LIFE payouts gradually.
so it looks like premium paid for CPF life standard also earn interest except that the interest goes to Lifelong Income Fund, which is where LSH assume wrongly that it is not paid? hence his calculation show that a person on CPF life standard lose a lot on interest.
and this may also explains amber's "The drawn out appears to not include any interest claimed by CPF Board to have included in the payout."
perhaps LSH could have written it better, "why CPF life basic is better than CPF life standard."