Any Ceiling for contribution of CPF OA?

[heehee]

You join in 2016 Sep & keep haggling teddybear, why?
I believe he posted many more useful posts than you (actually you didn't contribute any other than trying to pick a quarrel with him). So your aim is just to drive him away so that he will stop posting?

When someone trolls with vulgarities and start flaming, I return in kind.
But this is ULTIMATE! HE CURSED HIMSELF.
No need to return in kind this time.

[Arcachon]

https://heartlandboy.com/reduce-your...ing-up-scheme/

[Arcachon]

https://heartlandboy.com/money-withd...our-cpf-at-55/

[Arcachon]

https://heartlandboy.com/money-withd...our-cpf-at-55/

[Arcachon]

Birth year - BY
Full Retirement Sum FRS
Basic Retirement Sum BRS

BY-------FRS-------BRS
1961 $161,000 $80,500
1962 $166,000 $83,000
1963 $171,000 $85,500
1964 $176,000 $88,000
1965 $181,000 $90,500

28-Feb-19 24-Aug-17 553

[teddybear]

Wow! FRS keep increasing by $5,000 for every later year you are born!
So for those born in year 2000, they have to prepare $356,000 for FRS???

Birth year - BY
Full Retirement Sum FRS
Basic Retirement Sum BRS

BY-------FRS-------BRS
1961 $161,000 $80,500
1962 $166,000 $83,000
1963 $171,000 $85,500
1964 $176,000 $88,000
1965 $181,000 $90,500

[Arcachon]

Wow! FRS keep increasing by $5,000 for every later year you are born!
So for those born in year 2000, they have to prepare $356,000 for FRS???

For those who still don't believe Money is printed by the Bank control by the Government, they are going to have the best Shock in their Life.

Interest Earned

Savings in the SA and RA earn an interest rate of up to 6%*.

* Your CPF savings in the Ordinary Account (OA) earn guaranteed interest rates of 2.5% per year, while savings in the SA, Medisave Account and RA currently earn interest rates of 4% per year. The first $60,000 of your combined CPF balances, of which up to $20,000 comes from your OA, earn an additional 1% interest per year. Since 2016, an additional 1% interest is paid on the first $30,000 of combined CPF balances for all members aged 55 and above.

https://www.cpf.gov.sg/Members/Schem...cheme#Item1739

[Arcachon]

Look at the small fishes and you will sure miss the big one.

[teddybear]

You are right. If people focus on earning 6% just for $30k (eligible) only and miss the forest, they are doomed!

Look at the small fishes and you will sure miss the big one.

For those who still don't believe Money is printed by the Bank control by the Government, they are going to have the best Shock in their Life.

Interest Earned

Savings in the SA and RA earn an interest rate of up to 6%*.

* Your CPF savings in the Ordinary Account (OA) earn guaranteed interest rates of 2.5% per year, while savings in the SA, Medisave Account and RA currently earn interest rates of 4% per year. The first $60,000 of your combined CPF balances, of which up to $20,000 comes from your OA, earn an additional 1% interest per year. Since 2016, an additional 1% interest is paid on the first $30,000 of combined CPF balances for all members aged 55 and above.

https://www.cpf.gov.sg/Members/Schem...cheme#Item1739

[Arcachon]

You are right. If people focus on earning 6% just for $30k (eligible) only and miss the forest, they are doomed!

Now no time to sing song.

[minority]

You are right. If people focus on earning 6% just for $30k (eligible) only and miss the forest, they are doomed!

those who believe your shit lies. are worst then doomed. listen you ones are like commit sucide..

[teddybear]

minority,
Wow! You BIGGEST LIAR and BULLSHITTER still so THICK SKIN to be around?!

minority,
You expect people to believe you for claiming that CPF Life give you 7.5% p.a. return?!
AND
the fact that Olam did not pay any taxes on their Capital Injection means that minority you are ACCUSING Olam (majority controlled by Temasek) of RIGGING THEIR BOOK so that it did not pay any taxes on their Capital Injection! (because you CLAIMED that all companies including PUB must pay taxes on Capital Injection!) Wow! Holy cow!

I already give you many chance to retract your LIES but you refused to do so and even dare to asset these FAKE CLAIMs again!

So what does this mean? minority is the BIGGEST LIAR and BULLSHITTER here! Proven!

those who believe your shit lies. are worst then doomed. listen you ones are like commit sucide..

[teddybear]

Has anybody run a calculation for CPF Life Basic Plan? The monthly payout + Bequest does not seem to tally with 4% p.a. interest (if say you die at 75 years old)?

For example, using the following webpage
https://make-money-secrets.blogspot....payreturn.html

I key in the following:
CPF Life Amount at 55 years old ($)
166000
Age you expected to live until in (Years)
75
CPF Life desired return you would like (%)
4
Bequest you want to leave behind ($)
187709
CPF Life Amount at 65 years old Calculated
258811.27
CPF Life payout at desired return Calculated
1345.57

So, if CPF Life Basic is paid 4% p.a. interest into RA, then the monthly CPF Life Basic payout should be $1345 p.m., not $1109-1224 p.m. as given by CPF Life payout estimator:
https://www.cpf.gov.sg/eSvc/Web/Sche...ayoutEstimator
From there, we were told that the Bequest is $188k-199k.

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."

[Arcachon]

Has anybody run a calculation for CPF Life Basic Plan? The monthly payout + Bequest does not seem to tally with 4% p.a. interest (if say you die at 75 years old)?

For example, using the following webpage
https://make-money-secrets.blogspot....payreturn.html

I key in the following:
CPF Life Amount at 55 years old ($)
166000
Age you expected to live until in (Years)
75
CPF Life desired return you would like (%)
4
Bequest you want to leave behind ($)
187709
CPF Life Amount at 65 years old Calculated
258811.27
CPF Life payout at desired return Calculated
1345.57

So, if CPF Life Basic is paid 4% p.a. interest into RA, then the monthly CPF Life Basic payout should be $1345 p.m., not $1109-1224 p.m. as given by CPF Life payout estimator:
https://www.cpf.gov.sg/eSvc/Web/Sche...ayoutEstimator
From there, we were told that the Bequest is $188k-199k.

Estimator

https://www.cpf.gov.sg/Members/other...use#Disclaimer

1 Currently, your CPF savings in the Ordinary Account earn a guaranteed interest rate of 2.5% per year, while savings in the Special, Medisave, and Retirement Accounts earn interest rates of 4% per year. The first $60,000 of your combined CPF balances, of which up to $20,000 from your Ordinary Account, earns an extra 1% interest per year. Combined balances refer to the total balances in your Ordinary, Special, Medisave and Retirement Accounts, including the annuity premiums for CPF LIFE less any payouts made.

https://www.cpf.gov.sg/Members/Schem...avings-from-55

Try not to look for the small fishes.

[teddybear]

Why CPF Board's online CPF Life Payout Estimator keep giving lower estimated payout p.m.?

I was tipped off and given these screenshots of 2 calculations for same Retirement Account Balance = $166,000, one calculation made on 12 Feb 2017, and the other on 15 Aug 2017 (see attached images).

As you can see, on 12 Feb 2017, estimated payout:
a) for CPF Life Standard = $1,236 - $1,371
b) for CPF Life Basic = $1,166 - $1,296

However, when the person use the same calculator again on 15 Aug 2017, estimated payout has dropped to following:
a) for CPF Life Standard = $1,173 - $1,292
b) for CPF Life Basic = $1,109 - $1,224

Beware! Better don't rely on CPF Life's payout for your retirement (because payout may keep dropping)!

Estimator

https://www.cpf.gov.sg/Members/other...use#Disclaimer

1 Currently, your CPF savings in the Ordinary Account earn a guaranteed interest rate of 2.5% per year, while savings in the Special, Medisave, and Retirement Accounts earn interest rates of 4% per year. The first $60,000 of your combined CPF balances, of which up to $20,000 from your Ordinary Account, earns an extra 1% interest per year. Combined balances refer to the total balances in your Ordinary, Special, Medisave and Retirement Accounts, including the annuity premiums for CPF LIFE less any payouts made.

https://www.cpf.gov.sg/Members/Schem...avings-from-55

Try not to look for the small fishes.

[Arcachon]

Why CPF Board's online CPF Life Payout Estimator keep giving lower estimated payout p.m.?

I was tipped off and given these screenshots of 2 calculations for same Retirement Account Balance = $166,000, one calculation made on 12 Feb 2017, and the other on 15 Aug 2017 (see attached images).

As you can see, on 12 Feb 2017, estimated payout:
a) for CPF Life Standard = $1,236 - $1,371
b) for CPF Life Basic = $1,166 - $1,296

However, when the person use the same calculator again on 15 Aug 2017, estimated payout has dropped to following:
a) for CPF Life Standard = $1,173 - $1,292
b) for CPF Life Basic = $1,109 - $1,224

Beware! Better don't rely on CPF Life's payout for your retirement (because payout may keep dropping)!

Did you read the Disclaimer, if not please read.

[teddybear]

What disclaimer?

Did you read the Disclaimer, if not please read.

[Arcachon]

All government website got this.

https://www.cpf.gov.sg/Members/other...use#Disclaimer

The Contents of this Website are provided on an "as is" and “as available” basis without warranties of any kind, and are of a general nature. The Contents are made available for your general information only. While every effort is made to ensure that the Contents herein are consistent with existing law and practice, you are advised to refer to the relevant legislation to be certain of your legal entitlements and obligations and should seek professional advice at all times before making any decision based on any such information or materials. Neither CPFB nor any third party content providers is responsible for any errors or omissions, or for the results obtained from the use of the information and material in this Website or the tools contained in this Website.​

[Arcachon]

All government website got this.

https://www.cpf.gov.sg/Members/other...use#Disclaimer

The Contents of this Website are provided on an "as is" and “as available” basis without warranties of any kind, and are of a general nature. The Contents are made available for your general information only. While every effort is made to ensure that the Contents herein are consistent with existing law and practice, you are advised to refer to the relevant legislation to be certain of your legal entitlements and obligations and should seek professional advice at all times before making any decision based on any such information or materials. Neither CPFB nor any third party content providers is responsible for any errors or omissions, or for the results obtained from the use of the information and material in this Website or the tools contained in this Website.​

When I go any Government office I don't ask one but ask many to the same question.

Same thing appear to RES because they only need to know 60% to pass the RES exam, you might be asking the 40% they don't know.

[hopeful]

Why CPF Board's online CPF Life Payout Estimator keep giving lower estimated payout p.m.?

I was tipped off and given these screenshots of 2 calculations for same Retirement Account Balance = $166,000, one calculation made on 12 Feb 2017, and the other on 15 Aug 2017 (see attached images).
.......

this is what i think:

DOB 1963-03-01 ; computed date 2017-02-12 ; age is 53.99
53.99 is less than 55, hence has the full 10 years (65-55) to earn interest in RA.

DOB 1962-01-01 ; computed date 2017-08-15 ; age is 55.66
55.66 is more than 55, number of years in RA to earn interest is (65-55.66) is 9.34 years.
hence account for the lower payout.

if play with the calculator, computed date today (eg 2017-08-25) and use any DOB (eg 1966,1967) such that the difference between computed date and DOB is <55, the payout is the same. (fixed maximum 10 years to earn interest)

if difference between computed date and DOB > 55, the payout become smaller as less. less years in RA to earn interest
payout of 1961 > 1960 > 1959 etc

[teddybear]

What you said makes sense! Let me check again:

Computed on 12 Feb 2017, DOB 1 Mar 1963, estimated payout:
a) for CPF Life Standard = $1,236 - $1,371
b) for CPF Life Basic = $1,166 - $1,296

Computed on 15 Aug 2017, DOB 1 Jan 1962, estimated payout:
a) for CPF Life Standard = $1,173 - $1,292
b) for CPF Life Basic = $1,109 - $1,224

So I use the CPF Life payout online calculator to calculate for say DOB 1 Aug 1964 (< 55 years old) today (25 Aug 2017), the estimated payout is:
a) for CPF Life Standard = $1,216 - $1,346
b) for CPF Life Basic = $1,149 - $1,275

I try again for say DOB 1 Jan 1965 (< 55 years old) today (25 Aug 2017), the estimated payout is:
a) for CPF Life Standard = $1,196 - $1,321
b) for CPF Life Basic = $1,132 - $1,253

So the CPF Life Payout calculator is giving strange figures!
DOB 1965 Jan (younger) getting less payout p.m. than DOB 1964 Aug for same Retirement Account balance = $166,000!
So more years to go in RA does not give you more payout (you may get less). This is like buying a chance on the turn-table and you may get more or you may get less depending on your luck!

this is what i think:

DOB 1963-03-01 ; computed date 2017-02-12 ; age is 53.99
53.99 is less than 55, hence has the full 10 years (65-55) to earn interest in RA.

DOB 1962-01-01 ; computed date 2017-08-15 ; age is 55.66
55.66 is more than 55, number of years in RA to earn interest is (65-55.66) is 9.34 years.
hence account for the lower payout.

if play with the calculator, computed date today (eg 2017-08-25) and use any DOB (eg 1966,1967) such that the difference between computed date and DOB is <55, the payout is the same. (fixed maximum 10 years to earn interest)

if difference between computed date and DOB > 55, the payout become smaller as less. less years in RA to earn interest
payout of 1961 > 1960 > 1959 etc

[hopeful]

....

So the CPF Life Payout calculator is giving strange figures!
DOB 1965 Jan (younger) getting less payout p.m. than DOB 1964 Aug for same Retirement Account balance = $166,000!
So more years to go in RA does not give you more payout (you may get less). This is like buying a chance on the turn-table and you may get more or you may get less depending on your luck!

strange, i played around with the calculator yesterday and used the DOB 1/1/1965 and 1/1/1967 for ages <55.
the payout are similar (a few dollars difference) and the bequests are similar (tens of dollars difference).

this is a shot in the dark.
perhap your results indicate they take into account life expectancy. those born in 1965 live a little longer than those born in 1964, hence lower payout.
or even maybe they group life expectancy in groups, 1960-1964, 1965-1969 etc. minor difference in the group (eg 1963 vs 1964) and major difference between the group (1964 vs 1966).
i have not plugged in this figures yet.

[teddybear]

What you said is perfectly possible since they are projecting the younger generation to live longer and longer and hence their payout will get less and less..................

Also, according to the webpage you referred us to, although it mentioned that for CPF Life Basic Plan you money will earn 4% p.a. and then pay out to you monthly from there till you are 90 years old then you enter the Annuity scheme, but from my calculation I am not getting 4% p.a. interest for CPF Life Basic Plan if I assume a person die at 75, 80, and 85 years old.

Q What happens if I choose the CPF LIFE Standard Plan?
A When you join the CPF LIFE Standard Plan, we will deduct all the savings in your Retirement Account as the annuity premium at the point of policy issuance. The premiums deducted will be paid into the Lifelong Income Fund. You will receive monthly payouts from the Lifelong Income Fund from your payout start age for as long as you live.

Q What happens if I choose the CPF LIFE Basic Plan?
A When you join the CPF LIFE Basic Plan, w e will deduct about 10% of your Retirement Account savings for the annuity premium at the point of policy issuance. The actual percentage will depend on your age and gender. We will inform you on the amount deducted when your policy is issued. The premium deducted will be paid into the Lifelong Income Fund. The rest of your Retirement Account savings will stay in your Retirement Account.
You will receive monthly payouts from the savings in your Retirement Account from your payout start age until one month before you reach 90 years old. Once you reach 90 years old, you will continue to receive monthly payouts from the Lifelong Income Fund for as long as you live.
Payouts under your Basic Plan will be reduced when the combined balances in your CPF accounts,
including the amount committed to CPF LIFE, falls below $60,000. This is due to the reduction in any extra interest earned and paid to you.

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.

strange, i played around with the calculator yesterday and used the DOB 1/1/1965 and 1/1/1967 for ages <55.
the payout are similar (a few dollars difference) and the bequests are similar (tens of dollars difference).

this is a shot in the dark.
perhap your results indicate they take into account life expectancy. those born in 1965 live a little longer than those born in 1964, hence lower payout.
or even maybe they group life expectancy in groups, 1960-1964, 1965-1969 etc. minor difference in the group (eg 1963 vs 1964) and major difference between the group (1964 vs 1966).
i have not plugged in this figures yet.

[cbsh38584]

To get the same CPF life ($166k) payout of est $1100 to $1300. You need to buy from private insurance annuity plan $300k to $350k to get a projected payout of $1100 to $1300. Remember it is projected. Not guarantee. The projected payout will change (so call shift goal post - up or down) according to their investment return.

CPF life annuity plan premium $166k - To get payout est 1100 to $1300
Private insurance annuity plan premium $300k to $350k - To get payout est $1100 to $1300
So CPF life is better annuity plan. I discussed with my agent (from Charles Monat) None of the private insurance can match CPF life payout. FYI, they even cannot guarantee
the min 2.5% of the CPF-OA interest for any of their endowment plan using CPF OA. So they totally stop selling it.

FYI, Tokio marine did launch a Annuity plan insurance early 2012. Let say at age 55. You pay $100k each for 5 yrs ( total 500k). Lock in for 10 yrs. At age 65. U wil get
projected payout of $33k/yr or $2.7k for life. If u divide by 500k by 3 (est 166k). The payout for premium 166k (CPF life premium) is only $930/mth. FYI, they no longer
selling this product. They launch the latest newer annuity plan (2017) which have a lower payout against the old annuity plan in 2012 due to mkt investment condition. Tokio marine also "shift goal post" to ensure it long term sustainability .


Why Govt need to shift goal post ?
Our govt needs to change the rules or conditions in order for our CPF system to be sustainable in long run. CPF life is not for the Richs/caplable ones ) to benefits the guarantee high interest rate they will enjoy if they leave untouch for legacy ( an amount of money or property left to someone in a will ) propose.


Just look at our STI index components. They needs to "shift the goal post " to kick out the bad ones like Noble , OLAM , Sembmarine etc.
They replace the better ones like Jardine Matheson Holdings Limited, Thai Beverage Public Company Limited etc. If nothing is being done,
STI index will be < 2000 & that will create a Bearish mood among S'porean investors which may affect consumers report.

It is the same as Schroder Asian growth Fund. In the early 2000, their TOP 10 HOLDINGS are most BHP , Rio Tinto, China gold mining, China CNOOC
to reflect the bullist sector on Mining & energy. It is link to China Olympic 2008 which China needs to spend on their infrastructure.
Look at their TOP 10 HOLDINGS today. It is mostly of consumer stocks like Alibaba , Tencent , AIA , Samsung etc. So far their ave long term return est 6%-7%.
If they don't "Shift the goalpost" by shifting "SUNSET sector". Their fund would probably close down due to it prolong underperforming or negative return.

Even our House tiny Ants also need to "shift goal post" to survive. I terminate the ants at location "A". They eventually shift to location "B" & then "c" to survive.
Never ending pest in my house.

CPF life is mostly for S'porean who do not know how to plan for their retirement when young. They failed through bad investment, bad spending habits etc. They will
still has some min sum for retirement when turn 65 which is totally not enough at all.

[cbsh38584]

To get the same CPF life ($166k) payout of est $1100 to $1300. You need to buy from private insurance annuity plan $300k to $350k to get a projected payout of $1100 to $1300. Remember it is projected. Not guarantee. The projected payout will change (so call shift goal post - up or down) according to their investment return.

CPF life annuity plan premium $166k - To get payout est 1100 to $1300
Private insurance annuity plan premium $300k to $350k - To get payout est $1100 to $1300
So CPF life is better annuity plan. I discussed with my agent (from Charles Monat) None of the private insurance can match CPF life payout. FYI, they even cannot guarantee
the min 2.5% of the CPF-OA interest for any of their endowment plan using CPF OA. So they totally stop selling it.

FYI, Tokio marine did launch a Annuity plan insurance early 2012. Let say at age 50. You pay $100k each for 5 yrs ( total 500k). Lock in for 10 yrs. At age 65. U wil get
projected payout of $33k/yr or $2.7k for life. If u divide by 500k by 3 (est 166k). The payout for premium 166k (same as CPF life premium) is only $930/mth. FYI, they no longer
selling this product. They launch the latest newer annuity plan (2017) which have a lower payout against the old annuity plan in 2012 due to mkt investment condition. Tokio marine also "shift goal post" to ensure it long term sustainability .


Why Govt need to shift goal post ?
Our govt needs to change the rules or conditions in order for our CPF system to be sustainable in long run. CPF life is not for the Richs/caplable ones ) to benefits the guarantee high interest rate they will enjoy if they leave untouch for legacy ( an amount of money or property left to someone in a will ) propose.


Just look at our STI index components. They needs to "shift the goal post " to kick out the bad ones like Noble , OLAM , Sembmarine etc.
They replace the better ones like Jardine Matheson Holdings Limited, Thai Beverage Public Company Limited etc. If nothing is being done,
STI index will be < 2000 & that will create a Bearish mood among S'porean investors which may affect consumers report.

It is the same as Schroder Asian growth Fund. In the early 2000, their TOP 10 HOLDINGS are most BHP , Rio Tinto, China gold mining, China CNOOC
to reflect the bullist sector on Mining & energy. It is link to China Olympic 2008 which China needs to spend on their infrastructure.
Look at their TOP 10 HOLDINGS today. It is mostly of consumer stocks like Alibaba , Tencent , AIA , Samsung etc. So far their ave long term return est 6%-7%.
If they don't "Shift the goalpost" by shifting "SUNSET sector". Their fund would probably close down due to it prolong underperforming or negative return.

Even our House tiny Ants also need to "shift goal post" to survive. I terminate the ants at location "A". They eventually shift to location "B" & then "c" to survive.
Never ending pest in my house.

CPF life is mostly for S'porean who do not know how to plan for their retirement when young. They failed through bad investment, bad spending habits etc. They will
still has some min sum for retirement when turn 65 which is totally not enough at all.

FYI, Tokio marine did launch a Annuity plan insurance early 2012. Let say at age 50. You pay $100k each for 5 yrs ( total 500k). Lock in for 10 yrs. At age 65. U wil get
projected payout of $33k/yr or $2.7k for life. If u divide by 500k by 3 (est 166k). The payout for premium 166k (CPF life premium) is only $930/mth

[minority]

To get the same CPF life ($166k) payout of est $1100 to $1300. You need to buy from private insurance annuity plan $300k to $350k to get a projected payout of $1100 to $1300. Remember it is projected. Not guarantee. The projected payout will change (so call shift goal post - up or down) according to their investment return.

CPF life annuity plan premium $166k - To get payout est 1100 to $1300
Private insurance annuity plan premium $300k to $350k - To get payout est $1100 to $1300
So CPF life is better annuity plan. I discussed with my agent (from Charles Monat) None of the private insurance can match CPF life payout. FYI, they even cannot guarantee
the min 2.5% of the CPF-OA interest for any of their endowment plan using CPF OA. So they totally stop selling it.

FYI, Tokio marine did launch a Annuity plan insurance early 2012. Let say at age 55. You pay $100k each for 5 yrs ( total 500k). Lock in for 10 yrs. At age 65. U wil get
projected payout of $33k/yr or $2.7k for life. If u divide by 500k by 3 (est 166k). The payout for premium 166k (CPF life premium) is only $930/mth. FYI, they no longer
selling this product. They launch the latest newer annuity plan (2017) which have a lower payout against the old annuity plan in 2012 due to mkt investment condition. Tokio marine also "shift goal post" to ensure it long term sustainability .


Why Govt need to shift goal post ?
Our govt needs to change the rules or conditions in order for our CPF system to be sustainable in long run. CPF life is not for the Richs/caplable ones ) to benefits the guarantee high interest rate they will enjoy if they leave untouch for legacy ( an amount of money or property left to someone in a will ) propose.


Just look at our STI index components. They needs to "shift the goal post " to kick out the bad ones like Noble , OLAM , Sembmarine etc.
They replace the better ones like Jardine Matheson Holdings Limited, Thai Beverage Public Company Limited etc. If nothing is being done,
STI index will be < 2000 & that will create a Bearish mood among S'porean investors which may affect consumers report.

It is the same as Schroder Asian growth Fund. In the early 2000, their TOP 10 HOLDINGS are most BHP , Rio Tinto, China gold mining, China CNOOC
to reflect the bullist sector on Mining & energy. It is link to China Olympic 2008 which China needs to spend on their infrastructure.
Look at their TOP 10 HOLDINGS today. It is mostly of consumer stocks like Alibaba , Tencent , AIA , Samsung etc. So far their ave long term return est 6%-7%.
If they don't "Shift the goalpost" by shifting "SUNSET sector". Their fund would probably close down due to it prolong underperforming or negative return.

Even our House tiny Ants also need to "shift goal post" to survive. I terminate the ants at location "A". They eventually shift to location "B" & then "c" to survive.
Never ending pest in my house.

CPF life is mostly for S'porean who do not know how to plan for their retirement when young. They failed through bad investment, bad spending habits etc. They will
still has some min sum for retirement when turn 65 which is totally not enough at all.

dont wast time explaining to that guy lah. he have a agenda to bs. his comparison is always oneside and muddled with BS to mislead the un educated folks.

[teddybear]

minority,
Wow! You the BIGGEST LIAR and BULLSHITTER still so THICK SKIN to be around?!

minority,
What is your agenda for LYING that CPF Life give you 7.5% p.a. return
AND also
LYING that Olam (majority controlled by Temasek) RIGGED THEIR BOOK so that it did not have to pay any taxes on their Capital Injection! (because you CLAIMED that all companies including PUB must pay taxes on Capital Injection but Olam didn't!)

So what does this mean? It means the FACTS had proven that minority is the BIGGEST LIAR and BULLSHITTER here!

Wow! Holy cow! So it is proven that minority you are here to mislead uneducated folks with your LIES and BULLSHIT!

Meanwhile, I am still waiting for you to prove that my questions about CPF Life are bullshit. (Anyway, How can questions be bullshit?) It seems that other than the answer to question 1, nobody has the answers to the rest of the 5 questions!
Oh, by the way, the answer to question 1, provided here:
https://www.cpf.gov.sg/Members/FAQ/s...ement/cpf-life

Q What happens if I choose the CPF LIFE Basic Plan?
A When you join the CPF LIFE Basic Plan, we will deduct about 10% of your Retirement Account savings for the annuity premium at the point of policy issuance. The actual percentage will depend on your age and gender. We will inform you on the amount deducted when your policy is issued. The premium deducted will be paid into the Lifelong Income Fund. The rest of your Retirement Account savings will stay in your Retirement Account.
You will receive monthly payouts from the savings in your Retirement Account from your payout start age until one month before you reach 90 years old. Once you reach 90 years old, you will continue to receive monthly payouts from the Lifelong Income Fund for as long as you live.
Payouts under your Basic Plan will be reduced when the combined balances in your CPF accounts,
including the amount committed to CPF LIFE, falls below $60,000. This is due to the reduction in any extra interest earned and paid to you.


didn't tally with the calculation I have cross checked for CPF Life Basic plan, so it seems that some details have been missing and not provided (like how much is the administrative costs etc) so the calculation based solely on the answer given won't tally!

Despite these, there are more bullshit and LIEs from you about CPF Life giving you 7.5% p.a. return, or it is better than private annuity scheme etc! Hei, nobody force you to buy private annuity scheme right?????? Do you have a choice not to participate in CPF Life scheme? If people are forced into it and have no choice then it is important that the scheme about CPF Life as well as its financial accounts is fully transparent and people knows what they are really getting such as the real nett returns of CPF Life (which takes into consideration all the costs involved, such as adminstrative fees, insurance/annuity costs (if any), accumulated unpaid surplus etc and also how much interests are being paid for your money remaining in the CPF Life account etc)!

And hei, we just accidentally discovered (using CPF Board's online CPF Life Payout estimator) that people born in 1965 will get less CPF Life monthly payout (and less bequest) than those born in 1964! Why nobody has been transparent and upfront about these facts?????????? So doesn't it means that the return of 1965 cohort will be lower than 1964 cohort? Where is the 7.5% p.a. return you claimed? (Anyway, we now know you LIED!). If there is no bullshit from you why you don't tell everybody here about all these FACTs????????????????

dont wast time explaining to that guy lah. he have a agenda to bs. his comparison is always oneside and muddled with BS to mislead the un educated folks.

[chestnut]

Do BRS @ 83k. Leave balance of 83k in your SA/RA and get 4%.

At age 65, your balance 83k in SA/RA will be 122k.

Your BRS payout will get 700-750, your bal 122k assuming you get 4% pa will be 400 per month.

You will get bet 1100 to 1150 and your so called 'bequest' is constant at 122k for life.....

May be a better deal for those looking to leave bequest in the event of dying old....

Another possible option

Food for thought.

To get the same CPF life ($166k) payout of est $1100 to $1300. You need to buy from private insurance annuity plan $300k to $350k to get a projected payout of $1100 to $1300. Remember it is projected. Not guarantee. The projected payout will change (so call shift goal post - up or down) according to their investment return.

CPF life annuity plan premium $166k - To get payout est 1100 to $1300
Private insurance annuity plan premium $300k to $350k - To get payout est $1100 to $1300
So CPF life is better annuity plan. I discussed with my agent (from Charles Monat) None of the private insurance can match CPF life payout. FYI, they even cannot guarantee
the min 2.5% of the CPF-OA interest for any of their endowment plan using CPF OA. So they totally stop selling it.

FYI, Tokio marine did launch a Annuity plan insurance early 2012. Let say at age 55. You pay $100k each for 5 yrs ( total 500k). Lock in for 10 yrs. At age 65. U wil get
projected payout of $33k/yr or $2.7k for life. If u divide by 500k by 3 (est 166k). The payout for premium 166k (CPF life premium) is only $930/mth. FYI, they no longer
selling this product. They launch the latest newer annuity plan (2017) which have a lower payout against the old annuity plan in 2012 due to mkt investment condition. Tokio marine also "shift goal post" to ensure it long term sustainability .


Why Govt need to shift goal post ?
Our govt needs to change the rules or conditions in order for our CPF system to be sustainable in long run. CPF life is not for the Richs/caplable ones ) to benefits the guarantee high interest rate they will enjoy if they leave untouch for legacy ( an amount of money or property left to someone in a will ) propose.


Just look at our STI index components. They needs to "shift the goal post " to kick out the bad ones like Noble , OLAM , Sembmarine etc.
They replace the better ones like Jardine Matheson Holdings Limited, Thai Beverage Public Company Limited etc. If nothing is being done,
STI index will be < 2000 & that will create a Bearish mood among S'porean investors which may affect consumers report.

It is the same as Schroder Asian growth Fund. In the early 2000, their TOP 10 HOLDINGS are most BHP , Rio Tinto, China gold mining, China CNOOC
to reflect the bullist sector on Mining & energy. It is link to China Olympic 2008 which China needs to spend on their infrastructure.
Look at their TOP 10 HOLDINGS today. It is mostly of consumer stocks like Alibaba , Tencent , AIA , Samsung etc. So far their ave long term return est 6%-7%.
If they don't "Shift the goalpost" by shifting "SUNSET sector". Their fund would probably close down due to it prolong underperforming or negative return.

Even our House tiny Ants also need to "shift goal post" to survive. I terminate the ants at location "A". They eventually shift to location "B" & then "c" to survive.
Never ending pest in my house.

CPF life is mostly for S'porean who do not know how to plan for their retirement when young. They failed through bad investment, bad spending habits etc. They will
still has some min sum for retirement when turn 65 which is totally not enough at all.

[chestnut]

For those who want to opt out of CPF life -

https://www.cpf.gov.sg/Members/Schem...ent-sum-scheme

Question : Can I be exempted from setting aside a retirement sum?


Ans - You may apply for an exemption from setting aside a retirement sum if you:​

have your own life annuity bought using cash. The monthly payout you receive from the life annuity should be equal to or above the full monthly payout; or
are a pensioner receiving a monthly pension equal to or above the full monthly payout.
To apply for an exemption, you can submit a copy of the annuity policy or a recent letter issued by the Pension Office of the Accountant-General’s Department, certifying the monthly pension amount. You may wish to visit the Pensioner’s Portal for more information.

[teddybear]

Do you know Why CPF Account's supposely claimed 4% p.a. interest rate is higher than it really is?

I believe nobody here would have knew about this, and I don't too! This is until I read an insightful article here on why CPF interest rate of 4% p.a. interest rate has been over-reported, as you can read here:
https://www.ifa.sg/cpf-interest/

and I quote the relevant sections:


First, CPF interest is calculated on a monthly basis but it is only credited at the end of the year. The interest that is credited at the end of the year forms the new balance for the following year. This method of crediting is not the standard practice in the banking sector. If you check your bank statements such as POSB or OCBC saving statements, you will notice that interests are credited at the end of every month. For fixed deposits, interests are credited at the end of the term period.

Hence, the actual rate of return for CPF is lower compared to a system in which the interest is credited every month all else equal. This is because the former’s interests do not get to compound every month.

Second, how CPF interest is calculated every month is unfair. Interest is based on the lowest balance for that month. Thus, it is possible you could end up with a significant loss of interest if you are careless in how transactions are done.

minority,
Wow! You the BIGGEST LIAR and BULLSHITTER still so THICK SKIN to be around?!

minority,
What is your agenda for LYING that CPF Life give you 7.5% p.a. return
AND also
LYING that Olam (majority controlled by Temasek) RIGGED THEIR BOOK so that it did not have to pay any taxes on their Capital Injection! (because you CLAIMED that all companies including PUB must pay taxes on Capital Injection but Olam didn't!)

So what does this mean? It means the FACTS had proven that minority is the BIGGEST LIAR and BULLSHITTER here!

Wow! Holy cow! So it is proven that minority you are here to mislead uneducated folks with your LIES and BULLSHIT!

Meanwhile, I am still waiting for you to prove that my questions about CPF Life are bullshit. (Anyway, How can questions be bullshit?) It seems that other than the answer to question 1, nobody has the answers to the rest of the 5 questions!
Oh, by the way, the answer to question 1, provided here:
https://www.cpf.gov.sg/Members/FAQ/s...ement/cpf-life

Q What happens if I choose the CPF LIFE Basic Plan?
A When you join the CPF LIFE Basic Plan, we will deduct about 10% of your Retirement Account savings for the annuity premium at the point of policy issuance. The actual percentage will depend on your age and gender. We will inform you on the amount deducted when your policy is issued. The premium deducted will be paid into the Lifelong Income Fund. The rest of your Retirement Account savings will stay in your Retirement Account.
You will receive monthly payouts from the savings in your Retirement Account from your payout start age until one month before you reach 90 years old. Once you reach 90 years old, you will continue to receive monthly payouts from the Lifelong Income Fund for as long as you live.
Payouts under your Basic Plan will be reduced when the combined balances in your CPF accounts,
including the amount committed to CPF LIFE, falls below $60,000. This is due to the reduction in any extra interest earned and paid to you.


didn't tally with the calculation I have cross checked for CPF Life Basic plan, so it seems that some details have been missing and not provided (like how much is the administrative costs etc) so the calculation based solely on the answer given won't tally!

Despite these, there are more bullshit and LIEs from you about CPF Life giving you 7.5% p.a. return, or it is better than private annuity scheme etc! Hei, nobody force you to buy private annuity scheme right?????? Do you have a choice not to participate in CPF Life scheme? If people are forced into it and have no choice then it is important that the scheme about CPF Life as well as its financial accounts is fully transparent and people knows what they are really getting such as the real nett returns of CPF Life (which takes into consideration all the costs involved, such as adminstrative fees, insurance/annuity costs (if any), accumulated unpaid surplus etc and also how much interests are being paid for your money remaining in the CPF Life account etc)!

And hei, we just accidentally discovered (using CPF Board's online CPF Life Payout estimator) that people born in 1965 will get less CPF Life monthly payout (and less bequest) than those born in 1964! Why nobody has been transparent and upfront about these facts?????????? So doesn't it means that the return of 1965 cohort will be lower than 1964 cohort? Where is the 7.5% p.a. return you claimed? (Anyway, we now know you LIED!). If there is no bullshit from you why you don't tell everybody here about all these FACTs????????????????