BBCWatcher
Arch-Supremacy Member
- Joined
- Jun 15, 2010
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I don't know what Dork32 was trying to say with "zero interest," but your description is correct.That's what both dork and bbcwatcher were trying to say?
Correct?
Your RA is created at age 55, and your RA earns interest -- all of your RA. (Your OA, SA, and MA also earn interest. All of these accounts earn attractive, positive, non-zero interest.) Later, you start your CPF LIFE lifetime annuity payouts with the premium paid from your RA. (You can start them anywhere from age 65 to age 70. The longer you wait until age 70, the higher your monthly payout amount. You should wait if you are in reasonably good health and if you don't need the money right away for present consumption.) You have the option to withdraw "excess" principal, above the Basic Retirement Sum (for example), if you wish, when you wish (from age 55, with a 20% option available from age 65), in any increment(s) up to your applicable withdrawal limit. If you leave that "excess" principal alone and let it earn interest, it'll earn interest, and lots of it. That interest will boost your CPF LIFE annuity payouts. And/or that interest will boost your bequest to your nominated heirs.
The more future income you have and can depend on, the less you need to save today. This is real money earning really high interest, not some bizarro world where there is no future. (Unless you're terminally ill, and then maybe there isn't a long future for you.)
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