CPF Life Plan - Standard, Basic, Escalating --- which one better ?

[dork32]

u always like to dog eye see people down to up yourself

We show gratitude to our parents by offering to take care of them using me and my sibling's own monies to support them. My mum is not financially dependent on us, we need to give her care and support, take good care of her in her final years. What she needs is care and support, people insurance, not money insurance which she has plenty. My parents are smart savers

I have their genes, so I planned for retirement, all ready, better than your nonsense

i tell this any sg people, they would be able to relate to it.

but you tell it to an ang moh, it may be very different.

 

[dork32]

There's something downright macabre about sitting on a pile of wealth and waiting to die. I don't recommend that. Enjoy some, together, and be generous while you're still around. Don't make the kids, grandkids, nieces, nephews, charities, etc. wait even a second longer. Giving is fun!

this is total rubbish.

i will sit on my pile of wealth till i die. this pile is accumulated by me. i have the right to sit on it. i will spend it slowly such that it can last till the day i die. if i die, whatever is left will be given to my kids. this is a fair system. i dont have to depend on anyone to feed me.

if i start to give everything away today, who is going to feed me tomorrow? it will put me in the destitute situation such that you can gloat over me.

 

[dork32]

So if your goal is to be financially secure for life, then all you need to do is to look at the CPF LIFE BASIC Plan payout amount and decide whether you can live on that number for the rest of your life, and given the totality of your situation (e.g. whether you have a primary residence with plenty of remaining leasehold). If the answer is, "Yes, that'll keep me going well enough to get by," then you've "arrived," you're good. If the answer is, "Oh, s**t! That's not going to work!" then you've missed your financial security goal.

 

[JuniorLion]

u always like to dog eye see people down to up yourself

We show gratitude to our parents by offering to take care of them using me and my sibling's own monies to support them. My mum is not financially dependent on us, we need to give her care and support, take good care of her in her final years. What she needs is care and support, people insurance, not money insurance which she has plenty. My parents are smart savers

I have their genes, so I planned for retirement, all ready, better than your nonsense

He jumps into conclusion rather quickly.

 

[ELKYme]

The reason why I highlighted those points is so that younger readers can start to plan and won’t need to be in this dilemma. When ERS is attained and there’s still a sizeable amount leftover in OA/SA, just choose basic and start payouts later if possible.

As for TS father’s situation, it’s already cut & dried (100K in RA @ 63). Without any other form of income, whichever plan is chosen, it would hardly be enough.

Were you hoping that someone here can give TS the “correct” plan to choose? LOL.
Only God will be able to do that as the ideal answer is dependent on TS father’s age of passing.

Hello, u are not helping TS by changing topic of discussion, we are not talking about bequest, pls address TS concern

 

[dork32]

one very important thing is missing in bbc's argument, numbers

eg when i make the comparison between basic and standard,
i state that on frs
- you get 100 more a month on standard
- you are down 140k if you die when you are 81
- you will receive more if you live till 87.
You decide if 100 more is good enuf
you decide if you can stomach the 140k loss
you decide if 87 is a reasonable age to die.

if you are going to receive 300 more a month on standard
if you just lose 20k if you die at 81
if the breakeven between standard and basic is 78
There is a better chance for me to choose standard.

we should not be jumping in becoz escalating is giving 2% more
why is it 2% and not 1% or 3%
why is it that you are down 12% on the initial payout. could it be 8% down or 20% down.

we must evaluate the different schemes. we should not just jump in because it is giving 2% more and every one needs a life annuity

 

[ELKYme]

Bro, perhaps you can take into consideration your father’s current health as well as he’s lifestyle to make a guess on your father’s mortality. Choose the plan that’s most beneficial to your guesswork.

Milestones to take note:
1) 16 years from the first payout till your father is 81 (81-65).
2) Basic vs escalating $77/month more (65 till 81)
3) Basic vs escalating $117/month less (81 till 90)

Good luck in your decision making.

What it means if you have Escalating Plan and you passed on at age 81 ---- your nominated person got $0 because the moment you signed on Escalating plan - CPF Life move your money to a pool to give you higher monthly payout like 2% increase every year so by age 81 for my dad case $0 bequest. Sorry can't explain well I just learnt from this thread and bits and pieces eslewhere.

Also Standard Plan at age 81 bequest also $0.

Go see the calculator below filled up RA $100k age 62 not 63 then click Bequest dot:


https://www.cpf.gov.sg/eSvc/Web/Schemes/LifePayoutEstimator/LifePayoutEstimator

 

[BBCWatcher]

Inflation is real, folks. I’m sorry if reality offends some delicate sensibilities, but that cannot be helped.

 

[maple96]

Inflation is real, folks. I’m sorry if reality offends some delicate sensibilities, but that cannot be helped.

because u dunno how to manage or handle it in sg

the more u write with incorrect facts/conclusions, the more it reflects on you, it cannot be helped

 

[maple96]

The reason why I highlighted those points is so that younger readers can start to plan and won’t need to be in this dilemma. When ERS is attained and there’s still a sizeable amount leftover in OA/SA, just choose basic and start payouts later if possible.

As for TS father’s situation, it’s already cut & dried (100K in RA @ 63). Without any other form of income, whichever plan is chosen, it would hardly be enough.

Were you hoping that someone here can give TS the “correct” plan to choose? LOL.
Only God will be able to do that as the ideal answer is dependent on TS father’s age of passing.

thanks for confirming u lack the knowledge and experience to contribute lor

 

[maple96]

Bro, perhaps you can take into consideration your father’s current health as well as he’s lifestyle to make a guess on your father’s mortality. Choose the plan that’s most beneficial to your guesswork.

Milestones to take note:
1) 16 years from the first payout till your father is 81 (81-65).
2) Basic vs escalating $77/month more (65 till 81)
3) Basic vs escalating $117/month less (81 till 90)

Good luck in your decision making.

there are other causes of death, murphy's law, so we need to hedge with a good plan

 

[tangent314]

What it means if you have Escalating Plan and you passed on at age 81 ---- your nominated person got $0 because the moment you signed on Escalating plan - CPF Life move your money to a pool to give you higher monthly payout like 2% increase every year so by age 81 for my dad case $0 bequest. Sorry can't explain well I just learnt from this thread and bits and pieces eslewhere.

Also Standard Plan at age 81 bequest also $0.

Go see the calculator below filled up RA $100k age 62 not 63 then click Bequest dot:

https://www.cpf.gov.sg/eSvc/Web/Schemes/LifePayoutEstimator/LifePayoutEstimator

If I were in your father's shoes, I would go for the escalating plan, so that would be my recommendation.


You can't put a price on peace of mind, and peace of mind is what the escalating plan gives. The switch from the old minimum sum scheme to the life annuity scheme gives the peace of mind that the money will never stop coming, now the escalating plan gives the additional peace of mind that inflation will not force me to reduce my qualify of life in the future.

The other thing I like to have is financial independence. Sure, it would be nice if my kids give me stuff, but I don't want to depend on them. I would want to be sure that if for some reason they aren't helping me out anymore, I will still have enough income to live a dignified manner.

I am not concerned that my starting payout will be slightly lower than with the basic plan. If anything, it tells me the amount I get to spend to set a minimum standard of living that I can afford for the rest of my life. I find it preferable to do this than to get a slightly higher sum now and then possibly have to reduce my standard of living later when inflation sets in.

I am not concerned that there will be less money going to my beneficiaries if something happens to me early. At this age, my spouse will likely have his or her own retirement income, and my children should already have started working.


HOWEVER, from the last paragraph, you should be able to discern the exceptions that would favor going for the basic plan. If for some reason your spouse does not have sufficient retirement income, or your children are still young, and you do not have any other plan in effect that can provide for them if something were to happen to you early, then the basic plan may provide them with some form of insurance, although it would likely not be very much.

 

[Mecisteus]

HOWEVER, from the last paragraph, you should be able to discern the exceptions that would favor going for the basic plan. If for some reason your spouse does not have sufficient retirement income, or your children are still young, and you do not have any other plan in effect that can provide for them if something were to happen to you early, then the basic plan may provide them with some form of insurance, although it would likely not be very much.

A life insurance is more appropriate if you have dependents on the father's life.

 

[ELKYme]

Perhaps you’re right as I’m not to that age.

Please share your knowledge and experience with us so that all can learn by using TS’s scenario.

thanks for confirming u lack the knowledge and experience to contribute lor

 

[Opps-gal]

i saw it at why it matters at channelnews asia

https://www.youtube.com/watch?v=GwWFMXzMOkw
Why the Poor are Trapped into Poor Decisions | Why It Matters | CNA Insider

This one?

 

[Opps-gal]

If so, those with kids better choose the plan that allows bequest, so they can get the leftover if pass away.

Don't know when one will die in accident- knock down by escooter, car, etc. Cannot predict one's life.

Get money out can don't use all up. Keep in FD. Wonder if inside CPF account no more cash, can ask for comcare help?

What it means if you have Escalating Plan and you passed on at age 81 ---- your nominated person got $0 because the moment you signed on Escalating plan - CPF Life move your money to a pool to give you higher monthly payout like 2% increase every year so by age 81 for my dad case $0 bequest. Sorry can't explain well I just learnt from this thread and bits and pieces eslewhere.

Also Standard Plan at age 81 bequest also $0.

Go see the calculator below filled up RA $100k age 62 not 63 then click Bequest dot:


https://www.cpf.gov.sg/eSvc/Web/Schemes/LifePayoutEstimator/LifePayoutEstimator

 

[dork32]

https://www.youtube.com/watch?v=GwWFMXzMOkw
Why the Poor are Trapped into Poor Decisions | Why It Matters | CNA Insider

This one?

Yeap. this is the one that i saw. it explained that if you in the rut, you may make decision that only for the present. you will care little for the future.

if you are into this situation, standard plan would be the best.

 

[dork32]

Inflation is real, folks. I’m sorry if reality offends some delicate sensibilities, but that cannot be helped.

we all know that inflation is real. we know that it is going to hit our purchasing power.

is cpf life escalating plant the only solution to combat inflation?

is the price to pay for the 2% increase to combat inflation too steep?

bbc suggested that life annuity is the most important thing. you must get one regardless of the cost. this is rubbish
bbc suggested that 2% increase is the most important thing to fight inflation. you must choose this plan regardless the cost. this is rubbish.

maybe bbc should watch more channelnewsasia like us to understand how we locals feel.

 

[dork32]

I am not concerned that my starting payout will be slightly lower than with the basic plan. If anything, it tells me the amount I get to spend to set a minimum standard of living that I can afford for the rest of my life. I find it preferable to do this than to get a slightly higher sum now and then possibly have to reduce my standard of living later when inflation sets in.

this is your view. there is no right or wrong. some people prefer to have more money now. others prefer to have it in the future.

if you watched the channelnewsasia clip, you will realize that the poor aunty forgo discount buying bulk because she can only afford to pay for the current use.

 

[dork32]

I am not concerned that there will be less money going to my beneficiaries if something happens to me early. At this age, my spouse will likely have his or her own retirement income, and my children should already have started working.

again there is no right or wrong to this.

to me, even if my kids do not need my money, i prefer to give it to them rather than to the lifelong income fund. 140k (On FRS dying at 80) is seriously not a small sum.