About annuities

[phone987]

when we compare products, shouldn't we compare the same category? Granted that you are not into annuity, but there are other who are looking into annuity. You should not make the misleading comments that there are better policies out there as they are of totally different focus and objectives. In short they are different products. It is like comparing a freehold property with leasehold property.

 

[phone987]

Anyways, for all the others reading here for info, most of us have no choice but to enter CPF Life anyway, so don't think too much about it. Plan for the shortfall you still have after accounting for your payouts from CPF Life. It's also good to plan for a little extra, in case certain elements don't do well, or reduce your retirement expectations a bit to cater for that.

you do have a choice, Go buy a private annuity that has same or higher payout than CPF Life, and you can take out your min sum.

 

[focus1974]

It is actually everyone's own responsibility for their own retirement. Nobody owes us a living. You want the country to have a crippling pension system like the Europeans and Americans? CPF is better off because everyone is responsible for their own retirement, not living off some other tax payers' money.

Last I know... a lot of ex-ministers and civil servants are still living off pension schemes using tax payers' money i supposed....

A case of .. .Do what I say.. but don't do what i do.

 

[djchris]

I for one, trust CPF's payouts more than Prudential's non-guaranteed payouts. If Prudential or any other insurer can produce an annuity package equivalent to CPF Life with 100% guaranteed payouts, I'm definitely on board.

 

[tiny]

Link: https://www.cpf.gov.sg/cpf_trans/ssl/financial_model/lifecal/Life_Estimator.asp

This sentence was posted at CPF LIFE calculator webpage: "The monthly payout may be adjusted every year to take into account factors such as CPF interest rate and mortality experience."

Let's bookmark this thread and re-visit it again 1-2 years later.

 

[henrylbh]

Hi tiny, I have thought of mentioning all the other benefits as well from getting a private plan, but then it wouldn't be an apple to apple comparison because CPF Life doesn't have those features would it? Haha

Anyways, for all the others reading here for info, most of us have no choice but to enter CPF Life anyway, so don't think too much about it. Plan for the shortfall you still have after accounting for your payouts from CPF Life. It's also good to plan for a little extra, in case certain elements don't do well, or reduce your retirement expectations a bit to cater for that.

The plan you mentioned definitely cannot be compared to CPF Life as it is not comparing apple to apple. But the plan is inferior, though it is similar, if not the same as CPF min sum scheme in which one puts in a min sum at age 55 and get a FIXED payout from age 65 till the fund is exhausted in about 20 years or slightly longer if CPF rates remain the same. Anyway CPF min sum is now history.

I got a feeling that even voluntary money left in OA at 55 and drawdown at 65 may be better than your plan as the return is guaranteed at min of 2.5%.

 

[Futureskid]

No matter what, most of u will get less than the principle sum in annuities, only those minority who have a very long lifespan will gain... CPF life is worse, u can't choose not to buy and when to buy, it depends on your luck when u turned 55 for the amount of payout.

I think don't bother too much about CPF life since u have no control, hope luck will be with u when u turn 55!

 

[bslow27]

I'm very worried that the DDA will be more than 67 when i'm 55.

 

[highsulphur]

I understand from CPF that you can apply to opt out of cpf life if you brought a similar pte annuity plan. Has anyone done it?

For those who say their pte plan is better (Eg prudential and tm), have you done so ?

 

[cybercom8]

my friend was asked to pay almost $300+K in order to start getting estimated $1K payout every month 5 years later...is this a good annuity type plan?

 

[djchris]

It's a typical one because the logic is simple. Longer time before getting payout = lesser total premium, and vice versa.

 

[henrylbh]

my friend was asked to pay almost $300+K in order to start getting estimated $1K payout every month 5 years later...is this a good annuity type plan?

There is no "almost $300+k". It is either almost $300k or $300+k.

Payout starts from which age? But whatever age payout starts, it is still a losing proposition as interest on 300k plus can quite easily get 12k a year without touching the principal amount.

I can underwrite and give him 1300 from age 55 and still made a good profit.

 

[tiny]

my friend was asked to pay almost $300+K in order to start getting estimated $1K payout every month 5 years later...is this a good annuity type plan?

Your friend's current age?
$300k as a single premium?
Any other benefits such as bequest, death, early surrender, maturity bonus?

 

[limster]

my friend was asked to pay almost $300+K in order to start getting estimated $1K payout every month 5 years later...is this a good annuity type plan?

Pay insurance company $300,000 get $12,000 a year starting after 5 years. Agent gets his new BMW/Mercedes also.

Buy $300,000 worth of shares delivering 5% dividend, get $15,000 a year immediately.

I think that any insurance company that successfully sells this kind of annuity is worth investing in!

 

[stoneblackdragon]

can put in CPF- RA? take in take out every year assuming over 55 and already hit minimum sum. HAHA then can get 4% a year also.

UNTIL they suddenly lock, then emo liao

*not exactly sure of CPF rules