Annuity Plan

[henrylbh]

Try asking here, more opinions

You pointing him to more confusion. He's not asking for opinions.

 

[henrylbh]

Thanks! I am now topping up my cpf..but will like to hv the option to withdraw any amount above FRS at age 55 in the event i need the cash then. If there is no need, i will keep to earn interest.

But somehow i read any top up amount and interest earn cannot be withdraw. So a bit worried what if i need cash at age 55, does this mean i cannot touch the excess amount at FRS if i have a big chunk being top up cpf

Once RA is created (even with money solely from top-ups) with FRS at age 55, any remaining balance in SA followed by OA can be withdrawn in any amount at anytime as your wish.

 

[YKOHYL]

Once RA is created (even with money solely from top-ups) with FRS at age 55, any remaining balance in SA followed by OA can be withdrawn in any amount at anytime as your wish.

Thanks Henry! In this case i can top up my Cpf to the max to earn the compound intereSt if I have the option to withdraw at age 55.

 

[kelhot2001]

You pointing him to more confusion. He's not asking for opinions.

Lol, i am always so confused

 

[henrylbh]

Lol, i am always so confused

Lol and you want others to join you.

 

[ahjun2009]

Really there are lots of other better ways to bridge between the ages of 65 to 70 than a private annuity.

There isn't much value in almost all of the 'private annuity' plans available. With the exception of Manulife Retire Ready Plus (and maybe 1 or 2 more), they do not draw down on principal, meaning it's similar to putting your money into a bank and just paying you out the interest earned every year, after taking a cut out of the principal amount and the interest earned of course. This kind of 'annuity' is pretty easy to DIY, unlike the real annuities that draw down on your principal and require longevity insurance to ensure they last your life time (e.g. CPF Life)

Please do not misrepresent by saying Manulife Retire Ready do not draw down on principal. It does. The capital guarantee means that the total paid out is more than the premium paid. It differs alot from the rest of the income plan from aviva, chinalife or china taiping or vivo wealth.

The other 4 that I mentioned about capital guaranteed means even after the payout, u can still surrender the plan after years receiving the payout and still get back the capital amount or even higher.

Eg, pay 100k. 5 years later receive 3k/yr (guar + non-guar). Received for 10 years (30k in total) then want to buy house buy car, can surrender and take back 100k or more.

This doesn't applies for manulife retire ready.

 

[Geeezz]

so vc and top up is different?

say i hv zero in cpf nao n will nvr be working sho if i top up till frs even if at age 55 i hv any excess i cannot withdraw? whereas if i do it via vc yearly i can withdraw the excess at age 55?

 

[Value.Matrix]

so vc and top up is different?

say i hv zero in cpf nao n will nvr be working sho if i top up till frs even if at age 55 i hv any excess i cannot withdraw? whereas if i do it via vc yearly i can withdraw the excess at age 55?

Please check with CPF Board to confirm this. But based on the wordings and what nots, (RSTU and interest earned is reserved)

RSTU = amount is set aside for RA (which includes the interest earned and etc etc). IF you are salaried... part of your SA is a VC3A already... so no issue with this.

However, if you have 0 in SA and you just RSTU all, you might not be able to withdraw the excess at age 55. (hence speak to CPF Board to clarify).

 

[lifeafter41]

Please do not misrepresent by saying Manulife Retire Ready do not draw down on principal. It does. The capital guarantee means that the total paid out is more than the premium paid. It differs alot from the rest of the income plan from aviva, chinalife or china taiping or vivo wealth.

The other 4 that I mentioned about capital guaranteed means even after the payout, u can still surrender the plan after years receiving the payout and still get back the capital amount or even higher.

Eg, pay 100k. 5 years later receive 3k/yr (guar + non-guar). Received for 10 years (30k in total) then want to buy house buy car, can surrender and take back 100k or more.

This doesn't applies for manulife retire ready.

Maybe that’s the reason why the rest is not SRS applicable accept for Manulife RetireReady......