CPF @ 55 & after

[henrylbh]

if you delay the drawdown, will the amount per month increase? otherwise, it is advisable to drawdown as quickly as possible.

Unlike MS scheme, CPF Life is less transparent and no way to calculate with reasonable certainty on any numbers given or to make any projection or decision with your retirement sum. It's a gamble that I believe many are not in favour. Even though my aunty is 94 followed by another 2 sis at 93 and 92 and my father coming 88, I may benefit from CPF Life, but I am still against it. MS scheme lasting till 85 should be good enough for most. Why must majority made to gamble just for some who live beyond 85.

 

[dork32]

for MS scheme.. is it the payout period 20years fixed?

e.g my father have 24000 in total, in MS scheme
drawdown: age 65
20years
24000/20/12 = 100 per month...

20years is fix? after 24000 draw finish.. no more money disbursement liao?

wrong. because money inside ra will earn interest. if interest is 4% per yr compounded monthly, you will get 145 per month for 20 years.

 

[RoLanTo]

wrong. because money inside ra will earn interest. if interest is 4% per yr compounded monthly, you will get 145 per month for 20 years.

noted on this.
i am more interested in, if the 20Years is fix or like bro henry mentioned, there is a min payout which will affect the overall duration of payout

 

[rrr2015]

"From January 2016, you have the option to start your CPF LIFE payouts later, up to age 70. For each year deferred, your monthly CPF LIFE payouts permanently increase by about 6% - 7%." hahaha

at 65 should be distribution phase, as long as enough to support desired lifestyle, why deferred? just spend it! anything can happen between 65 ~ 70 *touchwood*

 

[rrr2015]

My aunt retired at 55 with pension. Around age 70+ she sold her house, not flat, and gave some to the children and have a good time with the balance. At about 80, she opted lump sum payment in lieu of pension as she felt time is running out. With the money, she went on a month trip to see the world. Now she is 94 and broke Luckily she got a son to look after her. Each time I visit her, she wished the Lord would take her. But she is playing mahjong and si shet once a week How to go

your aunt already mastered the art of living!
i feel learning to "let go" & live simply is key to longevity

erm what's is si shet?

 

[havetheveryfun]

erm what's is si shet?

think he means si she.. 四色, the English name literally is Four Colour Cards

The grandmother generation or mother generation in their 50-60s
+ probably know it.... but our generation probably not anymore

 

[henrylbh]

your aunt already mastered the art of living!
i feel learning to "let go" & live simply is key to longevity

erm what's is si shet?

But she never let go as she still worry about her youngest son who is a compulsive gambler who is waiting for her to die so that he could inherit and then sell off the property which she jointly held with him. Fortunately she doesn't live with that son, else she would have long gone. As for living with her eldest son, she would mention to me that sometimes she is unhappy to get scolding from him once awhile. Now she also sad and very concerned that her daughter is dying soon from cancer. I just hope she can live another 10 years to help her solve her concern regarding her gambling son.

 

[star2008]

Based on 6.5% increase per year, and 4% rate of return, every year you delay your drawdown, you require to live 21 more years to get back the money that you forgo during the first year.

62 +21 = 83. i think i may not be able to make it to 83.

So, i will probably not delay my drawdown.

if you delay till 70, you will have to live up to 62 + 8*21 = 230 to make up for the amount lost during the first 8 years.

My calculation is based on the same bequest whether you delay your drawdown or not. Can this be assumed?

If you delay drawdown by 1 year, effectively you are keeping the 1 year worth of drawdown for future payout.
Assuming a monthly payout of $1200, 1 year is about $14400. How can this amount translate to need 21 years to get back????

 

[Genosis]

But she never let go as she still worry about her youngest son who is a compulsive gambler who is waiting for her to die so that he could inherit and then sell off the property which she jointly held with him. Fortunately she doesn't live with that son, else she would have long gone. As for living with her eldest son, she would mention to me that sometimes she is unhappy to get scolding from him once awhile. Now she also sad and very concerned that her daughter is dying soon from cancer. I just hope she can live another 10 years to help her solve her concern regarding her gambling son.

Well, as the saying goes "life is a bit*h, and then you die"

 

[rrr2015]

But she never let go as she still worry about her youngest son who is a compulsive gambler who is waiting for her to die so that he could inherit and then sell off the property which she jointly held with him. Fortunately she doesn't live with that son, else she would have long gone. As for living with her eldest son, she would mention to me that sometimes she is unhappy to get scolding from him once awhile. Now she also sad and very concerned that her daughter is dying soon from cancer. I just hope she can live another 10 years to help her solve her concern regarding her gambling son.

waaa ... indeed she is one tough lady!

 

[dork32]

If you delay drawdown by 1 year, effectively you are keeping the 1 year worth of drawdown for future payout.
Assuming a monthly payout of $1200, 1 year is about $14400. How can this amount translate to need 21 years to get back????

if u are on cpflife standard, you have nothing left in the ra regardless when you draw start the drawdown.

if i delay 1 year, i will be down 14400 compared to the guy that dont.
but i get 6% more every month after that. 6% of 1200 = 72. if interest rates is 0% 14400/72 = 200 months to get back. but interest is not 0. so you need more than 200 months. if you can do some maths on your own, you will realize you need 21 years to break even.

i already mention, if you are on the ms scheme, then there is no difference when you start the drawdown because your money is still in the ra

 

[rrr2015]

if u are on cpflife standard, you have nothing left in the ra regardless when you draw start the drawdown.

i thought standard deduct in 2 installments? 50% @55 & @65
but read we can select CPF life option @ 65 also?

 

[dork32]

i thought standard deduct in 2 installments? 50% @55 & @65
but read we can select CPF life option @ 65 also?

when you start to draw down, it means you have put down your second installments. so you have nothing left in your ra at 67 or later

 

[Squaredot]

But she never let go as she still worry about her youngest son who is a compulsive gambler who is waiting for her to die so that he could inherit and then sell off the property which she jointly held with him. Fortunately she doesn't live with that son, else she would have long gone. As for living with her eldest son, she would mention to me that sometimes she is unhappy to get scolding from him once awhile. Now she also sad and very concerned that her daughter is dying soon from cancer. I just hope she can live another 10 years to help her solve her concern regarding her gambling son.

you are a caring nephew
Me too will go for MSS if I have a choice because this scheme is transparent.

 

[henrylbh]

if u are on cpflife standard, you have nothing left in the ra regardless when you draw start the drawdown.

if i delay 1 year, i will be down 14400 compared to the guy that dont.
but i get 6% more every month after that. 6% of 1200 = 72. if interest rates is 0% 14400/72 = 200 months to get back. but interest is not 0. so you need more than 200 months. if you can do some maths on your own, you will realize you need 21 years to break even.

i already mention, if you are on the ms scheme, then there is no difference when you start the drawdown because your money is still in the ra

As I said, CPF Life is not transparent compared with MSS. With my poor maths it's even more difficult trying to do calculation on the delayed drawdown.

I believe the 1200 payout is meant to last to x years where your RA and premium are fairly "breakeven". So assume it's 90yo and interest is 4%. Can you calculate if delay 1 year (or forgoing 14,400) from 65 to 66, how much should the amount of 14,400 be, if it is to be paid out over a period to 90. Instead of 90, we can also take 85, 86 ... and we should be able to guess how they arrive at 6% extra for each year of delay.

 

[dork32]

As I said, CPF Life is not transparent compared with MSS. With my poor maths it's even more difficult trying to do calculation on the delayed drawdown.

I believe the 1200 payout is meant to last to x years where your RA and premium are fairly "breakeven". So assume it's 90yo and interest is 4%. Can you calculate if delay 1 year (or forgoing 14,400) from 65 to 66, how much should the amount of 14,400 be, if it is to be paid out over a period to 90. Instead of 90, we can also take 85, 86 ... and we should be able to guess how they arrive at 6% extra for each year of delay.

i have mentioned to make up for this if the interest rate is 0% is 200 months. if the interest rates is 4% it will take up 250 months.

 

[star2008]

i have mentioned to make up for this if the interest rate is 0% is 200 months. if the interest rates is 4% it will take up 250 months.

The 250 months or so (from age 65) is about the average life expectancy, which is typical of how an annuity works. The exact x age is unknown but it is somewhere below the life expectancy. Why below, cos the insurance underwriter need to make some profit.

the end point (x age) is the same for all, CPF just "spread" the money over the number of months they have to pay to an average person, except female will get lesser monthly payout than male as their life expectancy is longer.

At age 65, even if you delay payout by 1 years, 2 years or 3 years, the amount in your RA will "finish" by time you reach that x years, the difference is in the amount of monthly payout. If you live longer than x years, you will continue to get payout at expense of those who die before x years.

so there is no such thing as "take 21 years break even for 1 year delay, take 42 years to break even for 2 years delay etc".

 

[dork32]

The 250 months or so (from age 65) is about the average life expectancy, which is typical of how an annuity works. The exact x age is unknown but it is somewhere below the life expectancy. Why below, cos the insurance underwriter need to make some profit.

the end point (x age) is the same for all, CPF just "spread" the money over the number of months they have to pay to an average person, except female will get lesser monthly payout than male as their life expectancy is longer.

At age 65, even if you delay payout by 1 years, 2 years or 3 years, the amount in your RA will "finish" by time you reach that x years, the difference is in the amount of monthly payout. If you live longer than x years, you will continue to get payout at expense of those who die before x years.

so there is no such thing as "take 21 years break even for 1 year delay, take 42 years to break even for 2 years delay etc".

yes there is such thing as break even.

because if you are going to die at 68, it is better if you do not defer the cpf life payout
if you are to die at 500, it is better if you defer your cpflife payout
because of this there will be a point in the middle where it the same whether you defer or not.

 

[dork32]

The 250 months or so (from age 65) is about the average life expectancy, which is typical of how an annuity works. The exact x age is unknown but it is somewhere below the life expectancy. Why below, cos the insurance underwriter need to make some profit.

the end point (x age) is the same for all, CPF just "spread" the money over the number of months they have to pay to an average person, except female will get lesser monthly payout than male as their life expectancy is longer.

At age 65, even if you delay payout by 1 years, 2 years or 3 years, the amount in your RA will "finish" by time you reach that x years, the difference is in the amount of monthly payout. If you live longer than x years, you will continue to get payout at expense of those who die before x years.

so there is no such thing as "take 21 years break even for 1 year delay, take 42 years to break even for 2 years delay etc".

in cpf life standard there is no such thing as ra because it is 0. ra is finished even before it starts.

what you are tokking about is cpf life basic. i am tokking about cpf life standard.

 

[dork32]

The 250 months or so (from age 65) is about the average life expectancy, which is typical of how an annuity works. The exact x age is unknown but it is somewhere below the life expectancy. Why below, cos the insurance underwriter need to make some profit.

the end point (x age) is the same for all, CPF just "spread" the money over the number of months they have to pay to an average person, except female will get lesser monthly payout than male as their life expectancy is longer.

At age 65, even if you delay payout by 1 years, 2 years or 3 years, the amount in your RA will "finish" by time you reach that x years, the difference is in the amount of monthly payout. If you live longer than x years, you will continue to get payout at expense of those who die before x years.

so there is no such thing as "take 21 years break even for 1 year delay, take 42 years to break even for 2 years delay etc".

the x years you are tokking about is something like the breakeven year.