CPF @ 55 & after

[dork32]

So the general idea is try to live to at least 85 years old in order to enjoy the full benefits of CPF life?

What will happened if someone died young at 60 years old? What happened to the money in their CPF account?

wrong, to enjoy the full benefits of cpf life, live as long as you can. can hit 200 even better

if you die at 60, your money is still in the ra. your kids will get your money.

 

[dork32]

what i am saying is that even if you defer payout by 0 yr or 1 yr or 2 yr or 3 yr or 4 yr or 5 yr, the "breakeven" point is the same, the end point is the same, the x years is the same, which is somewhere around 85+/- years, the only difference is on the monthly payout amount.
do you understand at all?

it is similar to having different amount in RA, ie BRS or FRS or ERS. It does not mean one has ERS ( which is 3 time the amount of BRS), the breakeven point is longer.

do you have the mathematics to evaluate this sort of payout and when the cpf will run dry?

maths problem, if i have 200k in cpf ra today. cpf ra gives me 4% interest. i decide to draw 1200 a month. how many years does it take my ra to run dry?

if you cannot formulate the answer (with calculator or computer) within 30 seconds, you better not talk rubbish here.

 

[henrylbh]

do you have the mathematics to evaluate this sort of payout and when the cpf will run dry?

maths problem, if i have 200k in cpf ra today. cpf ra gives me 4% interest. i decide to draw 1200 a month. how many years does it take my ra to run dry?

if you cannot formulate the answer (with calculator or computer) within 30 seconds, you better not talk rubbish here.

I still sotong on what you trying to say. I believe the payouts whether it's basic or standard or under MSS will follow similar method of calculation. There is a finite period or "x years".

Under MSS, the payouts will last about 20 years from the eligible age which now 65. So if one defers the drawdown to age 70, the payouts would be bigger as the accumulated amount is spread to age 85.

Similarly, under CPF Life, any deferment of drawdown would increase the payout such that it would exhaust the "amount deferred" to the finite or "x years" which is not apparent in CPF Life and would become more difficult to calculate, with undisclosed rate of return, if standard is chosen, as part of RA is used to pay premium.

 

[01asdf]

I still sotong on what you trying to say. I believe the payouts whether it's basic or standard or under MSS will follow similar method of calculation. There is a finite period or "x years".

Under MSS, the payouts will last about 20 years from the eligible age which now 65. So if one defers the drawdown to age 70, the payouts would be bigger as the accumulated amount is spread to age 85.

Similarly, under CPF Life, any deferment of drawdown would increase the payout such that it would exhaust the "amount deferred" to the finite or "x years" which is not apparent in CPF Life and would become more difficult to calculate, with undisclosed rate of return, if standard is chosen, as part of RA is used to pay premium.

CPF life (basic or standard) is an annuity. There is no finite x years where you no longer receive a payout until you die.

MSS is not. Once you exhaust your savings (guestimated at around 20 years) you're screwed.

 

[OngHuatHuat]

Better take good care of own health.

wrong, to enjoy the full benefits of cpf life, live as long as you can. can hit 200 even better

if you die at 60, your money is still in the ra. your kids will get your money.

 

[dork32]

sorry for talking rubbish.

only the first number i posted is correct.

the breakeven point for draw down at 62 vs 63 is 83 years old.
the breakeven point for draw down at 63 vs 64 is 84 years old
the breakeven point for drawdown at 64 vs 65 is 85 years old and so on

i have double counted and hence the number are wrong. i apologise to star for being so rude and stupid.

 

[henrylbh]

sorry for talking rubbish.

only the first number i posted is correct.

the breakeven point for draw down at 62 vs 63 is 83 years old.
the breakeven point for draw down at 63 vs 64 is 84 years old
the breakeven point for drawdown at 64 vs 65 is 85 years old and so on

i have double counted and hence the number are wrong. i apologise to star for being so rude and stupid.

What about 62 vs 65?

 

[rrr2015]

anyone like to read & summarize this paper .... too academic for me

An Actuarial Framework of Singapore's Pension Program: The CPF LIFE Scheme
http://www.nanyangbusinessschool.nt...pers/paperfolder/IRFRC2015_Kwong_Tse_Chan.pdf

also in CPF life handout
A bequest is the money that you leave to your beneficiaries after your death. There may not be a bequest if the savings used to join CPF LIFE have been fully paid out in monthly payouts

 

[tiny]

My 2 cents: CPF LIFE makes a promise as publicised everywhere in newspapers/advertisements/etc that it will start the monthly payouts at age 65 for life as long as the CPF member lives.

On the other hand, many whole-life insurance/"endowment" /annuity policies that I have seen, the benefits chart will stop at age 99 or 100. If you don't believe, you go flip through your insurance contracts. So these plans actually auto surrender itself at age 100 and gives a closure lump sum to the policyholder. Why? My guess is no insurance companies out there will dare to give permanent payouts forever. Maybe next time humans can really live until 150 years old or 200 years old?

 

[Trak]

 

[Perisher]

So these plans actually auto surrender itself at age 100 and gives a closure lump sum to the policyholder. Why? My guess is no insurance companies out there will dare to give permanent payouts forever. Maybe next time humans can really live until 150 years old or 200 years old?

According to World Bank

These are the average life expectancy of Singaporeans through the decades
1960 - 65
1970 - 68
1980 - 72
1990 - 76
2000 - 78
2010 - 81

As can be seen, an average of 3 years is extended each decade, if extrapolate...
by the year 2050, Singaporeans can live up to 93 on average.
If taking a 30 year old fellow now, by 2050, he is still just 65, so we go on and seek further... by 2090, he would be 105 when averaged Singaporean can live up to 105 y.o.!

In other words, those who are 30 or below this year might live till the year 2100 if one is lucky(or unfortunate for some?)!

And if scientist by some miracle found a way to extend life by then, wow...

 

[chopra]

sorry for talking rubbish.

only the first number i posted is correct.

the breakeven point for draw down at 62 vs 63 is 83 years old.
the breakeven point for draw down at 63 vs 64 is 84 years old
the breakeven point for drawdown at 64 vs 65 is 85 years old and so on

i have double counted and hence the number are wrong. i apologise to star for being so rude and stupid.

Bro. ..this looks more like it.

Apgp ignores one's age. Only difference is starting principal sum at 63 vs 64 is 4% difference

 

[chopra]

My 2 cents: CPF LIFE makes a promise as publicised everywhere in newspapers/advertisements/etc that it will start the monthly payouts at age 65 for life as long as the CPF member lives.

On the other hand, many whole-life insurance/"endowment" /annuity policies that I have seen, the benefits chart will stop at age 99 or 100. If you don't believe, you go flip through your insurance contracts. So these plans actually auto surrender itself at age 100 and gives a closure lump sum to the policyholder. Why? My guess is no insurance companies out there will dare to give permanent payouts forever. Maybe next time humans can really live until 150 years old or 200 years old?

DO we have a sample tnc?

What if scientists invent longevity pill? Surely there's some underwriting???

 

[chopra]

According to World Bank

These are the average life expectancy of Singaporeans through the decades
1960 - 65
1970 - 68
1980 - 72
1990 - 76
2000 - 78
2010 - 81

As can be seen, an average of 3 years is extended each decade, if extrapolate...
by the year 2050, Singaporeans can live up to 93 on average.
If taking a 30 year old fellow now, by 2050, he is still just 65, so we go on and seek further... by 2090, he would be 105 when averaged Singaporean can live up to 105 y.o.!

In other words, those who are 30 or below this year might live till the year 2100 if one is lucky(or unfortunate for some?)!

And if scientist by some miracle found a way to extend life by then, wow...

Mod, cannot suka suka extrapolate la. It will surely plateau when e 1960s ppl become our elder-est where most sanitary problems were resolved.

 

[rrr2015]

What if scientists invent longevity pill? Surely there's some underwriting???

why wait for scientists to invent?
http://www.longevinexadvantage.com/

 

[henrylbh]

My guess is CPF may tweak SA limit. Else those having 161k before reaching 55 will have their balances growing by leaps and bounds far above the minimum sum which may grow at about 3%.

 

[OngHuatHuat]

Did you take into account the fact that the money still compiling inside when they started the payout?

Later at home I try do my own maths and show you all.

sorry for talking rubbish.

only the first number i posted is correct.

the breakeven point for draw down at 62 vs 63 is 83 years old.
the breakeven point for draw down at 63 vs 64 is 84 years old
the breakeven point for drawdown at 64 vs 65 is 85 years old and so on

i have double counted and hence the number are wrong. i apologise to star for being so rude and stupid.

 

[dork32]

Did you take into account the fact that the money still compiling inside when they started the payout?

Later at home I try do my own maths and show you all.

just for your info,the word is compounding. of course i know what compound interest is. but i never heard of compile interest. the 21 years for the first calculation is correct. i double counted for the rest of the years

 

[OngHuatHuat]

Sorry for my bad English.
It is supposed to be compounding.

just for your info,the word is compounding. of course i know what compound interest is. but i never heard of compile interest. the 21 years for the first calculation is correct. i double counted for the rest of the years

 

[OngHuatHuat]

Okay I did my detailed calculations using apps, correct me if I am wrong:

I am assuming monthly payout of 1220 sgd according to cpf life website, yearly payment is 14640.

This is the capital after 10 years of compounding at 4 % + 600 contribution from the additional 1 %

After 10 years compounding, assume yearly repayment of 149xx sgd, after 17 years, total annuity will be depleted(assuming an interest rate of 4 %).

So the break even period should be between 17 to 18 years.

Assumption: interest rate during payout period stays constant at 4 % and no additional 600 per year during payout period.

That means as long as you lived past 82 years plus, the rest of the annuity will be pure profit.

just for your info,the word is compounding. of course i know what compound interest is. but i never heard of compile interest. the 21 years for the first calculation is correct. i double counted for the rest of the years