CPF @ 55 & after

[star2008]

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

This is very different from what you have said below.

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?

 

[henrylbh]

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.

Whether it's cpf life standard or basic, I think rr2008 got a point that the deferred amount would be spread to the end point (x age), unless someone can proof that the increased payout from a delay would go beyond x year in which case we are screwed without knowing for deferring the payout.

 

[dork32]

This is very different from what you have said below.

this is exactly what i said.

there is no contradiction.

it is still the same. if you die are going to die at 68, do not defer your payout.

if you are going to die at 83, it does not matter if you defer or not. this is called the break even point.

if you are going to die at 500, defer your payout

 

[dork32]

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%

 

[henrylbh]

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%

Meaning instead of 1200 at 65, I will get 1,272 (1.06x1200) if drawdown at 66 and 1,348 (1.06x1,272) if drawdown at 67 and so on?

 

[dork32]

Meaning instead of 1200 at 65, I will get 1,272 (1.06x1200) if drawdown at 66 and 1,348 (1.06x1,272) if drawdown at 67 and so on?

this is wat the statement means

 

[henrylbh]

this is wat the statement means

Now the question is whether the amount deferred each year together with interest will go beyond the initial x age determined at age 65.

 

[dork32]

Now the question is whether the amount deferred each year together with interest will go beyond the initial x age determined at age 65.

permanently means until you die

 

[dork32]

now my question is if i were to die at 72 or somewhere around there,

what is the bequest if i draw down at 65 vs i draw down at 70?

are there any info on this? i cannot find any

 

[henrylbh]

now my question is if i were to die at 72 or somewhere around there,

what is the bequest if i draw down at 65 vs i draw down at 70?

are there any info on this? i cannot find any

Already said the scheme is not transparent. How to calculate especially there are many combinations and permutations together with lack of info on rates use.

 

[rrr2015]

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

true ... RA may be zero but bequest ain't zero
FRS Standard CPF life bequest stretches until age 85
@65 191,161 ~ 200,401
@75 43,658 ~ 46,128

FRS Basic CPF life stretches until age 95
@65 233,182 ~ 244,428
@75 169,052 ~ 179,390
@85 76,826 ~ 81,251

what's not clear to me is if they deduct the second installments @65 if you choose to delay your payout till 67

 

[dork32]

what's not clear to me is if they deduct the second installments @65 if you choose to delay your payout till 67

this is what henry and me is angry about. there is definitely lack of info for us to make decisions.

 

[star2008]

this is exactly what i said.

there is no contradiction.

it is still the same. if you die are going to die at 68, do not defer your payout.

if you are going to die at 83, it does not matter if you defer or not. this is called the break even point.

if you are going to die at 500, defer your payout

weren't you saying the breakeven is at 230 years old if choose defer payout till 70. Below is your exact statement.

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.
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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.
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if you are going to die at 68, better for you to so called "opt out" of cpf life.

 

[01asdf]

weren't you saying the breakeven is at 230 years old if choose defer payout till 70. Below is your exact statement.



if you are going to die at 68, better for you to so called "opt out" of cpf life.

Both statements are saying each year of deferral needs 21 years of extra payout to break even.

i.e. Defer 1 year to start paying at 63 makes breakeven 62+21=83.

Defer 8 years to start paying at 70 makes breakeven 62+21*8=230.

 

[dork32]

weren't you saying the breakeven is at 230 years old if choose defer payout till 70. Below is your exact statement.



if you are going to die at 68, better for you to so called "opt out" of cpf life.

yes i am saying that the break even is 230 years old if you choose to defer to 70. in other words, do not defer your payout to 70. i dare to bet my entire fortune that you are not going to live to 230 years old

 

[dork32]

do you know the meaning of break even?
it is eat pig, pay dog when you are banker
bo lai.

 

[dork32]

Both statements are saying each year of deferral needs 21 years of extra payout to break even.

i.e. Defer 1 year to start paying at 63 makes breakeven 62+21=83.

Defer 8 years to start paying at 70 makes breakeven 62+21*8=230.

this is what i meant. i see no contradiction in the statements i made.

 

[star2008]

yes i am saying that the break even is 230 years old if you choose to defer to 70. in other words, do not defer your payout to 70. i dare to bet my entire fortune that you are not going to live to 230 years old

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.

 

[Genosis]

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?

 

[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.

what i am trying to say is the breakeven point is different when you defer the your payout.