If she is the first batch under CPFL but has not commenced CPFL payout, then she got until age 70 to decide one of 3 plans. But if she already started payout, nothing to consider, if not then decide on which plan to choose before commencing life payout.
If her CPF statement show she is on CPF Life Standard Plan, you should be able to see the amount of premium deducted/balance in CPF Life too. If she is born before July 1960 and did not opt out of the old CPF Life policy, she should be under CPF Life Standard Plan (default or chosen), with 50% of RA transferred to CPF Life at 55. She already "losing" interest of 4% on premium from age 55 to the pool should she die anytime after. At 65, CPFB will deduct the remaining 50% from her RA to form the complete CPF Life policy, she will be given option to start payout or delay till 70. The more she delay, the more interest will be lost to the pool (fear), though she will get a higher payout and make more if she live long enough (greed). Choose greed? Creative CEO died at 67 recently, can you "predict" longevity? Your choice, chance and challenge to decide.
No logic one. Least possible interest loss would be go for basic plan if you not interested on payout and longevity.
50% of FRS, u can check back to the year she turned 55 for her FRS. Most likely her SA/OA was less than FRS at 55, you check to confirm. Then at 65, CPFB will wiped out all in RA and whatever in SA/OA to form the remaining 50% of FRS to transfer to CPFL pool as premium. CPFB will inform her at 65 on the details but best to have a meeting with CPFB as the letter might not give all the details.
I think the 50% thingy applies to those who opt to join CPFL and start CPFL from age 65 from time of introduction of CPFL in 2013 well before the mandatory first batch of 65er in 2023.
Dun think, I talk facts! You are too young to know about the old policy, unfair policy when made them at 55 join CPFL. He already confirmed but need to do more work!
Those born in 1958 and after are under mandatory CPFL. The first batch turns 55 in 2013 and in 2023 that batch can opt to commence life payout. So you are implying the first batch who turns 55 in 2013 are forced to choose the life plan (and cannot change plan before commencement of life payout) ?
Show link. I like facts.
If she has less than FRS at 55, not all SA/OA will move to RA as certain amount (minimum $5k) is retained in the accounts for withdrawal from 55.
So the issue is whether to start early or later. Has payout started? If not, cannot change plan? Under present rules, you decide when to start payout and which plan you choose. Not logical or fair to disallow change of plan if payout has not commenced.
She is under old cohort CPFL policy, she already paid premium into the pool, already joined CPFL, under old policy, payout only start at 65 after the remaining 50% of premium is paid (or less depending on balance at 65). She might be able change plan from Standard to Basic but not advisable cos she will lose more monies and get lower payout, cos she already "lost" interest on the premium paid, if she change to Basic, all her interest in the pool will be gone, and CPF will recalculate her payout entitlement based on no interest! If she continues with Standard, at least those interest in the pool is still her's ie included in calculation of payout but only get paid to her after her capital/premium is depleted. That guy does not know the old policy and CPFB do not keep old rules in the website, even new rules get "wiped" out with the new website!
Since have not started payout or have not decided when to start payout, call CPF Board whether allow to change plan and if not why not.
I'd say so.
Well, hypothetically she could buy a home then pledge it. She said she wants to minimize "loss" of interest to the CPF Lifelong Income Fund, so there you go. How hard does she want to work trying to achieve her goal? (Or would she like to emigrate to another country, become a citizen there, and stop being Singaporean? Then she can pull out of CPF completely. Same question, really: how important is her goal?)
Her CPF LIFE premium is paid, and evidently the second premium will be paid (maybe with a sweep too). Not really. She's going to be buying a "full" (or full-ish) CPF LIFE annuity, and she's paid for some already. The only decision she has left is when to start monthly payouts. I don't think that decision affects her interest "loss." Total payouts plus any residual (to her CPF nominees) will equal or exceed premiums paid. I don't think the starting payout age she chooses shifts the age when payouts start to exceed premiums paid, but it does affect her payout amount. And it may affect the timing of a second sweep if there is one.
Both. I assume she'd prefer to collect as much interest as possible from CPF consistent with her primary goal. But that's not a requirement. She could metaphorically shoot both of her feet instead of just one foot if she wishes.
Does she have dollars in her SA or OA? Will she have more dollars in there (is she working in Singapore)? If so, and if her Retirement Account wasn't funded to the Full Retirement Sum, there will be a second "sweep" attempt at some point. The timing of any second sweep might be within her control.
Yup, likely. See above.
I'm not sure that's a given, but let's assume her logic is sound for sake of argument. As we've just figured out (I hope) the premium she has already paid is probably only part of the story. She has more dollars going into the pool, and her payout starting age decision could affect those dollars, too. In particular, if she waits longer then it's possible the second sweep will be later. $X swept in later is less interest (in the pool) than $X swept in sooner. It's 5 years less interest on that money, actually.
My understanding is that the second sweep is to make up the gap to the age 55 FRS. So the second sweep should be smaller the longer you wait to start payouts. Please check that, of course.
Why waste time with people who do not know or understand the old CPFL policy ? It is better to seek clarifications with CPF on what happens at 65. How old is she now, years to 65?
