CPF Accounts Value thread

[dork32]

The only help CPF LIFE can provide is to help defend a particular bequest from other assets (or, better yet, lifetime gifts). It provides the maximum help in doing so if you defer to age 70, increase to ERS level, and choose the Escalating Plan — assuming you are in average or better health when you make your payout decision.

it is a fact, if you are on escalating and die at 81.
you will get 0 bequest compared to 130k on basic.
the total payout is less than that of basic.

what a wonderful defense escalating plan provides for of your assets

 

[dork32]

it is a fact, if you are on escalating and die at 81.
you will get 0 bequest compared to 130k on basic.
the total payout is less than that of basic.

what a wonderful defense escalating plan provides for of your assets

so some idiots out there are saying that i am planning to die at 81.

no,i am just making a factual statement. you have to take this into consideration when you are making decisions.

 

[tangent314]

Someone forgot to switch to sock puppet account before replying to ownself.

 

[dork32]

Someone forgot to switch to sock puppet account before replying to ownself.

yes i am tokking to myself. yes, i am crazy. no, my intention was not to use a puppet account to answer myself.

 

[maple96]

U hope that u die early?

Yeah. But choose basic then have to die early to save money. Not sure why people who have quite a lot of money somehow fear of losing money until believing that they will die early.

U are trapped in your own negative mindset! Who made those assumptions? U made those assumptions, I never!

CPF Life (all 3 plans) provide life long mthly payouts for as long as u live. For Basic Plan, if u die early, u get a bigger refund of CPF Life monies (including 4%+2% interest which Standard and Escalating plans dun get). If u die at 90, u still get refund of your unused CPF life premiums. If u survive pass 95, u make some gains living on other people's fund in CPF Life pool. In short, I lose less unless I survive pass 95 to make some gains but I am not into hoping to make gains from the CPF Life Pool.

 

[maple96]

WTF? This post is gibberish.

.

U obviously cannot comprehend simple Singaporean English! Choosing the Basic Plan is not about guaranteeing a Bequest! U dun understand the simple benefits of a Basic Plan and starting payouts at 65, which me as a Singaporean does! But I will not share the details of those benefits here cos me not here to sell the plan to others

 

[maple96]

May I know if the amount of payouts that will be paid for life will be decided upon age 55 or 65? And amount will be fixed for life right? (unless u choose escalating plan)

the mthly payout amt will be decided when u decide to start mthly payout from payout eligibility age, currently 65 but u can choose to defer till latest 70.

The amt is likely to be fixed for Standard Plan and Basic Plan (CPF board can still make changes in the future, and likely adjusted lower for Basic Plan when RA runs out), increases by 2% annually for Escalating Plan (but the mthly payout amt may be adjusted lower before the 2% is applied in the future). There is not guarantee u will get the same amt in the future.

 

[Nofear40]

Are we all trying to predict when will we be dying ?

 

[Mecisteus]

But I will not share the details of those benefits here cos me not here to sell the plan to others

Is there any details that you have not shared in this forum?

 

[maple96]

Are we all trying to predict when will we be dying ?

No, my view is u should not try to "predict" and use that as a criteria to choose your CPF Life Plan. Nobody can do that, even if u try using your family history, there is no guarantee, as besides health and longevity genes, there are other causes of death which u cannot control, tho u can try to avoid to some extent, but murphy's law!

There is no need to do that as all Plans will pay u for as long as u live.

 

[THEMIKOS]

I see. Thanks for clarifying. Which leaves another piece of doubt for me.

Case 1: i choose basic sum and die at age 66. Balance will go to my kids right?

Case 2: i choose basic sum but i live till 101 years old, so i will be eating up way more than what i put in (inclusive interest) and so i don't have anything to bequest for my kids. Right?

Looking at both cases i wonder how the govt upkeeps the "maintenance"? 1st case they dont earn and 2nd case they lose money. Is this sustainable?

you are right that cpf pays till you die, regardless of age.

one important point that you are missing is the amount your kids get when you die

 

[JuniorLion]

I see. Thanks for clarifying. Which leaves another piece of doubt for me.

Case 1: i choose basic sum and die at age 66. Balance will go to my kids right?

Case 2: i choose basic sum but i live till 101 years old, so i will be eating up way more than what i put in (inclusive interest) and so i don't have anything to bequest for my kids. Right?

Looking at both cases i wonder how the govt upkeeps the "maintenance"? 1st case they dont earn and 2nd case they lose money. Is this sustainable?

Take a look at this: https://en.wikipedia.org/wiki/Actuarial_science

Actuaries will ensure the system stays sustainable. For details, you may refer to maple96's explanation.

You don't need to worry for the government; they are not as stupid as some people think.

 

[ELKYme]

Though I’m no CPF expert, I’ll try my best to clear your doubts:

Case 1: Yes, the balance unused portion goes to your kids if you have nominated them as the beneficiaries (including the unused annuity premiums net off interest earned on the annuity premiums).

Please nominate your kids as beneficiaries if you haven’t done so.
https://www.cpf.gov.sg/Assets/Members/Documents/FORM_6A1_CASH.pdf

Case 2: Yes, if you live till 101, there will be nothing left to bequest (you have already taken back a lot more than what you had contributed).
Look at the “your bequest over time” chart for all 3 plans.
https://www.drwealth.com/cpf-life/

The “maintenance”is paid by other CPF Life members that did not live that long. This is called risk-pooling (all insurance companies that provide annuity policies do this).

Is it “sustainable”? Why not?
In case 1, they are just returning your money as a bequest.
In case 2, should mortality rates drop (everyone lives longer) compared to the actuarial calculation, they can raise the lifelong income fund premiums for future cohorts.

I see. Thanks for clarifying. Which leaves another piece of doubt for me.

Case 1: i choose basic sum and die at age 66. Balance will go to my kids right?

Case 2: i choose basic sum but i live till 101 years old, so i will be eating up way more than what i put in (inclusive interest) and so i don't have anything to bequest for my kids. Right?

Looking at both cases i wonder how the govt upkeeps the "maintenance"? 1st case they dont earn and 2nd case they lose money. Is this sustainable?

 

[Arxxxx]

Hi all,

Does anyone know how the CPF interest is allocated at the end of the year? I have looked at my previous year transaction history realised that the interest credited across OA-SA-MA is almost similar amount.

 

[Mecisteus]

I see. Thanks for clarifying. Which leaves another piece of doubt for me.

Case 1: i choose basic sum and die at age 66. Balance will go to my kids right?

Case 2: i choose basic sum but i live till 101 years old, so i will be eating up way more than what i put in (inclusive interest) and so i don't have anything to bequest for my kids. Right?

Looking at both cases i wonder how the govt upkeeps the "maintenance"? 1st case they dont earn and 2nd case they lose money. Is this sustainable?

Case 1: You will get back 80% of your RA balances (with interests net of payouts) + 20% unused premiums (without interests)

Case 2: By this age, your RA balance and premiums already depleted. You will withdraw from the Lifelong Income Fund. This fund consists of interests from other people who died early like Case 1. Remember you lost the interests from the premiums.

For Standard and Escalating plans, those people used up 100% of RA for premiums.

 

[cal3135]

Bro, i am towards FRS as I do not wish to pledge my house with the BRS option.
Can u share more info on if BRS may be a better options.

I’m able to reach ERS when 55yo.

Am reading the thread to have a better understanding n choices.

Thanks.

If you are on Basic and you happen to live longer life, you are little worse off. I have not done calculations on this part yet. I see if I can share any.

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[Mecisteus]

Bro, i am towards FRS as I do not wish to pledge my house ****************** with the BRS option.
Can u share more info on if BRS may be a better options.

I’m able to reach ERS when 55yo.

Am reading the thread to have a better understanding n choices.

Thanks.

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Actually, I am still learning. I have a long way to go till 55. Initially, I don't want to crack my head because I know the rules will change 15 years later.

Now, I am trying to digest more in detail.

I wanted to do a calculation of total payouts by death age but I realised someone already done it.

https://forums.hardwarezone.com.sg/117861073-post158.html

You can also read a summary from our bro dork.

https://forums.hardwarezone.com.sg/117766226-post86.html

PS: Sorry, you were asking on the BRS/FRS/ERS. My posts above were related to various plans.

 

[SKenny]

Bro, i am towards FRS as I do not wish to pledge my house with the BRS option.
Can u share more info on if BRS may be a better options.

I’m able to reach ERS when 55yo.

Am reading the thread to have a better understanding n choices.

Thanks.

Posted with xsmax HardwareZone Forums app

You should try to avoid BRS. FRS is a good option.

If you can afford it, then go for ERS.

 

[ocs_woodlands]

after reading many posts here, I have 2 questions I hope someone can clarify.

1) at 55, I put in the bare minimum into RA ie BRS. after that, anytime before 65, can I top up my RA with cash up to ERS without having to move anymore money from my SA into the RA?

2) After 55, when my OA, SA and MA get the yearly interests credited (assuming MA interest overflow to OA), when I withdraw the interest for my monthly expenditure, can I dictate that it comes from my OA or must I first withdraw from my SA till one day it falls to zero?

 

[Mecisteus]

You should try to avoid BRS. FRS is a good option.

If you can afford it, then go for ERS.

If you opt for ERS, bigger amount will be used for premiums which earn interests but not paid to you if die early. ie referring to the 20% for basic and 100% for the other plans.