Sure, use the CPF LIFE Estimator. Increase your RA balance and see what happens to your monthly payout. You can also read how about the CPF Board has designed CPF LIFE and their statements about interest computation and crediting.
It depends on what your outcome is.
Why would anyone wants to put their money with CPFLIFE or in fact, ANY annuity if interest are not even computed into the monthly payout.
I don't see why. It's actually less messy because the couple's resources are more efficiently deployed. Family courts might have to apportion the monthly income while both spouses are living, but they already apportion CPF savings.
That's still an option. Nobody is forced to choose the CPF LIFE "Partner Plan." It's an option, not an obligation.
No, not really. Many employers already transfer funds to the CPF Board within the same work calendar month. By the time you get to day 28 (or whatever) you already know whether your employee has worked the lion's share of the month. Quibbling about 1 or 2 work days isn't something most employers lose sleep over.
Exactly, but why should the employee have to pay a steep charge (in lost CPF interest) for the employer's cashflow preferences? The CPF Board has a deadline, and it could either pull the deadline forward about 2 weeks or it could apply some sort of carrot/stick approach. For example, employers that meet the same calendar month "early" deadline might receive a small annual rebate. Employers that don't wouldn't.
The "free lunch" here refers to anyone losing the interest computed if one dies by age 85. Deceased could not draw the interest because they died earlier. And that interest does not belong to anyone except the common pool who lives past 85.
Of course they wouldn't, or probably wouldn't anyway.
I would not want the government to pay this kind of rebate. The companies that do not have cashflow issues are already better off than the firms trying to make ends meet. Can imagine in the end it is eg banks getting the rebate.
Where you get info that interest is always computed monthly and tracked for you ..... That's only true as long as money remains in RA.
Once money moved from RA to CPFL as annuity premium, you can forget about the interest on the premium. It not yours nor your beneficiary
You only start to recover the interest forgone after your monthly payouts exhaust the premium. And you have to live long enough to recover the interest lost or gain more than the interest lost. There must be losers and winners for this game to go on and on. So take your bet. You have no choice whatever CPFL plan you opt for
OK, so let's pursue your "logic" a bit further. By your "logic" term life insurance should be free to everyone who dies after age 65 (the term age, let's suppose) -- right? Because they receive zero payout, and therefore that's worthless, so why pay any premium?
They will reduce payout. CPF life payout are not guaranteed and reviewed yearly. Likely will also push back payout start date so that payout amount is higher.
Just tried the CPF life estimator. After it calculates, there is a footnote that shows :
So looks like review is yearly.
- Payouts are based on the current CPF interest rates.
- CPF LIFE monthly payout may be adjusted every year to take into account factors such as interest rates and mortality experience.
- This tool is for illustrative purposes only and actual results may vary.
I will take screenshots every year from now till 65 to see if it changes.
OK, so just pull the deadline forward by about 2 weeks from the current deadline. In Singapore we have payroll computers and FAST. This isn't 1962 any more.
With due respect, WTF do you mean? Couples that choose the "Partner Plan" would reduce the amount of work Family Courts and the CPF Board need to do. Perhaps you're not familiar with the complications that already exist?
Again, I don't see how. If you're a married couple, you usually want your spouse to be taken care of when you predecease him/her. Without any worry. A "Partner Plan" does that, and it's totally simple. You just sign up, and the CPF Board takes care of the rest. You don't have to worry about each setting aside dollars in some savings account or anything else. You don't have to worry about shuffling dollars between CPF accounts between spouses. All of that complexity goes away, and it is very complicated.
you mentioned it belongs to the participants. it just means that if i live long enuf, the money is mine, if i do not, then the interest is not mine. i do not go about counting birds in the bush. i do not the value the toto ticket at 1 mil today. i value it at 1 mil only when i strike.
this is not fake news. the interest does not enter your personal account. it goes to the common pool.
there are more than one person that agrees with me that interest in the pool in not my money unless i live long enuf.Where you get info that interest is always computed monthly and tracked for you ..... That's only true as long as money remains in RA.
Once money moved from RA to CPFL as annuity premium, you can forget about the interest on the premium. It not yours nor your beneficiary
You only start to recover the interest forgone after your monthly payouts exhaust the premium. And you have to live long enough to recover the interest lost or gain more than the interest lost. There must be losers and winners for this game to go on and on. So take your bet. You have no choice whatever CPFL plan you opt for
Can't just think about employees. Have to consider employer cashflow.
Your language is not nice. Putting "With due respect" followed by XXX does not make it less impolite.
A simple and fuss free CPF Nomination to the spouse can also do this.
Easy for you. But a lot more work for CPF board. Means more budget needed.
take my example i am paying $6 a month and i am insured for 50k should i die. yes, my insurance is not worth 0, but is it worth 50k? definitely no, it is probably worth $6. the value of peace of mind should i suddenly die.
Problem is this is not a choice. Its a bundle package where you are to buy it together with other packages. So with a forced decision, some would rather buy their own insurance or even live off without insurance.
