CPF Easy Info Thread. :)

[Okenba]

I have been pondering over this. Why govt give u the bait to join CPF Life?

Depends on how much you trust the govt/CPF. Possible answers.

1) They recognise that RSS may not be adequate for some. They judge that getting these people to change to CPF life is better than having these people use up their RSS and presenting social problems in the future.

2) CPF life makes use of pooled funds, the more funds there are, the easier or cheaper it may be for the govt to keep up CPF life for those who need help.

Personally, unless RSS greatly outstrips CPF life, I really don't see a reason to be particular about it.

 

[maple96]

Depends on how much you trust the govt/CPF. Possible answers.

1) They recognise that RSS may not be adequate for some. They judge that getting these people to change to CPF life is better than having these people use up their RSS and presenting social problems in the future.

2) CPF life makes use of pooled funds, the more funds there are, the easier or cheaper it may be for the govt to keep up CPF life for those who need help.

Personally, unless RSS greatly outstrips CPF life, I really don't see a reason to be particular about it.

U are talking like CPFB, most will know the default answer

 

[Okenba]

U are talking like CPFB, most will know the default answer

Clearly some people dunno that's why they ask the question.

Nobody will be so stupid to ask the question if they know the answer right?

 

[henrylbh]

Hey, then what's the difference between AMP and RSS?

I was looking to get BRS, then maybe choose standard or escalating, then do a diversification instead. Still playing with the mathematical model though.

RSS is history for those born from 1958.

RSS more flexible than AMP. For AMP one is forced to drawdown (not sure to 90 or 95) the coming Jul from time of topping up. Topping up to RSS need not be drawn down unless request is made to increase the default payout at PEA for about 20 years. For eg the last cohort (before 1958) with a min sum of 139k has a payout of 1240 pm over 20 years. If he topped up 37k (176k-139k), he will continue to get the default payout of 1240 unless a higher payout is requested. He can continue topping up every year as long as he song song.

 

[maple96]

Clearly some people dunno that's why they ask the question.

Nobody will be so stupid to ask the question if they know the answer right?

U obviously have very bad comprehension plus interpretation skills

I am searching for hidden agendas/motives

 

[henrylbh]

Depends on how much you trust the govt/CPF. Possible answers.

1) They recognise that RSS may not be adequate for some. They judge that getting these people to change to CPF life is better than having these people use up their RSS and presenting social problems in the future.

2) CPF life makes use of pooled funds, the more funds there are, the easier or cheaper it may be for the govt to keep up CPF life for those who need help.

Never the objective of CPF to use pooled fund for those who need help.

 

[maple96]

Never the objective of CPF to use pooled fund for those who need help.

spot on! he is a real joker

 

[Okenba]

U obviously have very bad comprehension plus interpretation skills

I am searching for hidden agendas/motives

We already know who has bad comprehension already. No need to emphasise. Now we see who has hidden agenda/motives as well.

 

[maple96]

Hey, then what's the difference between AMP and RSS?

I was looking to get BRS, then maybe choose standard or escalating, then do a diversification instead. Still playing with the mathematical model though.

As uncle henry pointed out, those are different.

If I choose BRS, I will only choose Basic Plan.

 

[maple96]

We already know who has bad comprehension already. No need to emphasise. Now we see who has hidden agenda/motives as well.

Dun come here to troll, cannot even get your facts right! End of discussion with u!

 

[henrylbh]

U obviously have very bad comprehension plus interpretation skills

I am searching for hidden agendas/motives

Firstly the flexi flat is very expensive. The subsidy only make it less Expensive. The flexi flat has limited lease and no resale value. Eg 100k (over 35 years lease is $2587 py while 180k over 99 years is 1818 py. The latter has good chance of appreciation (assuming for no other reason except inflation) or can be disposed to fund ....... The latter can also be rented out (after MOP) for a very good yield.

Secondly, flexi flat helps elderly to monetise the flat when the owner downgraded from bigger to smallest flat with no need to renovate and the maintenance like S&CC and property tax is minimal and free handouts are highers.

Part of the proceed is forced into CPF Life such that the elderly will not run of $$$. Otherwise, the elderly is unlikely to think of putting money into CPF for life payouts.

 

[Value.Matrix]

RSS is history for those born from 1958.

RSS more flexible than AMP. For AMP one is forced to drawdown (not sure to 90 or 95) the coming Jul from time of topping up. Topping up to RSS need not be drawn down unless request is made to increase the default payout at PEA for about 20 years. For eg the last cohort (before 1958) with a min sum of 139k has a payout of 1240 pm over 20 years. If he topped up 37k (176k-139k), he will continue to get the default payout of 1240 unless a higher payout is requested. He can continue topping up every year as long as he song song.

Really? I didnt know RSS has higher holding power (to defer the drawdown and amend to use less). This is powerful compare to AMP. Thanks Uncle Henry.

 

[Value.Matrix]

Firstly the flexi flat is very expensive. The subsidy only make it less Expensive. The flexi flat has limited lease and no resale value. Eg 100k (over 35 years lease is $2587 py while 180k over 99 years is 1818 py. The latter has good chance of appreciation (assuming for no other reason except inflation) or can be disposed to fund ....... The latter can also be rented out (after MOP) for a very good yield.

Secondly, flexi flat helps elderly to monetise the flat when the owner downgraded from bigger to smallest flat with no need to renovate and the maintenance like S&CC and property tax is minimal and free handouts are highers.

Part of the proceed is forced into CPF Life such that the elderly will not run of $$$. Otherwise, the elderly is unlikely to think of putting money into CPF for life payouts.

My mum is facing the same dilemma. I am not earning much now compared to the past (ok even with earning in past, below median income).

So am exploring how to properly plan for cpf life (coz selling 4 room hdb soon) and looking to get a bit if everything. Dividend stocks, REITS, and cpf life to complement.

 

[maple96]

Firstly the flexi flat is very expensive. The subsidy only make it less Expensive. The flexi flat has limited lease and no resale value. Eg 100k (over 35 years lease is $2587 py while 180k over 99 years is 1818 py. The latter has good chance of appreciation (assuming for no other reason except inflation) or can be disposed to fund ....... The latter can also be rented out (after MOP) for a very good yield.

Secondly, flexi flat helps elderly to monetise the flat when the owner downgraded from bigger to smallest flat with no need to renovate and the maintenance like S&CC and property tax is minimal and free handouts are highers.

Part of the proceed is forced into CPF Life such that the elderly will not run of $$$. Otherwise, the elderly is unlikely to think of putting money into CPF for life payouts.

Thanks now I know the adv and disadv of a flexi unit. I just want to explore the "monetise" portion, CPF Life is already a no choice. Will research further for my own purpose.

 

[diediex]

Hi,

I have a query for my father's option (born 1955) for CPF.
He is going 65 next year before July with current RA around 39K.
This put him into the RSS Scheme which pays out $250 for 27 years (Till 92), if he were to start the payout next year.

Question here is whether he should opt in for CPF Life?

According to my research,

1) RSS: draw $250 till 92; Money kept in RA continue to gain interest for bequest.
2) CPF Life: draw $234-$258 (depending on Basic/Standard scheme) till death. No interest gain for bequest.

He also has some cash in fix Deposit, should he do a top up?

 

[lifeafter41]

My mum is facing the same dilemma. I am not earning much now compared to the past (ok even with earning in past, below median income).

So am exploring how to properly plan for cpf life (coz selling 4 room hdb soon) and looking to get a bit if everything. Dividend stocks, REITS, and cpf life to complement.

How old is your mum, and just wondering why want to sell the 4 room Hdb.
Where is she going to stay?

 

[lifeafter41]

Firstly the flexi flat is very expensive. The subsidy only make it less Expensive. The flexi flat has limited lease and no resale value. Eg 100k (over 35 years lease is $2587 py while 180k over 99 years is 1818 py. The latter has good chance of appreciation (assuming for no other reason except inflation) or can be disposed to fund ....... The latter can also be rented out (after MOP) for a very good yield.

Secondly, flexi flat helps elderly to monetise the flat when the owner downgraded from bigger to smallest flat with no need to renovate and the maintenance like S&CC and property tax is minimal and free handouts are highers.

Part of the proceed is forced into CPF Life such that the elderly will not run of $$$. Otherwise, the elderly is unlikely to think of putting money into CPF for life payouts.

Hi Henry, thanks for this information.
I did not know about the no resale value though am aware of the limited lease.
Had I known earlier, I would advise my aunt to go for 3room flat instead.

The flexi flat they bought was around 115k, at euros area.
Even if buying g a resale of 3room with 60 years lease still make sense.

 

[Value.Matrix]

How old is your mum, and just wondering why want to sell the 4 room Hdb.
Where is she going to stay?

Long story but shes 69, and family matters, so had to sell. Shes going fir 2 room flexi too.

 

[ApexMan]

What if RA not enough to meet the cpf life scheme how

 

[BBCWatcher]

I have a query for my father's option (born 1955) for CPF.
He is going 65 next year before July with current RA around 39K.
This put him into the RSS Scheme which pays out $250 for 27 years (Till 92), if he were to start the payout next year.

I would double check that. CPF very recently announced that they're modifying the legacy Retirement Sum Scheme payout schedule to shorten the payout period. Shortening the payout period adds substantial longevity risk, but allegedly "It's what the people want."

Question here is whether he should opt in for CPF Life?
According to my research,
1) RSS: draw $250 till 92; Money kept in RA continue to gain interest for bequest.
2) CPF Life: draw $234-$258 (depending on Basic/Standard scheme) till death. No interest gain for bequest.

First of all, he's not required to start payouts at age 65. He can wait longer if he wishes (and if financially able), until as late as age 70. The longer he waits to start payouts, the higher the monthly payout amount. Also, the older you are, the more information you have about your own personal health status in order to assess longevity risk.

He also has some cash in fix Deposit, should he do a top up?

A fixed deposit is earning less than 2% interest, and the effective yield on CPF top ups is considerably higher. Provided he (and/or his loved ones) have modest emergency reserve funds, yes, that'd be a very reasonable thing for him to do to earn some much better interest and boost his future monthly payout.

What if RA not enough to meet the cpf life scheme how

You're allowed to join CPF LIFE with even a very modest Retirement Account balance.