CPF Easy Info Thread. :)

[henrylbh]

The following is from CPF website -

'When you join the CPF LIFE Basic Plan, we will deduct about 10% of your Retirement Account savings for the annuity premium at the point of policy issuance. The actual percentage will depend on your age and gender. We will inform you on the amount deducted when your policy is issued. The premium deducted will be paid into the Lifelong Income Fund. The rest of your Retirement Account savings will stay in your Retirement Account.

You will receive monthly payouts from the savings in your Retirement Account from your payout start age until one month before you reach 90 years old. Once you reach 90 years old, you will continue to receive monthly payouts from the Lifelong Income Fund for as long as you live.

Payouts under your Basic Plan will be reduced when the combined balances in your CPF accounts, including the amount committed to CPF LIFE, falls below $60,000. This is due to the reduction in any extra interest earned and paid to you.'

If one has 166k, CPF says the monthly payout from 65 is about 1,280 to 1,380 (say average is 1,330) for basic plan.

According to above, the payout is from RA (after 10% taken off as annuity premium at 65). The question is whether the RA will last till 89 yo 11 months with monthly payout of 1,330? According to my calculation, RA will be exhausted around 88 yo. So it seems that monthly payout of 1,330 will be reduced in later years according to the last para. Reduced to how much? Is my understanding right?

 

[elnewbie]

Paiseh...somehow at the back of my mind, i was more focused on the fact that there is zero interest refunded.

u posted the following yesterday:

 

[dork32]

why after so much discussion and posts by others, u still don't think u can get back your 10% unused CPF life premium?

common sense tells me it will not be return.

there is no free lunch in this world. this 10% is to be used for people that refuse to die. if they give it back to you, who is going to pay for them when their ra runs out?

 

[dork32]

i also love the life long income fund. when money goes there, it is not going to go to your pocket, unless you refuse to die.

 

[henrylbh]

common sense tells me it will not be return.

there is no free lunch in this world. this 10% is to be used for people that refuse to die. if they give it back to you, who is going to pay for them when their ra runs out?

Whether standard or basic plan, a sum will move to LIF as annuity premium.

It appears to be a prepayment and unused annuity premium will be refunded except for interest earned thereon.

 

[BBCWatcher]

Whether standard or basic plan, a sum will move to LIF as annuity premium.

Right. It doesn't really matter how CPF handles the accounting. You just decide how much lifetime annuity you want (you might have some control over that), when you want monthly payouts to start (earliest age 65, latest age 70, or anywhere in between), and whether you want the payouts to start a bit smaller and increase by 2% per year or not. If you're in reasonably good health or better, the 2% annual escalating payout option is generally a good idea.

CPF LIFE is not a reliable way to leave a particular bequest, unless perhaps you're in poor health. If you're trying to leave some money to heirs -- to a child or grandchild with a disability, for example -- and if you're in reasonably good health or better, you'd best make other provisions if you can.

 

[dork32]

CPF LIFE is not a reliable way to leave a particular bequest, unless perhaps you're in poor health. If you're trying to leave some money to heirs -- to a child or grandchild with a disability, for example -- and if you're in reasonably good health or better, you'd best make other provisions if you can.

it is important you consider the entire package. You should not just ignore the bequest portion.

 

[dork32]

Right. It doesn't really matter how CPF handles the accounting. You just decide how much lifetime annuity you want (you might have some control over that), when you want monthly payouts to start (earliest age 65, latest age 70, or anywhere in between), and whether you want the payouts to start a bit smaller and increase by 2% per year or not. If you're in reasonably good health or better, the 2% annual escalating payout option is generally a good idea.

we have gone there before. someone did mention the escalating payout is very lousy.

you did not defend the scheme then. why do you want to bring it out again?

 

[shadow84]

I saw an advertisement that we can allow GE to help use some of our CPF-OA funds to put into their investment funds, then may get better returns of 3.5%.

Any thoughts on this?

 

[a4973]

I saw an advertisement that we can allow GE to help use some of our CPF-OA funds to put into their investment funds, then may get better returns of 3.5%.

Any thoughts on this?

able to share the source?

 

[ralliart12]

Hi, has anybody heard of the CPF Life Plus Plan? Any idea how it works? It appears some very old folks are on these "special" plan which I can find no information on the CPF website?

 

[Bigoya]

I saw an advertisement that we can allow GE to help use some of our CPF-OA funds to put into their investment funds, then may get better returns of 3.5%.

Any thoughts on this?

AXA have InspireDuo, AIA has Asset Builder, Manulife has Manulink Investor, Prudential has PRUlink supergrowth account.

Nothing's new here?

"may get better returns of 3.5%"
May also get better returns of 8%, lousier returns of 1.5%, negative returns of -2%....

 

[kehyi4]

Hi, has anybody heard of the CPF Life Plus Plan? Any idea how it works? It appears some very old folks are on these "special" plan which I can find no information on the CPF website?

There used to be 4 CPF LIFE plans before they simplified to just Standard & Basic:

LIFE BASIC PLAN: Gives the lowest payout but leaves the most for beneficiaries. It is recommended if you are in the pink of health or have sufficient savings outside your CPF.

LIFE BALANCED PLAN: The default plan for members who are automatically included under the scheme from 2013, if they do not choose a particular plan. It strikes a balance between your monthly payout and the bequest.

LIFE PLUS PLAN: Provides a higher payout, but leaves less for beneficiaries. Experts say it will appeal to individuals with chronic medical conditions who want the higher payouts, but still wish to leave something behind for their loved ones.

LIFE INCOME PLAN: Gives the highest payout but leaves nothing for beneficiaries. While it may be suitable for those with no beneficiaries, experts do not recommend it in case the member changes his mind or his circumstances change.

source: http://kimpengarticles.wordpress.com/2009/10/20/close-to-12000-opt-for-cpf-life/

http://aboutfinancialplanning.net/latest-changes-to-cpf-life/

 

[alt2015]

Q1. At 55, $250k will move from SA to RA, leaving $200k in SA and $400k in OA and these can be withdrawn anytime.

Q2. FRS you no choice - at 55 automatically. ERS and BRS anytime from 55 but don't know by when you need to exercise your option - most probably before you start your monthly payouts which can be deferred to age 70 only.

Q3. Whatever left in OA and SA after 55 will remain there and continue to earn the prevailing interest at long as you please or until they change the rules.

Hi.. for your reply on Q1.. why sweep 250k and not 125k to RA?

 

[streams]

I need to increase my parent’s current payout from RA so that she has sufficient $$ to spend. Any advice how I can go about helping her and figure her max monthly payout?

 

[highsulphur]

I need to increase my parent’s current payout from RA so that she has sufficient $$ to spend. Any advice how I can go about helping her and figure her max monthly payout?

top up loh. otherwise how?

 

[streams]

I mean increasing her payout.. I think she can request more base on current balance. But website does not say how.

 

[icebeng]

The easiest way is to get her to log into her CPF account online using her SingPass.
Just send a request using the e-concierge service.
She can specify the exact amount she would like to receive monthly.

Edit:
If you would like to do it the traditional way, sending the request by snail mail to the following address works too.

CPF Board
Robinson Road P.O Box 3060
Singapore 905060
Attn: Retirement Schemes Department (RSD)

Unless I'm mistaken, they cannot process your request via email or phone call, it has to be one of the methods above.

ooops sorry, 1 more method is to go down to a CPF office personally.
HTH

 

[crimsontactics]

Bumps to preserve thread.

 

[crimsontactics]

Be wary about putting too much money in CPF:

https://www.facebook.com/zaobaosg/posts/1859285584142601

http://www.zaobao.com.sg/zopinions/talk/story20180228-838673

Please stop fear mongering in a serious sub-forum.

去年10月，我太太不慎在家跌倒，脑部受损，昏迷不醒，送院急救后，虽然活了下来，但自此瘫痪，形同“活死人”，终日躺在床上，依靠仪器维持没有价值的生命。

当时我们感到非常痛心和悲伤，也担心她日后的医疗开销。还好我俩有一点积蓄，每月也可以从公积金局领取退休金，勉强可以应付。

我原本想向公积金局申请，从我太太的公积金户头提钱出来作为医药费，公积金局说我太太必须亲自去申请，或通过网上申请。由于我太太已瘫痪在床上，申请动用公积金的事只好作罢。

没想到，今年1月初，我到储蓄银行想从我太太的户头提取公积金局每月存入的退休金，却被银行告知当局并没有进钱。我们向公积金局了解，当局说因为我口头上告诉他们我太太生活无法自理，所以他们已经冻结她的公积金户头，我们感到震惊和愤怒。

当局说，冻结她的公积金户头，是为了避免她的退休金被盗用或进行任何非法活动。当局冻结她户头之前应查明真相，此举不但使我们蒙受不白之冤，也侮辱了我和家人的人格。

我们通知当局我老伴的病情后，他们要我家人请律师上法院申请庭令解禁。这对我和家人无疑是雪上加霜。

当局掌握我老伴的“养命钱”，我为老伴感到悲哀，感觉被所谓照顾老弱病人的政策给遗弃了。

TLDR: Wife got unconsious, husband called CPF up to withdraw money. CPF says need wife to go down personally. CPF then freeze the wife's account as the husband said that the wife is unconscious to prevent misuse of funds. Husband claims that CPF ask him to hire a lawyer to unfreeze the fund.

Personal opinions:

1) This is just the opinion of a person and doesn't paint the full picture as CPF's response isn't there. Being an opinion, it is written to paint the person in a good light and thus unreliable.

2) The money is still there and it's a totally understandable response for CPF to freeze it since the person is unconscious and not able to handle her funds.

3) The user who posted this is just trying to stir shyt in an otherwise serious thread on CPF. This kind of unconfirmed post should be on EDMW rather than MM.

Post has been reported as such.