Yes, it was what I explained in this forum before and u repeat/reiterate those ideas/explanations here
Yes, I explained the hidden assumptions made by CPFB as counter argument to your repeated statement that CPF Life Basic Plan mthly payouts will decrease in the future.
And why those who choose Basic Plan should not be bothered with CPF's statement ( ie “As extra interest is earned on the combined balances in your CPF accounts, including premiums committed to CPF LIFE, up to $60,000, you will experience a gradual decrease in your monthly payouts due to the reduction in extra interest paid to your RA when these balances fall below $60,000 ):
1. They still have a huge SA balance (those who exploited the loophole/SA hack before 55) to earn 4% interest
2. They have a big 10-20% CPF Life premium based on their huge ERS RA balance at 65 or 70 still un-utilised at 90, to be utilised by about 93 or thereabout.
3. They have a max BHS in MA still un-utilised.
4. They have a huge OA to earn 2.5% interest they can withdraw annually.
5. They do not depend only on CPF Life mthly payout for survival.
Those with above and other strategies will never see their combined balances fall below 60k in their life-time! And those who choose Basic Plan will likely have those plans in place.
Too bad if u dun, then maybe u should choose other plans.
Yes, and your monthly CPF LIFE payout amount reflects your CPF Lifelong Income Fund claim, including bonus interest. These two plans do not feature the Basic Plan's typical (but not universal) out year nominal payout reductions. The Standard Plan has a steadier (and higher) nominal monthly payout, while the Escalating Plan has a steadier real payout (and an escalating nominal payout). The Basic Plan maintains a higher residual for longer than the other two plans. However, all plans feature declining nominal residuals (and even faster declining real residuals) once payouts start, and all plans have residuals that eventually fall to zero if you live long enough.
As I stated again above, those who choose Basic Plan with the above “strategies” in place will not be bothered with the Basic Plan mthly payouts.
They have more than one source of payouts to live on.
It is not “your choice” to live as long as u want, beyond 90 or 100, as there are many causes of death.
If u think u can live beyond 90/100, u dun have to choose CPF Life Basic Plan.
Even if I can live beyond 90 based on family history and I do not have dependents, I will still choose Basic Plan and start payout at 65 for my own reasons with my own strategies.
As someone put it, CPF Life Basic Plan is a good hedge if u die earlier than expected. Should u survive longer than expected, u also have no worries with your strategies in place.
To each his own.
