CPF life not attractive

[Peanut15]

why u all so negative. i'm aiming to leave until 120 years old. So i need CPF life

 

[DevilPlate]

Those the die before the median age subsidise those that die above the median age. If you are fit and healthy and expected to live longer than the median, CPF Life is good for you. If you check authoritative sources on the internet, VO2Max is usually considered the no.1 indicator of lifespan. Since genetics plays a part as well, if your parents both live past >80, you may have the genes to live past 80 as well.

Which to me is fair, since for Careshield Life, the healthy are subsidising the unhealthy.

I think the basic option is the one i will go for... the standard one is just too unattractive as i don't see myself living beyond 90 years old.. and the basic one allows the interest accrued in RA to pass to your beneficiary when u move on

If u are still young in your 30/40s, u might be able to benefit from major medical breakthru/advancement due to AI.

Some forecast future AI will extend average lifespan to 100 and beyond
At that time CPFLife will also drop their payouts significantly tho

 

[DevilPlate]

CPF life allows us to take greater draw-down risks during the retirement age, with less worry for sequence of returns risks. I think its a worthwhile trade-off.

Yes this is soooooo true!

to add further, let say u max ERS CPFLife X2 for a couple, you would be able to spend more freely during retirement since u already secured a safety buffer net foundation.

Other asset classes are subjected to market corrections and there is always a lingering fear to drawdown and spend

 

[royalmix]

CPF life allows us to take greater draw-down risks during the retirement age, with less worry for sequence of returns risks. I think its a worthwhile trade-off.

When your other sources of retirement income are uncertain or not guaranteed, you have no choice but pay more "cost of insurance" with CPF Life. But We thank you for your contribution to the pool to help others in need, especially so if your life-span happened to be shorter than expected, cos this scheme needs a balance of funds to sustain itself for the long term.

 

[royalmix]

why u all so negative. i'm aiming to leave until 120 years old. So i need CPF life

If you have heard the 1m65 guy, he wants to live beyond 100 to milk >1m from CPF Life. So he is working very hard to keep himself healthy. But Health is not the only equation or determinant of how long you can live.

 

[JuniorLion]

the effective interest rate is around 2.4% pa. And not the 4% that is being advertised.

Did they advertise it as "your money is earning 4% interest a year" or "your internal rate of return (XIRR) is 4%"?

Check the wording again.

 

[DevilPlate]

When your other sources of retirement income are uncertain or not guaranteed, you have no choice but pay more "cost of insurance" with CPF Life. But We thank you for your contribution to the pool to help others in need, especially so if your life-span happened to be shorter than expected, cos this scheme needs a balance of funds to sustain itself for the long term.

Thats how insurance works in general.

Anyway i think current CPFLife is fair.
Those who think they gona die early, js opt for BRS and basic plan.
Others fine tune it to suit their circumstances and goal/needs

 

[RedsYWNA]

When your other sources of retirement income are uncertain or not guaranteed, you have no choice but pay more "cost of insurance" with CPF Life. But We thank you for your contribution to the pool to help others in need, especially so if your life-span happened to be shorter than expected, cos this scheme needs a balance of funds to sustain itself for the long term.

What sources of retirement income are certain and guaranteed? I am certainly keen to learn more on this!

 

[DevilPlate]

What sources of retirement income are certain and guaranteed? I am certainly keen to learn more on this!

SSB/SGS
But only certain and guaranteed for 10y for SSB
But then current rates even lower than above quoted EIR 2.4%

 

[royalmix]

Did they advertise it as "your money is earning 4% interest a year" or "your internal rate of return (XIRR) is 4%"?

Check the wording again.

CPF always tell you it is 4% per annum. Do you know more than 10 years ago CPFB dun even tell members at those Turning 55 years talk/seminar/briefing that CPF Life interest of 4% will go into the pool and these cohorts must join CPF Life at 55, nothing is written in the booklets too!

Read chatgpt's review on what ts posted.

 

[JuniorLion]

CPF always tell you it is 4% per annum. Do you know more than 10 years ago CPFB dun even tell members at those Turning 55 years talk/seminar/briefing that CPF Life interest of 4% will go into the pool and these cohorts must join CPF Life at 55, nothing is written in the booklets too!

Read chatgpt's review on what ts posted.

It's in the booklet. I know because my parents received a copy.

 

[royalmix]

It's in the booklet. I know because my parents received a copy.

Which year?

So they joined CPF LIfe at 55?

 

[iceblendedchoc]

If you have heard the 1m65 guy, he wants to live beyond 100 to milk >1m from CPF Life. So he is working very hard to keep himself healthy. But Health is not the only equation or determinant of how long you can live.

the actual stats is 95% of us posting here will be dead by 80

 

[limster]

the actual stats is 95% of us posting here will be dead by 80

like I said, if both parents >80 yrs, you got good chance.,

Just maintain healthy lifestyle and fitness and hope they passed down to you the genes to live >80.

 

[reddevil0728]

like I said, if both parents >80 yrs, you got good chance.,

Just maintain healthy lifestyle and fitness and hope they passed down to you the genes to live >80.

Live to >80 also no point if healthspan is short

 

[JuniorLion]

That's why I said ... do strength training, cardio, eat heathily.

 

[BBCWatcher]

the actual stats is 95% of us posting here will be dead by 80

To get serious for a moment, I just pulled up Singapore's life table which is based on past mortality experiences — including higher smoking rates, for example. So it's too pessimistic about how long future individuals in advanced age brackets will live. Assuming all male residents of Singapore (women tend to live longer) and any adult age below 80, you can't get even half cohort mortality by age 80 much less 95%.

....But if you think you'll beat the odds on the low side then...pile into CPF for your nominee(s)! If you happen to die by 70 (and haven't started CPF LIFE payouts), your nominee(s) will receive all RA dollars plus all accrued interest.

 

[JuniorLion]

Wall of text; not much insights.

 

[gold_eagle36]

People forgot to plan based on healthy life expectancy (HLE), which is actually only 73. So don't wait till 65 man it's too late.

 

[limster]

the actual stats is 95% of us posting here will be dead by 80

Live to >80 also no point if healthspan is short

People forgot to plan based on healthy life expectancy (HLE), which is actually only 73. So don't wait till 65 man it's too late.

I suspect that our perspectives are affected by the experience of our older family members (parents, grandparents).

If both your parents live long and healthy lives past 80, you tend to be more optimistic that you too will live past 80 and have good health.

For at least the first 20 years of your life, you live in the same house, eating the same (healthy) food that they ate, and perhaps learnt similar exercise habits (some parents bring their children outdoors for walks/play/cycling more than others), and that will help in the future.