CPF Life Plan - Standard, Basic, Escalating --- which one better ?

[crimsontactics]

What is maintaining same standard of living means?

When a person reaches say 85 or 90 and beyond, he would naturally spend less. He no more energy even to walk to the kopi shop to lim kopi. The visit,if any, would be less then when he was 65 or 70. He no more energy to go where he used to etc.

That's not definite.

Sent from . using GAGT

 

[henrylbh]

More likely spend more $ on hospital and supplements?

That's more likely. Retirement payout is not designed for that. That's why government care more for medical needs than retirement needs to avoid that burden.

 

[Mecisteus]

That rebuttal is mixing life payouts for retirement spending with medical spending. I don't want to comment.

You still need to pay for your medical insurances if you are still keeping one.

Just like whst dork32 said, just choose a plan that suits your objectives.

There are only 3 options available.

Each plan can be a good plan if you know what you are looking for.

 

[henrylbh]

You still need to pay for your medical insurances if you are still keeping one.

Just like whst dork32 said, just choose a plan that suits your objectives.

There are only 3 options available.

Each plan can be a good plan if you know what you are looking for.

We are talking about Retirement payouts and plans.

The RA is designed for retirement needs, not medical needs. For medical needs, you need to think and plan separately from retirement needs.

 

[maple96]

Lets be more realistic

I believe most who come to HWZ moneymind already learnt how to have multiple sources of income, at least one more than their employment I hope.

There are so many proponents sharing information on BTIR (buy term invest the rest), invest in the "best" etf (equity n bonds) to grow your savings for retirement, invest in pte annuity, endowment or whole life plans, all sorts of investments to create another source of income (eg dividends, or capital gain) how to reallocate when u retire, how to drawdown, etc

Besides CPF Life, most would also have monies on OA/SA/MA. OA/SA are your other sources of income/savings u can draw on. MA u can use for medicals and paying your premiums.

So if u already have all these other sources of funds, make your own decisions. Dun tell me CPF Life is not for bequest, MA and other CPF monies can be used for bequest

edit: forgot all your assets, multiple properties earning rental income, etc

Those other sources of income should help u live in luxury with same standard of living, hopefully!

 

[JuniorLion]

I wish everyone else other than my family chooses Escalating Plan and delay payout to 70. The system needs sustainability.

 

[maple96]

I wish everyone else other than my family chooses Escalating Plan and delay payout to 70. The system needs sustainability.

oops, I better stop so your wish and mine can come true

 

[henrylbh]

I wish everyone else other than my family chooses Escalating Plan and delay payout to 70. The system needs sustainability.

Whichever plan, fund in the pool can only pay what's in there and no more. One half must sacrifice for the other half .... for it to be viable.

 

[JuniorLion]

Whichever plan, fund in the pool can only pay what's in there and no more. One half must sacrifice for the other half .... for it to be viable.

My point exactly.

 

[henrylbh]

I wish everyone else other than my family chooses Escalating Plan and delay payout to 70. The system needs sustainability.

Whichever plan, fund in the pool can only pay what's in there and no more. One half must sacrifice for the other half .... for it to be viable.

My point exactly.

I believe the funds from the 3 plans are not mixed. Each would have it's own pool. Otherwise, there would be cross subsidy.

 

[JuniorLion]

I believe the funds from the 3 plans are not mixed. Each would have it's own pool. Otherwise, there would be cross subsidy.

The escalating pool would have a lot of monies in it.

 

[windwaver]

I wish everyone else other than my family chooses Escalating Plan and delay payout to 70. The system needs sustainability.

Nobody wants to suffer and fall sick. In reality, the drop in quality of life due to sickness can begin as early as 40 onwards.

Yes, people are living longer but may not be happier or pain free. So many of my colleagues in their 40s already have many health issues.

Medical needs out of coverage will eat into retirement money.

 

[henrylbh]

The escalating pool would have a lot of monies in it.

What if only BBCW is in it At most he takes out what is his. If uplorry before finishing? Yours?

 

[JuniorLion]

What if only BBCW is in it At most he takes out what is his. If uplorry before finishing? Yours?

Pretty sure by the time I reach DDA, there will be a different set of plans.

I am looking forward to the CPF Lifetime Investment scheme though - should have sufficient time to smooth out the volatility.

 

[henrylbh]

Pretty sure by the time I reach DDA, there will be a different set of plans.

I am looking forward to the CPF Lifetime Investment scheme though - should have sufficient time to smooth out the volatility.

Before you attempt that investment which carry a high opportunity cost, make sure you can invest your OA comfortably and generate net yield of at last SMRA rate over a long period. If you are now not investing your OA, forget about investing your RA when the time comes.

 

[bin8lee]

Lots of noise (squealing?), but still no answer to my question: what's the alternative retirement plan to combat inflation? Specific escalating life annuity product and some reasonably clear math, please.

Pretending inflation doesn't exist, or that it "won't be so bad," or to "die early" (as a general rule; ELKYme could be exceptional) is simply not credible. If not CPF LIFE Escalating, what's the realistic alternative plan?

Think CPF LIFE basic + SA/OA may work fine with it.

 

[dork32]

What if only BBCW is in it At most he takes out what is his. If uplorry before finishing? Yours?

solly hor! bbc will not participate cpf life. he probably take all his cpf money and run road to his home country.

because bbc has his own lifelong annuity payout, he will not participate in the annuity best system available in the world that is guaranteed by a triple A rate garmen.

the rest of us losers need cpf life escalating to prevent ourselves from becoming a destitute.

 

[maple96]

Think CPF LIFE basic + SA/OA may work fine with it.

Especially those who are planning to shield their SA from being transferred to RA, huat liao with a huge SA earning 4% for retirement, they can afford to defer to age 70 then choose escalating plan with lower payouts for long term gains if they survive long enough. Humans are generally greedy and insurance plays with your greed and fear.

 

[henrylbh]

solly hor! bbc will not participate cpf life. he probably take all his cpf money and run road to his home country.

because bbc has his own lifelong annuity payout, he will not participate in the annuity best system available in the world that is guaranteed by a triple A rate garmen.

the rest of us losers need cpf life escalating to prevent ourselves from becoming a destitute.

If no change in CPFL scheme, I guess he will end up with basic plan and run road. Take out more first (bird in hand worth 2 in the bush) and recycle payouts as long term bond until he thinks it's enough to withdraw all at one go.

 

[maple96]

If no change in CPFL scheme, I guess he will end up with basic plan and run road. Take out more first (bird in hand worth 2 in the bush) and recycle payouts as long term bond until he thinks it's enough to withdraw all at one go.

He will shield his SA to earn max 4% interest in both SA and RA until age 69.5, then sayonara