Actually, CPF does allow you opt out of CPF LIFE if you have an alternative life annuity meeting certain basic standards. But that's a separate issue. I'm just asking an even easier question: what private escalating life annuity is available that only needs to plug the Standard Plan's inflation gap -- what the name of the product is, and what the math is for that product that makes it compelling/interesting to buy. You can still use the CPF LIFE Standard Plan as part of your inflation fighting plan (the part that doesn't fight inflation but, from a few of its dollars, could fund inflation fighting), as long as you've got something realistic, viable, and a comparatively better value to combat inflation if it isn't the CPF LIFE Escalating Plan. So...what's the plan? That's my question, and it's a simple one. Name the product, and sketch out the math.
Nobody has answered this simple question yet.
You adjust your standard of living to adapt to that loss. This way, you can maintain your standard of living all the way until the end of your life, whenever that would be.
The alternative would be to live with a reducing standard of living as you age.
Everything people talk are based on some undelying assumptions which they do not explain. I share my views with assumptions as well which I do not detail all the assumptions. My views are based on my experience taking care of my parents, my own financials etc.
If u depend solely on CPF Life for the rest of your life for survival, maybe or maybe not the escalating plan will help. If u have to see how u can survive from 55 to 65 without CPF Life, how u can survive for the initial 10 years from 65 to 75, etc.
Just a little food for thought
Ok BBCW correct me if I am wrong on this => all along, u have been telling people Escalating Plan is the best cos it can help u combat inflation. Your major assumptions are this person only rely on CPF Life “income” for survival and u want to have to same standard of living as before u start payout.
Now tangent countered with “You adjust your standard of living to adapt to that loss. .....The alternative would be to live with a reducing standard of living as you age.”, changing your assumption which is more realistic to me. When I retire, I will adjust my standard of living, be more frugal, my needs and wants when I am older and retired will be different, eg I no need to buy working clothes/shoes, I eat less as we age but still nutritious, maybe more health supplements, then enjoy some travel while still mobile, etc. Meaning likely to spend more when not so old than older. Ok I stop there.
Now u are asking if there is a pte escalating plan which can plug the gap between Standard and Escalating Plan. Here u go, u are changing your initial assumptions above. Now u are suggesting if you have other sources of income, u can choose Standard Plan!
All along, most of the people here, based on their own sources of wealth and income, do not depend solely on CPF Life “income”. Dork32 had just posted other sources of income he will rely on and why he is going to choose Basic Plan.
U have been a strong advisor in your thread, telling people to invest, change allocation of assets as lifestyle or stages of life change, etc, Aren't u suggesting they have other sources of income to combat inflation? Grow money with money is one way to fight inflation right?
We all have our own methods/means of providing multiple sources of income, no need a pte escalating annuity! Is there any pte annuity which can pay better returns than RA 4%?
