CPF Life - Standard Plan

[Atilas]

Bro @Spike, we are the nicest beagles here and pssst! I lifted it off the Red Baron!

Beagles are JSKM! Border collies can only lie flat and hope for the best.

 

[Loratadine10mg]

so called Lifelong Income Fund

As long u r senile

 

[iMac]

sagu reveals the beautiful mystery of CPF Life and it is actually quite simple


At around age 84, the accumulated monthly payouts would be about equal to your age 65-70 RA amount …….

And for those on Standard Plan and still living, they continue to receive their monthly payout which at about age 88, the accumulated monthly payout would be equal to their age 65-70 RA amount plus (pooled) compounded interests. After about age 88 and still living, they will continue to receive their monthly payout from the common interests pool from other Singaporeans until they pass on.


Or for those on Basic Plan, and still living, they continue to receive their monthly payout which at about age 92, the accumulated monthly payout would be equal to their age 65-70 RA amount plus their own (non-pooled) compounded interests. After about age 92 and still living, they will continue to receive their monthly payout from the common interests pool from other Singaporeans until they pass on.



#saguwisdom

Hi SaGu, Am I correct to say that for CPF Life - Standard Plan....

If you died before 88 yr old = 不划算

If you died at 88 yr old = OK

If you live pass 88 yr old = 划算

 

[van123]

I said I chosed to start at 65 because I could start anytime between 65-70.

Will CPF notify u at age 65 that u have to choose what age to get payout
OR just diam diam and ownself have to keep track and choose your option before yr birthday mth

 

[Jay6789]

i also wonder why it was not wiped? aren't all funds in RA be used as CPF Life premium?

This will make people want to top to increase monthly payout.
But if not careful, will top up from OA and 43k in RA...meaning OA used for top up RA will be locked up and cannot be wiithdraw.
I also wonder why CPF reserved the 43k in RA for us. Most people expect standard plan CPF life payout at 65 will use up all the RA.

 

[Andrew833]

3 months before age 65 then can choose to start CPF Life at age 65 or 70 and what plan.

 

[eggie011]

Will CPF notify u at age 65 that u have to choose what age to get payout
OR just diam diam and ownself have to keep track and choose your option before yr birthday mth

They will notify you 3 months before you turn 65. You can take action then if you want to start at 65 or just ignore until you are ready to start.

You can start anytime you want after that up to 70. E.g. 65.1, 65.2 and so on, lol. Just fill in the form at CPF website.

 

[matt1618sg]

wonder did you had ers or frs when u started? i wanna be on basic too, but information is very little...

I had FRS which for me was $161K. The difference in payout between Basic and Standard was about $200 pm iirc. So $1K pm vs $1.2K pm. I have other sources of income so the $200 didn't appeal to me. Also, be realistic about when you die. Unless you are a multi-millionaire with private health team on call, you think you'll live to 80, 85, 90? Even Dolly Parton with her estimated US$600M just died this week at 80. Depends on your family genes, your lifestyle, your risk factors like smoking, drinking, high blood pressure, high cholesterol, etc. Everybody is different so do your own homework and pick the plan that's best for you. Don't pick a plan based on what other people pick.

 

[SaGu]

Hi SaGu, Am I correct to say that for CPF Life - Standard Plan....

If you died before 88 yr old = 不划算

If you died at 88 yr old = OK

If you live pass 88 yr old = 划算

sagu does not suggest to game the CPF Life plans to try to extract the maximum benefits from it but rather considered it as a national retirement payout system to give every Singaporeans some financial security and peace of mind as they age older because at whichever age that you pass on, you will be guaranteed the full payment of your age 65-70 RA amount to you or your beneficiary.

sagu suggest if one takes the example of car or health insurance where one pays the premiums every year and if one doesn’t make a claim, does that person loses out to another who makes a claim that is more than the premiums every year paid ?

Nonetheless sagu sincerely wishes @iMac and everyone here a long long life to receive as much as possible their monthly payout from their CPF Life plans



#saguwisdom

 

[eggie011]

I had FRS which for me was $161K. The difference in payout between Basic and Standard was about $200 pm iirc. So $1K pm vs $1.2K pm. I have other sources of income so the $200 didn't appeal to me. Also, be realistic about when you die. Unless you are a multi-millionaire with private health team on call, you think you'll live to 80, 85, 90? Even Dolly Parton with her estimated US$600M just died this week at 80. Depends on your family genes, your lifestyle, your risk factors like smoking, drinking, high blood pressure, high cholesterol, etc. Everybody is different so do your own homework and pick the plan that's best for you. Don't pick a plan based on what other people pick.

If your FRS is 161K, it is the same as mine. That means you are also 65 this year. Have you started your CPF Life yet? Or very soon? Or intending to delay it?

 

[Geminiboy]

choose standard plan means game over already unless u live till an old ripe age.... MIW is very sly to call it basic and standard plan.... most will just take standard since it is called "standard".....


Read HWZ Forum Rules!

Care to explain?

 

[wutawa]

choose standard plan means game over already unless u live till an old ripe age.... MIW is very sly to call it basic and standard plan.... most will just take standard since it is called "standard".....

I will choose standard and "game over" because I don't intend to live long.
standard plan can get the most money the fastest.
escalating gives money the slowest. good for > 90yo long lived.

 

[weng0202]

sagu submit when you reached your 55th birthday, the $220K in your SA will be moved to your newly created RA account and if you have $700K you can consider topping up your RA account up to ERS amount of $440,800 to immediately earn the 4% interest in your RA account or leave them in OA account with the flexibility of withdrawal at any time and earn 2.5% interest in your OA account. The more money (including the 4% interest) in your RA account the higher your payout when you starts CPF Life at 65 to 70 years old but money in your RA account stays in your RA account and cannot be withdrawn.

At age 65 to 70 years old when you authorize CPF Board to commence your monthly CPF Life payouts, you will have a one-time option of withdrawing 20% of your RA amount (excluding top ups) from your RA account and if you choose to withdraw the 20%, the monthly CPF Life payout amounts will be lower than if you had not withdrawn the 20% and these differences in monthly payouts amount are demonstrated on the CPF website including selecting your CPF Life plans, ie. Standard, Basis or Escalating.


#saguwisdom

Does the topups to RA include the amount you transferred to RA from OA?

 

[game goondu]

I had FRS which for me was $161K. The difference in payout between Basic and Standard was about $200 pm iirc. So $1K pm vs $1.2K pm. I have other sources of income so the $200 didn't appeal to me. Also, be realistic about when you die. Unless you are a multi-millionaire with private health team on call, you think you'll live to 80, 85, 90? Even Dolly Parton with her estimated US$600M just died this week at 80. Depends on your family genes, your lifestyle, your risk factors like smoking, drinking, high blood pressure, high cholesterol, etc. Everybody is different so do your own homework and pick the plan that's best for you. Don't pick a plan based on what other people pick.

the problem here is that you can't choose the year that you will die. short of jumping from 20th sty hdb flats.

what if you really live till 90, 95, 100?

 

[matt1618sg]

If your FRS is 161K, it is the same as mine. That means you are also 65 this year. Have you started your CPF Life yet? Or very soon? Or intending to delay it?

Already getting $1,031.95 every month. Have to say CPF very efficient. My birthday middle of the month but beginning of the month, CPF already credited me the $1K and subsequently, every beginning of the month, I get $1K.

 

[WoollyMammoth]

This is the best website I found. https://drwealth.com/cpf-life/
It uses IRR.

 

[matt1618sg]

the problem here is that you can't choose the year that you will die. short of jumping from 20th sty hdb flats.

what if you really live till 90, 95, 100?

Live to 90, 95, 100? Unlikely. I am a realist and I know this won't happen.

Anyway, my thinking is, whenever I die, I want all my remaining RA to go to my family. In Standard Plan, only the remaining principal RA goes to my family, the Returns remain in the Fund.

Example.
Beginning RA Principal = 160,000
Suppose I die after 10 years:
10 years Interest in RA = 60,000
10 tears Returns in CPF Life Fund = 60,000 (need not be the same as depends on yearly investment returns but assume it's the same for illustration)
10 years payouts Basic Plan = 120,000 (@ 1,000 pm)
10 years payouts Standard Plan = 144,000 (@ 1,200 pm)
What my family gets:
Basic = 160,000 + 60,000 - 120,000 = 100,000
Standard = 160,000 - 144,000 = 16,000 (you do not get the 60,000 Returns, this stays in the Fund)

It's more complicated than this so you should get someone who knows Accounting to do the actual calculations for you. Or maybe you ARE an Accountant and you know this better than me!

 

[Optrex]

Care to explain?

the difference comes in if u kick the bucket earlier. your bequest is sigficantly different since more will not come back to your beneficiaries if u take the standard plan since more of it will be inside the common pool. common pool means belongs to everyone and not u.


Read HWZ Forum Rules!

 

[keenklee]

Already getting $1,031.95 every month. Have to say CPF very efficient. My birthday middle of the month but beginning of the month, CPF already credited me the $1K and subsequently, every beginning of the month, I get $1K.

IMHO.
DId you take out the 20% from RA during the time of opt in for standard ?

 

[Geminiboy]

the difference comes in if u kick the bucket earlier. your bequest is sigficantly different since more will not come back to your beneficiaries if u take the standard plan since more of it will be inside the common pool. common pool means belongs to everyone and not u.


Read HWZ Forum Rules!

It’s true, but it’s not immediately game over unless one dies quite soon after. If you add up the extra payouts under Standard Plan vs interests foregone, it will balance out eventually. After that, the Basic Plan loses out significantly.