CPF Life Tier Selection

[WWH123]

As there are 3 tiers to choose from, should I go for the max ERS ($241.5K) and get payout of $1770 to $1920?

Or should I just go for BRS? Then withdraw the rest and buy another annuity from some insurer?

 

[SBC]

Cannot just suka suka choose. T&C applies.

 

[WWH123]

Care to elaborate? TIA.

 

[qhong61]

As there are 3 tiers to choose from, should I go for the max ERS ($241.5K) and get payout of $1770 to $1920?

Or should I just go for BRS? Then withdraw the rest and buy another annuity from some insurer?

ERS if top up in cash, cannot be withdrawn. Interest is 4%. More attractive than pte annuity. Only top up if u think u wont need liquid cash.

 

[doody_]

Based on what TS says, I think he has more than ERS.

if you can find a private plan with better payout, then you can purchase it. Else for ease, can take ERS and leave it to CPF to settle for you.

 

[WWH123]

Yes, if OA and SA combined, would be in excess of ERS.

One more thing, confirm can withdraw the balance right, after transfer to ERS?

 

[qhong61]

If u have a flat to pledge, u are allowed to withdraw the amount over the BRS. Are u 55yo tis year?

 

[WWH123]

If u have a flat to pledge, u are allowed to withdraw the amount over the BRS. Are u 55yo tis year?

Time to decide soon.
Property fully paid-up.
So can withdraw the balance over BRS?


Anyway, not easy to find a private annuity plan that can beat CPF Life.
Thing is the monthly payout for ERS is not exactly 3 times that of BRS when the when the amount pledged is (241.5K over 80.5K for 2016).
Thought split the balance to buy a couple of private annuity plans to gain that little bit more.

 

[orange_sky]

Time to decide soon.
Property fully paid-up.
So can withdraw the balance over BRS?


Anyway, not easy to find a private annuity plan that can beat CPF Life.
Thing is the monthly payout for ERS is not exactly 3 times that of BRS when the when the amount pledged is (241.5K over 80.5K for 2016).
Thought split the balance to buy a couple of private annuity plans to gain that little bit more.

How about topping up your spouse cpf so that both goes on FRS cpf life

Sent from lala using GAGT

 

[Bwjx94]

CPF Life is a hotly debated issue indeed. And I think it will be so for the coming years to come, especially those with parents or relatives near age 65.

Recently, there is a new option(announced in Aug 16) which allows one to defer payouts up to age 70. Under this option, monthly payout will increase by 6 to 7% for each year deferred.

Personally, I think that it is a better option compared to the existing CPF Life plan for people who can afford to receive their payout at a later age.

With each year deferred, the amount in the retirement account is allowed to grow and compound before it is channeled into the Lifelong Income Fund.

Besides, there is more time for individuals to consider which plan to choose (BRS, ERS or FRS) and they may be able to make a better decision based on their financial situation at that point in time.

Would like to hear some opinions on this issue.

 

[OngHuatHuat]

It is mission impossible, not just not easy.

Time to decide soon.
Property fully paid-up.
So can withdraw the balance over BRS?


Anyway, not easy to find a private annuity plan that can beat CPF Life.
Thing is the monthly payout for ERS is not exactly 3 times that of BRS when the when the amount pledged is (241.5K over 80.5K for 2016).
Thought split the balance to buy a couple of private annuity plans to gain that little bit more.

 

[soneat]

Average life expectancy table for Singapore is published in Singstats website. Male being around 81 and Female 85. Medical 'advances' may improve life expectancy but not significantly.

With the above in mind, imho for someone who has underlying medical condition and would like to leave a bequest, it would be better to choose the BRS, basic plan, payout at 65.

 

[01asdf]

CPF Life is a hotly debated issue indeed. And I think it will be so for the coming years to come, especially those with parents or relatives near age 65.

Recently, there is a new option(announced in Aug 16) which allows one to defer payouts up to age 70. Under this option, monthly payout will increase by 6 to 7% for each year deferred.

Personally, I think that it is a better option compared to the existing CPF Life plan for people who can afford to receive their payout at a later age.

With each year deferred, the amount in the retirement account is allowed to grow and compound before it is channeled into the Lifelong Income Fund.

Besides, there is more time for individuals to consider which plan to choose (BRS, ERS or FRS) and they may be able to make a better decision based on their financial situation at that point in time.

Would like to hear some opinions on this issue.

You can search some of the earlier CPF threads, where they calculated that each year of deferral will take something like 3 decades to break even. Assuming payout starts at 68, it depends on whether you think it likely to live to 98 or 100.

 

[qhong61]

CPF Life is a hotly debated issue indeed. And I think it will be so for the coming years to come, especially those with parents or relatives near age 65.

Recently, there is a new option(announced in Aug 16) which allows one to defer payouts up to age 70. Under this option, monthly payout will increase by 6 to 7% for each year deferred.

Personally, I think that it is a better option compared to the existing CPF Life plan for people who can afford to receive their payout at a later age.

With each year deferred, the amount in the retirement account is allowed to grow and compound before it is channeled into the Lifelong Income Fund.

Besides, there is more time for individuals to consider which plan to choose (BRS, ERS or FRS) and they may be able to make a better decision based on their financial situation at that point in time.

Would like to hear some opinions on this issue.

We wont know how long we are going to live. Maybe should not defer and enjoy the payout while we can.

 

[lazybee]

We wont know how long we are going to live. Maybe should not defer and enjoy the payout while we can.

I agree. Unlucky ones(e.g cancer, accidents, etc) may not even live until 70. Most people retire before 65 anyway. Go for a earlier payout and start to enjoy your life. With some planning, you will still have some excess each mth, which can be used for rainy days.

 

[Bedokian]

To add, it is also important to use other means to generate an income stream after one's retirement, be it from investments, other private annuity plans and/or property rentals.

 

[qhong61]

To add, it is also important to use other means to generate an income stream after one's retirement, be it from investments, other private annuity plans and/or property rentals.

But if we get another pte annuity plan, wont our funds be tied up again, like with cpf life? Not liquid.

 

[havetheveryfun]

We wont know how long we are going to live. Maybe should not defer and enjoy the payout while we can.

better to defer if you already have some savings and have loved ones, so that you leave more for them if you leave this world.

if you are single though, then maybe there is no point to defer it at all.

 

[orange_sky]

I won't defer anything after 65. You should optimise your returns before then. Not after.

 

[Bedokian]

But if we get another pte annuity plan, wont our funds be tied up again, like with cpf life? Not liquid.

Then perhaps build up an investment portfolio using disposal cash?

It is important that one starts an investment portfolio(s), let it grow with additional funds and/or compounding, and then by retirement it would be ready as a cash generating machine.

It is always prudent to have another income stream(s) to augment your CPF.