CPF Life Tier Selection

[henrylbh]

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

Funds tied up in another annuity is no bad if it pays better than CPF Life. But there is none in the market.

 

[henrylbh]

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.

I would think it's better that husband and wife both have ERS to be on the safe side of retirement before taking other risks.

 

[dork32]

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.

leave cash (100k) and CPF (100k)
vs cpf (200k) to loved ones is no difference.

you should be looking at which one will leave your loved ones more. Eg if you do not defer withdrawal, you are probably case 1. if you defer, it may be case 2.

I will make a decision based on which one gives more.

 

[henrylbh]

leave cash (100k) and CPF (100k)
vs cpf (200k) to loved ones is no difference.

you should be looking at which one will leave your loved ones more. Eg if you do not defer withdrawal, you are probably case 1. if you defer, it may be case 2.

I will make a decision based on which one gives more.

Still got difference. Case 2 beneficiary can leave money in cpf for 7 years to earn interest if money is not needed immediately.

 

[thekang]

You can treat CPF Life as "insurance against living too long". Go for high monthly payout if you think you can live long, or you need it to cover your expenses. Go for BRS if you don't really need the insurance.

 

[qhong61]

I would think it's better that husband and wife both have ERS to be on the safe side of retirement before taking other risks.

But why ERS?

 

[dork32]

Still got difference. Case 2 beneficiary can leave money in cpf for 7 years to earn interest if money is not needed immediately.

the more you leave in your cpf, the more the garmen take out to pay cpf life. is interest earned able to offset the amount deducted from cpf life?

 

[01asdf]

But why ERS?

Max out the best annuity available so far? At least so far, nobody has shared any credible better alternatives, just trolled about how "they're out there but cannot tell anyone".

 

[WWH123]

There is no private annuity plan that beats CPF Life - period. If there is, let me know. Go for ERS if you can.

 

[qhong61]

There is no private annuity plan that beats CPF Life - period. If there is, let me know. Go for ERS if you can.

But with ERS, you cannot withdraw if you should need cash in the future. Only by monthly payment.

 

[Mecisteus]

But with ERS, you cannot withdraw if you should need cash in the future. Only by monthly payment.

Logically, one should go for the highest plan if the retiree is cash rich or if the retiree is having other supplementary portfolio with stocks and properties.

Since there is no other better annuity plan than CPF Life, then it makes sense to maximize the government benefits.

Of course if you can DIY better than the government benefits, then you minimize your exposure to CPF Life.