CPF SA

[dork32]

There is no minimum Retirement Account balance required to participate in CPF LIFE, although obviously a very low balance won't work so well.

another rubbish statement. the alternative to cpf life is rss. as if rss works well with very low balance.

 

[maple96]

Your dad age 63, so born in 1957, before or after July?

You assume he is still in RSS or u confirmed?

Guys, dun waste time arguing until haohaowan2 answer my above questions!

U will thank me for it!

 

[crimsontactics]

another one sided argument. did not mention the downside which is rss gives a higher payout and bequest till 90

RSS don't give a higher payout because its break even age is 90, which is roughly the same as CPF Life.

It used to give a higher payout because last time the break even age is only 85.

The only advantage RSS has now is that if you die before 90, your children will get some of your money.

Sent from . using GAGT

 

[maple96]

RSS don't give a higher payout because its break even age is 90, which is roughly the same as CPF Life.

It used to give a higher payout because last time the break even age is only 85.

The only advantage RSS has now is that if you die before 90, your children will get some of your money.

Sent from . using GAGT

Why and what are u arguing about and for?

Dork32 is correct, u are wrong!

What break even age are u talking about with RSS when u dun lose a single cent? U dun even know the difference between RSS and CPF Life!

We are discussing the case study from haohaowan2. His father is not on RSS until he confirms. Now he only assumes.

Can u be patient and wait for his confirmation? If his father is on CPF Life, there is no need to talk about RSS!

 

[crimsontactics]

Why and what are u arguing about and for?

Dork32 is correct, u are wrong!

What break even age are u talking about with RSS when u dun lose a single cent? U dun even know the difference between RSS and CPF Life!

We are discussing the case study from haohaowan2. His father is not on RSS until he confirms. Now he only assumes.

Can u be patient and wait for his confirmation? If his father is on CPF Life, there is no need to talk about RSS!

RSS breakeven age means RA finish lor. So simple you don't understand?

If your RA is designed to finish at 85, obviously monthly payout is higher than if it finish at 90.

This is a free forum. I am allowed to comment whenever I want to and on whatever topics, as long as its within the rules. Who are you to tell me to be patient and not comment? Who are you to say that I can't discuss RSS even if his father is on CPF Life?

Sent from . using GAGT

 

[maple96]

RSS breakeven age means RA finish lor. So simple you don't understand?

If your RA is designed to finish at 85, obviously monthly payout is higher than if it finish at 90.

This is a free forum. I am allowed to comment whenever I want to and on whatever topics, as long as its within the rules. Who are you to tell me to be patient and not comment? Who are you to say that I can't discuss RSS even if his father is on CPF Life?

Sent from . using GAGT

Sure, u have the right to continue to talk rubbish! The rest of u can continue with him!

 

[chrisloh65]

I don't know much about CPF Life, but 1 thing for sure I know very well is that if you die early under RSS, your bequest (being the unconsumed amount) is guaranteed! - And this is contrary to what you are telling us here!
Gosh, Do you know what shiit you talking about? Can you make sure that you get your facts right before saying them here because they are just rubbish (like Shiny Things refusing (and unable) to backup with facts and evidence after sprouting some rubbish like China's banks has GARGANTUAN pile of bad loans and China property companies engaging in ponzi scheme, etc)!

There is no minimum Retirement Account balance required to participate in CPF LIFE, although obviously a very low balance won't work so well.

Amounts above the BRS could be transferred to the spouse, so that's not an option yet at this level of funding.


If this couple really has such limited funds in their CPF accounts (i.e. they haven't previously selected CPF LIFE and had premiums deducted), it's very, very hard to imagine they should be trying in any way to preserve a bequest they simply cannot afford to give. Moreover, neither the classic Retirement Sum Scheme nor CPF LIFE guarantee any bequest at all. They both reduce to zero residuals if you simply live long enough, but one big difference is that CPF LIFE pays out every month for as long as you live. The classic Retirement Sum Scheme reduces both the bequest and payouts to zero if you simply live long enough.

 

[BBCWatcher]

am i wrong to say that bequest and payout is higher before 90?

That depends on what the government is offering this particular couple -- a question that's very much worth investigating thoroughly. The government is offering some interesting incentives to participate in CPF LIFE.

again a very one sided argument.

It's a simple fact that the classic Retirement Sum Scheme doesn't guarantee either a bequest or a monthly payout. Simply live long enough, and both the bequest and payouts crash to zero. In fact, the CPF Board recently adjusted classic RSS so that the final payout age is substantially lower now.

CPF LIFE guarantees there will be monthly retirement payouts for life but does not guarantee any particular bequest.

the alternative to cpf life is rss. as if rss works well with very low balance.

It's a simple fact that CPF LIFE doesn't work well with a low Retirement Account balance because it's trying to divide a too small sum into lifetime monthly payouts. The classic Retirement Sum Scheme suffers from the same basic defect, but I never said it didn't.

 

[maple96]

Get your facts right on RSS revision in 2020, read the details here, I extracted 3 key points below:

https://www.channelnewsasia.com/new...me-payouts-to-last-till-90-years-old-12062190

“From 2020, the payout duration of the Retirement Sum Scheme (RSS) will be changed to last until 90 years old, instead of the existing age of 95,”

“Around 60,000 of those who are already receiving money through the RSS are set to receive higher payouts, which is more than one-third of the existing 160,000 RSS members. “

“The Manpower Minister said the new RSS payout rules will continue to provide “longevity risk protection for up to two in three members". “

 

[henrylbh]

Your dad age 63, so born in 1957, before or after July?

You assume he is still in RSS or u confirmed?

This is what I understand - from 1 Jan 1958 CPFL is mandatory (optional for those before 1958).

Jan to Jun 1957, RSS 131k
Jul to Dec 1957, RSS 139k

Jan to Jun 1958, CPFL 139k
Jul to Dec 1958, CPFL 148k.

 

[maple96]

This is what I understand - from 1 Jan 1958 CPFL is mandatory (optional for those before 1958).

Jan to Jun 1957, RSS 131k
Jul to Dec 1957, RSS 139k

Jan to Jun 1958, CPFL 139k
Jul to Dec 1958, CPFL 148k.

Hi guys, I see a few experts hopefully can get some insight from you guys.

I would like to know what my parents can do with their current status:

Age 63
OA: 32k
SA: 6.8k
MA: 59k
RA: 86k

Because born before 1958, still in RSS.

Not very sure if RSS is better or CPF life is better?

If CPF life is better, what would be the better choice in BRS or FRS?

If born before July 1957, 50% * RSS/FRS 131k is about 65,500.

There is a possibility his father opted to join CPF Life Standard Plan at 55, so his RA now is 50% of FRS, compounded todate 86K. Plus looking at the “big balance” in OA?

Plus he wrote "Because born before 1958, still in RSS", implies he assume, he did not confirm by checking his CPF statements.

It is very risky for sons/daughters to make assumptions about their parents CPF status to decide what they should do or ask for advice.

Until he confirms, I will prefer to reserve comments on what will happen at 65.

And after posting, he disappeared, not keen or serious to know people's feedback

 

[henrylbh]

RSS don't give a higher payout because its break even age is 90, which is roughly the same as CPF Life.

There is no such thing as breakeven for RSS. For the same sum of RA balances, the payout under RSS is generally much higher than CPFL because of the shorter duration. Under RSS, the member gets back whatever is his at any age he uplorry, but not under CPFL.

Those who met the min sum of their respective cohorts, the payout duration is about 20 years from PEA (can be 60, 62, 63, 64 or 65) or a little over 20 years because of the extra and additional extra interest.

Those will low balances will exhaust their RA well before the duration of 20 years based on min payout of $250.

Only those whose balances in RA not here and not there may have their payout stretched to about 90 because of the extra and additional extra interest.

 

[wutawa]

I don't know much about CPF Life, but 1 thing for sure I know very well is that if you die early under RSS, your bequest (being the unconsumed amount) is guaranteed! - And this is contrary to what you are telling us here!

This is a classic example of selective reading.

 

[Andrew833]

Interesting part is;
at 85, RSS still got money left for bequest.
at 85, CPFL no more money left for bequest.
Both start at 65.

For ppl like me, can't choose RSS liao correct? Since it's default.

 

[CaptainTeo]

I worry government later change law. Our SA may change

 

[chrisloh65]

I don't know much about CPF Life, but 1 thing for sure I know very well is that if you die early under RSS, your bequest (being the unconsumed amount) is guaranteed! - And this is contrary to what you are telling us here!
Gosh, Do you know what shiit you talking about? Can you make sure that you get your facts right before saying them here because they are just rubbish (like Shiny Things refusing (and unable) to backup with facts and evidence after sprouting some rubbish like China's banks has GARGANTUAN pile of bad loans and China property companies engaging in ponzi scheme, etc)!

This is a classic example of selective reading.

Please clarify what and where is the part on selective reading?
Then we can understand whether it is you or me is doing selective reading.

The below post by henry basically states the same thing that I had said.

There is no such thing as breakeven for RSS. For the same sum of RA balances, the payout under RSS is generally much higher than CPFL because of the shorter duration. Under RSS, the member gets back whatever is his at any age he uplorry, but not under CPFL.

 

[wutawa]

Interesting part is;
at 85, RSS still got money left for bequest.
at 85, CPFL no more money left for bequest.
Both start at 65.

For ppl like me, can't choose RSS liao correct? Since it's default.

Ya, like maple said. If under cpfl means llst. Bequest or not also depends on ra balance.

 

[maple96]

Ya, like maple said. If under cpfl means llst. Bequest or not also depends on ra balance.

Hello dun anyhow quote me, say what?

 

[maple96]

Someone always write stories, alot of cosmetics as my Uncle said.

Always write with big words, which are his own opinion, which mislead people.

Opinion are not CPF facts or rules!

 

[chrisloh65]

That someone furthermore has quite some supporters to support his big words and personal opinions (some of which are not true and misleading people)!

Someone always write stories, alot of cosmetics as my Uncle said.

Always write with big words, which are his own opinion, which mislead people.

Opinion are not CPF facts or rules!