When one pass on the expense is reduced by half. Assuming hdb is paid, which mine is
No, that's not correct. For example, the household's electricity bill isn't cut in half when one spouse dies. There's typically some household expense reduction, but it's not half. Sometimes expenses go
up because elderly spouses who support each other no longer do, then requiring some extra home care and associated expense.
There is a genuine misalignment here that requires a little careful thought and planning, at least if you're serious about it. And I think you should be. You could be the first one to go, and presumably you care a great deal about your spouse or partner's well being.
The better financial solution to this particular class of problems is what's called an "escalating, joint/contingent life annuity." The escalating part combats inflation, and CPF LIFE offers that option. The joint/contingent part means the couple is treated as a single unit, and the surviving spouse/partner continues receiving a monthly income for the rest of his/her life that's a particular percentage of the whole -- 75%, for example. The joint/contingent part is unfortunately not available via CPF LIFE, so you have to simulate it some other way.
As it happens, I think such a payout plan should be available -- a CPF LIFE "Partner Plan." Perhaps the government will take that idea into consideration.
