CPF SA

[dork32]

Our understanding is not my understanding

so wat is yours?

 

[dork32]

U still have not answered or share what is your choice of CPF Life Plan based on your own criteria/factors u recommended in your earlier post

it is obvious the way he post. he is going for escalating.

 

[maple96]

Our understanding is not my understanding

agree

 

[dork32]

Doing this anaysis is what convinced me that CPFL is not only worth keeping, but maximizing up to ERS if possible.

there are a lot of people that will be going for ers here. you decision is correct since you feel that cpf life is good. if it is good, you should go all the way to ers.

unlike some people again. tell everyone cpf life is good but will go for brs.

 

[maple96]

it is obvious the way he post. he is going for escalating.

Obvious to u only

 

[maple96]

the thing is we could be entirely wrong.

.

U are implying I am wrong

 

[celtosaxon]

the problem here is because the cost of escalating plan is very high in the initial years. you will have to wait for about 12 years before catching up with standard just with the payout. and you have to wait another 15 years before the total sum + interest can over standard. you add that up, you are 93 years old by then. this is the reason why many of us as so turned off by escalating.

my calculations above show 12 and 15 years.

if an escalating plan that gives 8 and 11 years, may more will jump on board.

if it is 15 and 18 years, then just forget it.

I agree, the way it is structured today makes it very difficult for escalating to beat the other plans. In the scenarios I’ve run, it only reaches a higher IRR than the other plans in your mid to late 90’s.

That said, the difference in IRR between escalating and standard is not huge, so if the bequest is not a factor and if you have any shot at being a centenarian... it’s worth serious consideration.

 

[dork32]

Rubbish!

Rubbish!

to each its own. if i really do not have anyone to bequest my cpf to, ie i dont have siblings, parents, kids, nephew and nieces, i will choose standard.

i will not choose escalating unless they lower the cost to it.

 

[dork32]

U are implying I am wrong

which part of it is wrong?

 

[dork32]

I agree, the way it is structured today makes it very difficult for escalating to beat the other plans. In the scenarios I’ve run, it only reaches a higher IRR than the other plans in your mid to late 90’s.

That said, the difference in IRR between escalating and standard is not huge, so if the bequest is not a factor and if you have any shot at being a centenarian... it’s worth serious consideration.

correct, i have done this analysis as well. our numbers are not too different. this is why i will not choose escalating.

 

[maple96]

I agree, the way it is structured today makes it very difficult for escalating to beat the other plans. In the scenarios I’ve run, it only reaches a higher IRR than the other plans in your mid to late 90’s.

That said, the difference in IRR between escalating and standard is not huge, so if the bequest is not a factor and if you have any shot at being a centenarian... it’s worth serious consideration.

U like to tell others what to do but never like to say/share what is your choice and why based on the criteria/factors u recommended?

 

[maple96]

the thing is we could be entirely wrong.

which part of it is wrong?

"ownself check ownself"

(popular catchphrase in this GE )

 

[maple96]

to each its own. if i really do not have anyone to bequest my cpf to, ie i dont have siblings, parents, kids, nephew and nieces, i will choose standard.

i will not choose escalating unless they lower the cost to it.

He never say that "to each his own"? He say if this then do this

(good night liao lor)

 

[celtosaxon]

U still have not answered or share what is your choice of CPF Life Plan based on your own criteria/factors u recommended in your earlier post

For me, the choice is Basic due to spouse and children... the bequest is a factor for us so we have to look at the highest benefit on a collective basis. If we use current life expectancy in Singapore as a guide, Basic should deliver a 1.2% higher IRR. Even after 10 years beyond current life expectancy, it is only a 0.9% lower IRR versus Escalating. This is an acceptable loss.

 

[rrr2015]

may i know why there is this payout range 1,425 ~ 1,573 when all start at FRS 181k?

Standard Plan for those turning 55 this year.

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[henrylbh]

may i know why there is this payout range 1,425 ~ 1,573 when all start at FRS 181k?

I also don't know

Likely the range is due to the interest rates (3.75% to 4.25%) used in the calculation.

From the table, did you not notice that those who turned 55 in Jan gets quite an amount less than those after?

 

[chrisloh65]

Didn't they say that RA will earn 4% p.a. (just like SA), so why become 3.75% to 4.25%?

I also don't know

Likely the range is due to the interest rates (3.75% to 4.25%) used in the calculation.

From the table, did you not notice that those who turned 55 in Jan gets quite an amount less than those after?

 

[henrylbh]

Nice this table is very clear

Nice? That's obtained from CPF Life Estimator.

Clear? I am still trying to understand the numbers

 

[rrr2015]

yeah i noticed for those who turned 55 in Jan
maybe they not getting additional monthly accrued interest?

I also don't know

Likely the range is due to the interest rates (3.75% to 4.25%) used in the calculation.

From the table, did you not notice that those who turned 55 in Jan gets quite an amount less than those after?

 

[henrylbh]

yeah i noticed for those who turned 55 in Jan
maybe they not getting additional monthly accrued interest?

Quite clear that withdrawal (including payout, I believe) is inclusive of interest earned to the previous month. Jan payout has no accrued interest (as Dec interest has been capitalised) whereas Feb payout includes interest accrued in Jan and so forth.