FRS or ERS

[WWH123]

The difference is 83k.
Withdraw and invest oneself?
At 5%, generates $4150 per year.

 

[henrylbh]

The difference is 83k.
Withdraw and invest oneself?
At 5%, generates $4150 per year.

85% will get negative return.

 

[Wood41]

Invest in REITs & Singtel for me .

 

[koja6049]

At the time for withdrawal, you should be thinking of retirement and not returns. If you need a lump sum of money for retirement, don't put into ERS.

Learn to set priorities in life, not everything is about money

 

[WWH123]

REITs are not a sure thing. SingTel dividend is 4% iirc

Invest in REITs & Singtel for me .

 

[dork32]

At 5%, generates $4150 per year.

wrong, cpf life standard gives no interest to you. even if it is cpf life basic, you only get 4% on your second 80k

 

[henrylbh]

The difference is 83k.
Withdraw and invest oneself?
At 5%, generates $4150 per year.

Firstly have you ever invested a sum of 80k in financial instruments? Have you got consistent 4% annualised returns over a period of 10 to 20 years? If not, you are asking for trouble with your retirement money

Is it worth betting for higher return by 1% or so with the risk of capital loss?

 

[WWH123]

definitely vested a few times more than 83k for dividend alone. just that leaning towards dividend income than growth for this $ in excess of FRS. need to caution the interest rates in cpf are never guaranteed. dun take it for granted.

Firstly have you ever invested a sum of 80k in financial instruments? Have you got consistent 4% annualised returns over a period of 10 to 20 years? If not, you are asking for trouble with your retirement money

Is it worth betting for higher return by 1% or so with the risk of capital loss?

 

[BBCWatcher]

1. If you are in poor health when the time comes to decide, no.

2. If you are in reasonably good health or better, maybe. It's simply a question of how much assured lifetime income you want to have. It's the best Singapore dollar lifetime annuity available anywhere, so you don't even have to think about which Singapore dollar annuity. That's the best one. All you have to decide is how much monthly income you want to have.

People trying to compare non-sovereign and non-life income streams are really leading you astray, in my view. A sovereign's lifetime assured income payout is VERY different than anything else.

With the good health assumption, personally I expect I'll start CPF LIFE annuity payments at age 70 (i.e. defer as long as possible) and with the 2% annual increase option (for an approximation of inflation adjustments, and to "backload" the payment stream).