FRS or ERS?

[BrandonnC]

Many brothers here seem great investors and financial managers, plotting charts and predicting trends. But that is because you are relatively young and mentally agile now.

But when one reaches 75/80 and beyond, do take into consideration that you are no longer so, and worst, one could be demented. From my experience with some seniors, some begin to lose interest and ability in managing the simplest transaction (like counting money or change); and are easily conned as some may lose the feel for prices of things.

Working on the assumption that I may end up in that state at an advanced age having no money at all with all investments/savings being cheated or scammed away, I took up ERS to aim for a fixed predictable ERS payout, I also have a private annuity to supplement the fixed payout too.

 

[andyhtc]

True. But if we plan for huge inflation etc, it might be cannot retire at all. So depressing. So I just plan for simple retirement.

A simple retirement should be fine.

Most likely I do some consulting work to keep myself active and beat the inflation.

Fortunately, I have some rental income as a buffer.

 

[andyhtc]

Actually, $2k can lead quite a decent life. Currently, my basic expenses less than $1k a month. I save a lot on transport as I’m used to taking bus and MRT. Yesterday I had lunch at a cafe. Soup. Main course. Carrot cake dessert. and a cappuccino. All in about $30. Can go for a resto meal 3 times a week. One month also less than $400. Every 2-3 months also can go for holiday.

The main worry is the medical cost.

The $3k self-payment could be raised such that one ends up paying for most of the minor medical treatments despite having hospitalisation insurance.

 

[item2sell]

The main worry is the medical cost.

The $3k self-payment could be raised such that one ends up paying for most of the minor medical treatments despite having hospitalisation insurance.

please don’t assume you can afford to be treated in singapore hospital after 2028.

I intend to go Thailand for huge medical surgery after I retire

 

[magicming]

The main worry is the medical cost.

The $3k self-payment could be raised such that one ends up paying for most of the minor medical treatments despite having hospitalisation insurance.

All that will have to be taken care of by non-CPF LIFE funds. All the OA, SA and all the other savings/assets most people have.

 

[magicming]

Many brothers here seem great investors and financial managers, plotting charts and predicting trends. But that is because you are relatively young and mentally agile now.

But when one reaches 75/80 and beyond, do take into consideration that you are no longer so, and worst, one could be demented. From my experience with some seniors, some begin to lose interest and ability in managing the simplest transaction (like counting money or change); and are easily conned as some may lose the feel for prices of things.

Working on the assumption that I may end up in that state at an advanced age having no money at all with all investments/savings being cheated or scammed away, I took up ERS to aim for a fixed predictable ERS payout, I also have a private annuity to supplement the fixed payout too.

Good point. Definitely.

 

[magicming]

please don’t assume you can afford to be treated in singapore hospital after 2028.

I intend to go Thailand for huge medical surgery after I retire

I’m not aware. But why after 2028? Thanks.

 

[Oldnerd79]

Actually, $2k can lead quite a decent life. Currently, my basic expenses less than $1k a month. I save a lot on transport as I’m used to taking bus and MRT. Yesterday I had lunch at a cafe. Soup. Main course. Carrot cake dessert. and a cappuccino. All in about $30. Can go for a resto meal 3 times a week. One month also less than $400. Every 2-3 months also can go for holiday.

Huh you only eat 3 times a week? How about other meals? Utilities groceries internet town council household maintenance all these no need money? 1k sure or not. Oh n haven't even include insurance, supplements, toiletries, handphone bill

 

[sohguanh]

Actually, $2k can lead quite a decent life. Currently, my basic expenses less than $1k a month. I save a lot on transport as I’m used to taking bus and MRT. Yesterday I had lunch at a cafe. Soup. Main course. Carrot cake dessert. and a cappuccino. All in about $30. Can go for a resto meal 3 times a week. One month also less than $400. Every 2-3 months also can go for holiday.

2k quite ok but if can do within 200 minus one zero will be better

 

[sohguanh]

Huh you only eat 3 times a week? How about other meals? Utilities groceries internet town council household maintenance all these no need money? 1k sure or not. Oh n haven't even include insurance, supplements, toiletries, handphone bill

Agree which is why each item need to scrutinise. Water, electricity need control. No aircon save a lot electricity. Water from washing machine need fill up pail and use to flush toilet bowl for urine. Pangsai no choice may need flush. Town council fees no run away. Phone bill choose say Simba. Fibre broadband look for cheapest. Me plan to tackle all these within 200 per month and that include food I eat. Part of plan when retire no work do can do this side project. Exercise brain and same time save monies.

 

[Oldnerd79]

Agree which is why each item need to scrutinise. Water, electricity need control. No aircon save a lot electricity. Water from washing machine need fill up pail and use to flush toilet bowl for urine. Pangsai no choice may need flush. Town council fees no run away. Phone bill choose say Simba. Fibre broadband look for cheapest. Me plan to tackle all these within 200 per month and that include food I eat. Part of plan when retire no work do can do this side project. Exercise brain and same time save monies.

U ok or not? All within 200? Just food alone is impossible already.

 

[sohguanh]

U ok or not? All within 200? Just food alone is impossible already.

Then you better go for ERS and pray enough.

1 packet of rice vermicelli is $1.15 for me can eat 4-5 meals
Cabbage depend on weight is $1-2 for me can eat 4-5 meals
Egg pack of 30 $8
Challenging indeed which is why I say is a project to see can or not. Basically you need to live and eat like a monk.

 

[Mephist0pheLes]

Agree which is why each item need to scrutinise. Water, electricity need control. No aircon save a lot electricity. Water from washing machine need fill up pail and use to flush toilet bowl for urine. Pangsai no choice may need flush. Town council fees no run away. Phone bill choose say Simba. Fibre broadband look for cheapest. Me plan to tackle all these within 200 per month and that include food I eat. Part of plan when retire no work do can do this side project. Exercise brain and same time save monies.

live until like that, whats the point?

 

[magicming]

Huh you only eat 3 times a week? How about other meals? Utilities groceries internet town council household maintenance all these no need money? 1k sure or not. Oh n haven't even include insurance, supplements, toiletries, handphone bill

No lah. Mostly I cook or assemble my own food. My rough basic expenses:

PUB: 60

Home: 120

Hp: 35

Internet: 40

Transport. $60

Health: 100

Medical Insurance: 200

Food: 300 mainly groceries

Misc: 100

About $1015. But I seldom spend the full $300 on food.

Anyway, the other $1k is for fun. And of course there is further money for whatever expenses that may suddenly appear.

 

[magicming]

There are all sorts of ways to have good fun on smaller budget.

I share one with you. I have 3 frenz. We all join Jumbo Rewards for $20. But get 20 jumbo dollars back. Every birthday u get $100 voucher for $200 spend. So we will order one chilli crab and other stuff. Bill will be about $240. But minus $100. Means $140. So each person only $35. For a rather splendid meal. There is also a Teochew restaurant voucher. Same system. We’ve been doing this for years.

 

[andyhtc]

No lah. Mostly I cook or assemble my own food. My rough basic expenses:

PUB: 60

Home: 120

Hp: 35

Internet: 40

Transport. $60

Health: 100

Medical Insurance: 200

Food: 300 mainly groceries

Misc: 100

About $1015. But I seldom spend the full $300 on food.

Anyway, the other $1k is for fun. And of course there is further money for whatever expenses that may suddenly appear.

$1.5k is a lot more realistic these days.

I am more willing to spend more on food and some entertainment/travel so likely I will need around $2k when I retire (in today's purchasing power).

 

[crimsontactics]

To change it into a simple form of questioning, simply ask yourself if you would like to pay a higher premium for a better longevity insurance...

Cos if you pick ERS, you are likely to lose more money than FRS, but you will be rewarded with a more secured retirement...

 

[BBCWatcher]

I intend to go Thailand for huge medical surgery after I retire

That's not a reliable plan. How do you travel to Thailand for medical care if you're incapacitated or otherwise unfit for travel? If (as one of many examples) your appendix bursts you're not going to wait for the lower fare on Scoot to Bangkok next week.

Retirement plans should be realistic if they're going to be viable.

Cos if you pick ERS, you are likely to lose more money than FRS, but you will be rewarded with a more secured retirement...

"Lose more money than FRS"? That doesn't make any logical sense. Each additional RA dollar from FRS to ERS yields exactly the same life annuity output as each additional RA dollar from BRS to FRS.(*) If you believe that you're losing money then (by that logic) you'd choose BRS-level CPF LIFE. Or even opt out of CPF LIFE completely by buying (if you don't already have one) a qualifying alternative life annuity.

(*) Possibly a little better depending on the assumptions you make about your other CPF account balances, bonus interest, and payout plan selection.

 

[dork32]

To change it into a simple form of questioning, simply ask yourself if you would like to pay a higher premium for a better longevity insurance...

Cos if you pick ERS, you are likely to lose more money than FRS, but you will be rewarded with a more secured retirement...

ERS or BRS, there are no losses. there are gains (or at least breakeven). percentage gain for ers is lower than frs which is lower than brs.

 

[DevilPlate]

No lah. Mostly I cook or assemble my own food. My rough basic expenses:

PUB: 60

Home: 120

Hp: 35

Internet: 40

Transport. $60

Health: 100

Medical Insurance: 200

Food: 300 mainly groceries

Misc: 100

About $1015. But I seldom spend the full $300 on food.

Anyway, the other $1k is for fun. And of course there is further money for whatever expenses that may suddenly appear.

Wow $300 on food and groceries is student life liao! $10/day power.
How about essentials like toilet paper etc haha

Nowadays, i can easily spend $10/meal at foodcourt. $8 nasi pandang set +$2 drink opss

*i only have 1 item spend less than u….$10 on my mobile plan lol