FRS or ERS?

[Okenba]

To cater to short lifespan, withdraw as much as you can and buy life insurance. done.
buy term life for higher payout since you're gonna die early anyway.

 

[DevilPlate]

To cater to short lifespan, withdraw as much as you can and buy life insurance. done.
buy term life for higher payout since you're gonna die early anyway.

Buy term life for the surviving spouse?

Short life might as well lead a single life, have fun and YOLO

 

[DevilPlate]

That is the approach currently but I am asking a middle path cannot be reached for both dying young and dying old? It must be very rigid only cater for dying old? Those dying young does contribute to the pool to feed those dying old so shouldn't a better treatment be made out for them i.e those dying young?

Based on data mah….simi die yng die old wah lau

median mortality around 83yo right?

i tell u wat, renounced citizen and move to JB and YOLO since u already know yr days are numbered

 

[iceblendedchoc]

You still don't get my earlier suggestion. The pool scheme is flawed and tilted heavily to long life ppl favor. It give little benefits (if any) to short life ppl. This is the issue I am trying to address.

Anyway nevermind thanks for replying.

i said already the pool scheme is calculated by actuaries so there will always be more money in the insurance pool than payout.

PS. If you want any chance to change the system, must vote the pap first out but that is another thing all together.

There are a few options to get all the money out. Migrate out of singapore and dun hold SG citizenship. Buy a similar product (which there is none in the market from any financial institutions ) to opt out of CPF Life.

There is only one option if none of the above works, limit what you put in CPFB.

 

[sohguanh]

There are a few options to get all the money out. Migrate out of singapore and dun hold SG citizenship. Buy a similar product (which there is none in the market from any financial institutions ) to opt out of CPF Life.

There is only one option if none of the above works, limit what you put in CPFB.

Actually I am just waiting for readers to propose the above two which I seldom see in this forum. But in other forums more other creative ways besides the above two points though. Finally some post to "balance" out this thread. For short life ppl above two points are your options. For other options can surf other forum (not hwz of cuz) basically the anti-CPF readers gather and share ideas.

 

[iceblendedchoc]

Actually I am just waiting for readers to propose the above two which I seldom see in this forum. But in other forums more other creative ways besides the above two points though. Finally some post to "balance" out this thread. For short life ppl above two points are your options. For other options can surf other forum (not hwz of cuz) basically the anti-CPF readers gather and share ideas.

Well, we try and strive to be politically correct in MMM. Other forums are for discussion like these.

 

[anddrool]

Life expectation statistics in SG from Singstat

Male Life Expectancy At Birth (Residents): 80.7
Female Life Expectancy At Birth (Residents): 85.2
Total Life Expectancy At Birth (Residents): 83

https://tablebuilder.singstat.gov.sg/table/TS/M810501

 

[DevilPlate]

i said already the pool scheme is calculated by actuaries so there will always be more money in the insurance pool than payout.

PS. If you want any chance to change the system, must vote the pap first out but that is another thing all together.

There are a few options to get all the money out. Migrate out of singapore and dun hold SG citizenship. Buy a similar product (which there is none in the market from any financial institutions ) to opt out of CPF Life.

There is only one option if none of the above works, limit what you put in CPFB.

For the better or worst?

 

[junlove]

I don't like it personally, as it's a 'forced' annuity, my laopeh's time no such thing, the saving grace is that it's still the best annuity available.

I can see why it's good for the Govt and for the People. So, also hard to complain.

At least got choice of BRS,FRS and ERS. For myself, i will never opt for the higher ERS, i prefer liquidity, also family genes not very stronk, so the bet is skewed for me

 

[anddrool]

Govt considers the bigger picture and standard/escalating plan pays for the bigger picture (i.e. the pool). Basic plan will be gone soon anyways so I may not have this option when I need to choose.

Not necessary.
For basic plan actually does contribute to the pool in a huge way.
It is very likely that CPF life basic policy holder does not have the chance to use CPF life basic payout since it only starts at age 90.
Hence the CPF basic premium interest generated from age 65 will stay in the pool. As long as the policy holder does not live beyond 90 years old. The more interest the premium it will generate and benefit pool. The interest generated is very significant.

Because of this, there is not much reason for basic to be removed.

No matter which CPF life plan a person choose, CPF life is able to manage the payout. It is designed to be that way. In fact, I think the pools will have plenty of surplus.

 

[DevilPlate]

Not necessary.
For basic plan actually does contribute to the pool in a huge way.
It is very likely that CPF life basic policy holder does not have the chance to use CPF life basic payout since it only starts at age 90.
Hence the CPF basic premium interest generated from age 65 will stay in the pool. As long as the policy holder does not live beyond 90 years old. The more interest the premium it will generate and benefit pool. The interest generated is very significant.

Because of this, there is not much reason for basic to be removed.

No matter which CPF life plan a person choose, CPF life is able to manage the payout. It is designed to be that way. In fact, I think the pools will have plenty of surplus.

I think basic plan will stay but they might tweak the payout among the 3 plans as time goes by.

 

[anddrool]

If I can choose, I will rather have the old RSS.

Using the current CPF life payout amount, the old RSS is able to last until 95 years old.
Of course, RSS does not mean payout for life. However payout till 95 years old is good enough. And it will have even more bequest for nominee. Whatever interest generated is in the RA account. Straight forward and clean cut.

 

[DevilPlate]

Life expectation statistics in SG from Singstat

Male Life Expectancy At Birth (Residents): 80.7
Female Life Expectancy At Birth (Residents): 85.2
Total Life Expectancy At Birth (Residents): 83

https://tablebuilder.singstat.gov.sg/table/TS/M810501

https://www.worlddata.info/life-expectancy.php

 

[DevilPlate]

If I can choose, I will rather have the old RSS.

Using the current CPF life payout amount, the old RSS is able to last until 95 years old.
Of course, RSS does not mean payout for life. However payout till 95 years old is good enough. And it will have even more bequest for nominee. Whatever interest generated is in the RA account. Straight forward and clean cut.

Yes i do agree. Transparent and straightforward.

CPFLife is more sustainable tho in a way.

 

[jywy2005]

In the case of my 86 yo parents, my Dad medical fees of $40K was fully covered by PG subsidies, MediShield and Medisave. Zero cash. Now we know why the old PG and boomers will vote for the incumbent.

I will be 55 next year. So going to do SA shielding and take FRS, even though I have exceed ERS already. I rather keep my money in SA account and grow 4% interest which is the same as in RA.

 

[dork32]

the only thing is we dunno how long we can live. But instead of planning for dying young, plan for dying old

you are right, we should always play safe. in fact i am always for the escalating plan, until i saw the numbers that they provided.

but the problem is we should also the at the numbers. the numbers really dont look right for standard.

 

[dork32]

To cater to short lifespan, withdraw as much as you can and buy life insurance. done.
buy term life for higher payout since you're gonna die early anyway.

why buy life insurance? money to a dead man is worth nothing. you are not going to see your money anyway.

also you can save the insurance premium and give them as gifts to your loved ones. you do not have to wait till you die that you give money to them. give it to them bnow

 

[~sabaisabai~]

In the case of my 86 yo parents, my Dad medical fees of $40K was fully covered by PG subsidies, MediShield and Medisave. Zero cash. Now we know why the old PG and boomers will vote for the incumbent.

I will be 55 next year. So going to do SA shielding and take FRS, even though I have exceed ERS already. I rather keep my money in SA account and grow 4% interest which is the same as in RA.

at least more liquidity

 

[~sabaisabai~]

Anyway whether or not to max RA to ERS or leave it at FRS also largely depends on how much excess spare cash u have by 55yo….

Let say i have 1M spare cash….js top up to max ERS la….build up extra safety net aka peace of mind.
Let say only got 100-200k spare cash, wah lau eh top up simi sai…..i might even consider BRS lor whahahaha

when one has met FRS or ERS, can still opt for BRS?

 

[Okenba]

Life expectation statistics in SG from Singstat

Male Life Expectancy At Birth (Residents): 80.7
Female Life Expectancy At Birth (Residents): 85.2
Total Life Expectancy At Birth (Residents): 83

https://tablebuilder.singstat.gov.sg/table/TS/M810501

For those considering which plan, life expectancy at 65 would be more relevant.
Male Life Expectancy At 65 (Residents): 84
Female Life Expectancy At 65 (Residents): 87.3
Total Life Expectancy At Birth (Residents): 85.7