FRS vs ERS

[hound297]

because the interest do not go into your own account, your premium depletes very quickly. many will actually outlive the premium (age 80)

drawing from pool does not mean that you have benefited from it because you will be drawing from your own contribution to the pool. You only finish your own portion when you hit about 87, 88. It is then you become a parasite.

Ya lor. People tend to forget that they have their own contribution to the pool.

 

[kelhot2001]

Once RA created at 55, with or without FRS, no more topping up of SA (by cash or by transfer from OA) is allowed. Part of mandatory and voluntary contributions from 55 will still go into SA with no cap.

Hahaha, thanks , last 3 questions

After 55 with the creation of RA

1)BHS interest will go into SA
2)IF I have $181K which is the FRS , will it still goes to SA or OA
2)IF I have $181K which is the FRS, normal SA contribution still goes in SA?

Just want to be sure , paiseh

 

[henrylbh]

Hahaha, thanks , last 3 questions

After 55 with the creation of RA

1)BHS interest will go into SA
2)IF I have $181K which is the FRS , will it still goes to SA or OA
2)IF I have $181K which is the FRS, normal SA contribution still goes in SA?

Just want to be sure , paiseh

From age 55 with FRS -
BHS interest will flow into OA.

Mandatory and voluntary contributions will go into the respective accounts according to the allocation table.

 

[kelhot2001]

Dear Sir

We refer to your enquiry submitted via My Mailbox on 2 April 2019.

Under the LIFE Basic Plan, a portion of your Retirement Account (RA) savings (about 10%) will be deducted as annuity premium. The premiums deducted will be paid into the Lifelong Income Fund.

Your savings used to join CPF LIFE (i.e. annuity premiums) will continue to earn interest like your Retirement Account (RA) savings, which is currently at 4% per year. The interest earned on the annuity premiums will also be paid to the Lifelong Income Fund and pooled together with the interest of all CPF LIFE participants. The interest will be paid to you as part of your lifelong monthly payouts.

When you reach your payout eligibility age, you can start receiving monthly payouts from the savings in your RA until one month before you reach 90 years old. Once you reach 90 years old, you will continue to receive monthly payouts from the Lifelong Income Fund for as long as you live.

For example, assuming you are receiving $1,000 monthly, this payout amount would have included the interest that you have earned on the annuity premium.

You can also refer to this article to understand how risk pooling in CPF LIFE allows members to receive lifelong monthly payout.

We would be pleased to assist if you would like further clarification. Alternatively, you can book an appointment with us to speak to any of our officers at the CPF Service Centres.

Clear any doubt on the premium interest ?

 

[Mecisteus]

kelhot I really lol at your persistence in understanding the CPF Life Basic.

The answer is no difference from what you read on CPF.

No difference from what has been discussed here.

 

[Mecisteus]

Let me just put CPF Life Basic in another perspective.

It is actually 80-90% old RSS and 10-20% deferred Standard Plan.

Your Standard Plan starts from age 90 when your RSS runs out of money from DDA.

 

[kelhot2001]

Let me just put CPF Life Basic in another perspective.

It is actually 80-90% old RSS and 10-20% deferred Standard Plan.

Your Standard Plan starts from age 90 when your RSS runs out of money from DDA.

Lol Mike, I also reply her saying her reply is like no reply LOL
That is why the CS is always using standard template, furthur more her
premium is still using 10% , made me more distrust of her

 

[Mecisteus]

Lol Mike, I also reply her saying her reply is like no reply LOL
That is why the CS is always using standard template, furthur more her
premium is still using 10% , made me more distrust of her

They won't give a personalised answer.

Everyday got so many people asking stupid questions.

10% is not wrong also. CPF website puts 10-20%. Maybe for females, premium is on the upper limit.

 

[maple96]

Let me just put CPF Life Basic in another perspective.

It is actually 80-90% old RSS and 10-20% deferred Standard Plan.

Your Standard Plan starts from age 90 when your RSS runs out of money from DDA.

U should stop continuing to post rubbish to confuse people here!

Even after 90, the Basic Plan member will continue to receive payouts from both RA and CPF Life Pool because:

1. RA will continue to receive the extra 2% interest (900) on the 10-20% CPF Life Premium until the premium gets depleted and/or
2. RA will continue to receive up to the extra 2% interest if the member continues to maintain up to 60k combined balances in OA/SA/MA even when CPF Life premium gets depleted.

Standard Plan & Escalating Plan members only receive payouts from the CPF Life Pool and their RA never gets any interest or give payouts, after payout starts at 65-70!

 

[maple96]

Lol Mike, I also reply her saying her reply is like no reply LOL
That is why the CS is always using standard template, furthur more her
premium is still using 10% , made me more distrust of her

The latest handouts from the after 55 talk held on Mar 30 also show 10%, I wonder why. Maybe some changes but website never change

 

[kelhot2001]

The latest handouts from the after 55 talk held on Mar 30 also show 10%, I wonder why. Maybe some changes but website never change

Maybe they gotan again. LOL, anyway I damned typical one la, cannot get answer then ask in more and more precise lo. Pardon for my loso, I hitting 55 soon ma, need to secure my funds so I cannot touch it but putting in CPF life in a gamble, I am not interest no matter how high the interest is

 

[Mecisteus]

U should stop continuing to post rubbish to confuse people here!

Even after 90, the Basic Plan member will continue to receive payouts from both RA and CPF Life Pool because:

1. RA will continue to receive the extra 2% interest (900) on the 10-20% CPF Life Premium until the premium gets depleted and/or
2. RA will continue to receive up to the extra 2% interest if the member continues to maintain up to 60k combined balances in OA/SA/MA even when CPF Life premium gets depleted.

Standard Plan & Escalating Plan members only receive payouts from the CPF Life Pool and their RA never gets any interest or give payouts, after payout starts at 65-70!

OK. You are the CPF expert.

 

[henrylbh]

The latest handouts from the after 55 talk held on Mar 30 also show 10%, I wonder why. Maybe some changes but website never change

The website has recently been almost totally re-designed and something new added and something old removed and something changed. Example BP premium was 10% to 20%, then changed to 20% and now back to 10% to 20%. Even CPF Life Estimator was changed to CPF Life Payout Estimator (which is easier to understand and use) and back to CPF Life Estimator which is no useful.

Today I was trying to prepare a table that I did previously but the calculator is not friendly. I have to use Apr 1964 and 176k as current RA amount to work. If I key in Jan 1964 the calculator force you to input current RA and not what was in Jan.

 

[henrylbh]

Dear Sir

We refer to your enquiry submitted via My Mailbox on 2 April 2019.

Under the LIFE Basic Plan, a portion of your Retirement Account (RA) savings (about 10%) will be deducted as annuity premium. The premiums deducted will be paid into the Lifelong Income Fund.

Your savings used to join CPF LIFE (i.e. annuity premiums) will continue to earn interest like your Retirement Account (RA) savings, which is currently at 4% per year. The interest earned on the annuity premiums will also be paid to the Lifelong Income Fund and pooled together with the interest of all CPF LIFE participants. The interest will be paid to you as part of your lifelong monthly payouts.

When you reach your payout eligibility age, you can start receiving monthly payouts from the savings in your RA until one month before you reach 90 years old. Once you reach 90 years old, you will continue to receive monthly payouts from the Lifelong Income Fund for as long as you live.

For example, assuming you are receiving $1,000 monthly, this payout amount would have included the interest that you have earned on the annuity premium.

You can also refer to this article to understand how risk pooling in CPF LIFE allows members to receive lifelong monthly payout.

We would be pleased to assist if you would like further clarification. Alternatively, you can book an appointment with us to speak to any of our officers at the CPF Service Centres.

Clear any doubt on the premium interest ?

You showed their reply but not your query. May be the answer to your query could be found in their website. That's why like that

 

[henrylbh]

Even after 90, the Basic Plan member will continue to receive payouts from both RA and CPF Life Pool because:

Before 90 you are drawing RA balance plus interest. By 90 RA balance would be depleted.

Though you can view it your way, the payout is now basically the interest only from the pool.

Premium can be viewed as gone by 92 based on zero bequest at that age.

 

[Mecisteus]

The website has recently been almost totally re-designed and something new added and something old removed and something changed. Example BP premium was 10% to 20%, then changed to 20% and now back to 10% to 20%. Even CPF Life Estimator was changed to CPF Life Payout Estimator (which is easier to understand and use) and back to CPF Life Estimator which is no useful.

Today I was trying to prepare a table that I did previously but the calculator is not friendly. I have to use Apr 1964 and 176k as current RA amount to work. If I key in Jan 1964 the calculator force you to input current RA and not what was in Jan.

Computed as at 05 Apr 2019

The results below are based on a male member born in Jan 1965 with a Retirement Account balance of $200,000.00 at age 55, who starts his payouts at the age of 65.

I used the above parameters.

The premium seems to be about 10%.

 

[kelhot2001]

You showed their reply but not your query. May be the answer to your query could be found in their website. That's why like that

My singlish not powderful la

Dear Sir,
I would like to enquiry with regard to Basic withdrawal plan at 65 of age. I understand that this premium of 10-20 percent will be place into the Life income fund (LIF). As the interest accured from the premium of BWP, it is pooled into LIF. How do I actually withdraw out this interest ?
Is it annually withdrawal from LIF in form of payout by returning this "interest" back into my RA and i draw out from my RA or from what I read , is it accrued till I am 90(when my R funds are depleted), then I start drawing out the interest in the LIF funds. Can explain in details as I am concern of the interest earn by the premium

 

[henrylbh]

Computed as at 05 Apr 2019

The results below are based on a male member born in Jan 1965 with a Retirement Account balance of $200,000.00 at age 55, who starts his payouts at the age of 65.

I used the above parameters.

The premium seems to be about 10%.

If you use the calculator, your payout in Jan 2029 at age 65 will be calculated based on 200k as at Apr 2019. But if 200k is as at Jan 2019, the payout (and the resulting bequest) in Jan 2029 would be different because of interest accrued from Jan through Mar. That's why I say it's not for general use.

 

[Mecisteus]

If you use the calculator, your payout in Jan 2029 at age 65 will be calculated based on 200k as at Apr 2019. But if 200k is as at Jan 2019, the payout (and the resulting bequest) in Jan 2029 would be different because of interest accrued from Jan through Mar. That's why I say it's not for general use.

I think for general rule and rough estimate is OK?

For better accuracy, only CPF knows better.

 

[kelhot2001]

If you use the calculator, your payout in Jan 2029 at age 65 will be calculated based on 200k as at Apr 2019. But if 200k is as at Jan 2019, the payout (and the resulting bequest) in Jan 2029 would be different because of interest accrued from Jan through Mar. That's why I say it's not for general use.

I tested the CPF life calculators based on different month

Month - Bequest based on $181K on 65

Jan - $272K
Feb - $282K
Mar - $281K
Apr - $280K
May - $279K
Jun - $278K
Jul - $277K
Aug - $276K
Sep - $275K
Oct - $274K
Nov - $273K
Dec - $272K

So it does matter on the month of birthday