Lastest S$ Deposit updates - Part 3

luvpraline

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Yah. Sometimes wonder if I should be nicer to myself and not be so thrifty. Now we like keep chasing interest. Just for a little bit more interest need to play musical chair and get headache over tnc and how to avoid fall below fee. :)

Haha indeed... sometimes i think... i save and save for retirement.. i better get to enjoy it! :s22: i think must indulge a bit in what makes us happy as long as we set aside savings regularly. But frugality is taught to me since young, cannot bring myself to buy expensive frivolous things :s13:
 

peppermint7

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A few personal finance bloggers have done it for different cohorts. If you want to do it yourself, you need to first tabulate the data from the CPF Life Estimator based on your birth date and estimated FRS for your cohort.

As for IRR, you can Google that, right?


Basic Plan – The Basic Plan offers lower monthly payouts, where payouts will be reduced gradually once your combined CPF balances (including unused CPF LIFE premiums) fall below $60,000. This is ideal if you think you are likely to pass away in your early eighties or younger.

Thanks for the explanation but why would one think he / she is going to die young ? :s11:

Isn't CPF life for ppl who worry that they have a long life but not enough $ to spend?
 
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luvpraline

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Since u quote CPF, my view is it is not true that basic plan is less for self. It is just "psycho" language. I already explained what u will lose if u chose standard, which CPF does not tell u explicitly.

I have no dependents and nominated my relative as bene. I still choose Basic based on big picture benefits.

So long u understand and know what u want, it is ok. So u want more mthly payouts.

Hi maple, can you share what are the big picture benefits? I'm also considering between basic and standard plans but haven't made up my mind yet (long way to go anyway). I'm leaning towards Basic plan so either me or my spouse won't have to suffer as much from the effects of a cut in combined payouts when 1 of us passes first.

But as you mentioned that you have no dependents, wouldn't it be better to get a higher payout for yourself via Standard? Is it because you prefer to leave more bequest to your beneficiary?
 

luvpraline

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U made the right choice as u want to take care of your spouse.

For me, I look at the big picture. I am not conned by CPF - u want higher payout, for yourself, blah blah blah, choose standard. U want leave more bequest, choose Basic. Its rubbish!

I have my own plans, with Basic, does not mean is lower payouts. I dun depend entirely on CPF LIfe payouts. So much I can share until I enjoy my strategies.

I already shared, with Basic, u get 4%+1%+1% interest, that is alot of money which Standard/Escalating will not get if I die earlier than expected. I am not worried about smaller payout even if I live past 80. Just read the articles I posted, when one is old, tendency will spend less. I know cos I take care of my parents till their last day.

Ok enough of sharing or become lo li lo so.

Thanks for sharing maple! :)
 

yongsaver

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so far i don't rem topping up SA with cash. i have transferred regularly from OA to SA till FRS reached when i was working last time. after i stopped working, i just do VC into medisave or the 3 accounts.

din realise top up to SA with cash can only come out 65 onwards via CPF life. :eek:
 

asiafrenz

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U use this calculator u will be able to see the amount u getting back monthly until the end from cpf life..

https://www.cpf.gov.sg/eSvc/Web/Schemes/LifeEstimator/LifeEstimator

Based on the CPF LIFE Estimator, my take-away is:

The main difference between Standard and Basic Plan appears to be at the Bequest amount (i.e. what's left for your nominee upon your death), this amount is highest for the basic plan, and is significantly higher for Basic Plan, yet the monthly payout between the two plan is not a huge difference, so if you have reason to believe you are not likely to have a lifespan beyond age 90, it really makes more sense to opt for the Basic Plan. Even if you were to live beyond age 90, it also makes sense to opt for the Basic Plan, unless you really want to squeeze that little more monthly payout between the 2 plan and is not concerned about any bequest since you have no one to leave behind any money to.
 

luvpraline

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I forgot to mention, another important consideration why I will choose Basic CPF Life Plan: I can convert it into a "CI policy" which gives me more payout anytime I want, for treatment, enjoy my last days, etc, upon confirmation of terminal illness or tpd.

This is a very good point. I had only been thinking about preserving the overall household finances when either my hubby or I pass on first. But there's also the added flexibility of tapping on the payout for myself if needed. Thanks for sharing! :)
 

luvpraline

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Based on the CPF LIFE Estimator, my take-away is:

The main difference between Standard and Basic Plan appears to be at the Bequest amount (i.e. what's left for your nominee upon your death), this amount is highest for the basic plan, and is significantly higher for Basic Plan, yet the monthly payout between the two plan is not a huge difference, so if you have reason to believe you are not likely to have a lifespan beyond age 90, it really makes more sense to opt for the Basic Plan. Even if you were to live beyond age 90, it also makes sense to opt for the Basic Plan, unless you really want to squeeze that little more monthly payout between the 2 plan and is not concerned about any bequest since you have no one to leave behind any money to.

I just did a test scenario. I had read about what you described but never used the calculator for myself as it does not allow for my age. But wow, now I see the figures for myself. The difference in monthly payout is less than $150 but if I die at 70, the difference in bequest amount is between $83 to $98k. One of my parents passed on before 70, so that's not an unrealistic scenario to consider.
 

asiafrenz

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talking about deposit, maybe i can add something regarding UOB. Last month i received an sms from UOB that my FD is due soon and I can enjoy better rate if I show them the msg when renewing the FD. But when i made an effort to drop by their branch physically to ask about this, the banking staff does not seem to know what this sms is about and had to go check with someone else in the bank and then came back to tell me the rate is the same as offered by the bank, no better rate whatsoever. In case you also received a similar sms from UOB, dont waste your time and effort to go to the bank physically, just check their rate online and if rate is good for you, just open the FD online.
 

maple96

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yea past few pages is active with CPF talks and not deposits.

for some forumers, CPF is long term FD or endowment type FD, for some CPF is short term FD, at least 2.5% interest, better than Bank FD, so discussing and comparing.
 

a4973

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for some forumers, CPF is long term FD or endowment type FD, for some CPF is short term FD, at least 2.5% interest, better than Bank FD, so discussing and comparing.
You left out those that use CPF as savings account.
 

peppermint7

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talking about deposit, maybe i can add something regarding UOB. Last month i received an sms from UOB that my FD is due soon and I can enjoy better rate if I show them the msg when renewing the FD. But when i made an effort to drop by their branch physically to ask about this, the banking staff does not seem to know what this sms is about and had to go check with someone else in the bank and then came back to tell me the rate is the same as offered by the bank, no better rate whatsoever. In case you also received a similar sms from UOB, dont waste your time and effort to go to the bank physically, just check their rate online and if rate is good for you, just open the FD online.

Lol they tricked u to pay them a visit :D
 
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