wutawa
Supremacy Member
- Joined
- Jan 25, 2003
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Now market interest rate is so poor that a couple of us starts to explore using CPF as short term FD
Talking abt payouts after 40 years cannot be short term fd bahNo need to waste time calculating if u know the major difference between Basic and Standard/Escalating = 4% interest plus 1%+1% credited to RA for Basic that gives the bulk of the bequest should u die earlier than expected.
Plus read these 2 articles:
I like these extracted from the article:
"There are three different CPF LIFE plans for you to choose from which will affect how much you receive in monthly payouts.
Standard Plan (default) – The Standard Plan offers higher level monthly payouts and is targeted at those who think they can live longer than their mid-eighties.
Escalating Plan – The Escalating Plan offers lower monthly payouts at the start with a 2% increment each year. This plan is a good idea only if you think you will live a very long life well into your 90s.
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.
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