20 or 30 years SGS Bonds already guaranteeing 2-3% yield. Use that as a benchmark.
No, it really doesn't work that way. A future long-term SGS could yield 0.2%, cf. Japanese government bonds. High quality life annuities purchased today are immune to such possibilities.
You can spend heck of a lot of money to hedge against such risks, imperfectly...or you can buy a baseline escalating life annuity and relax. These are very different propositions.
I said up to 6%. It is still the correct term.
OK, but it's just not that likely for most people reading this. For a Retirement Account top-up's incremental dollars to qualify for 6% interest, you would have to be age 55 or older and have less than $30,000 in total CPF funds (of which up to $20,000 could be OA dollars). Is that very many CPF members reading these words when they reach that age? For 5%, less than $60,000 total -- still not that likely for CPF members reading these words when they reach that age.
I happen to think CPF LIFE is a great program, but all the talk about bonus interest on RA top-ups is rather over-the-top. You really would rather not be in a position to qualify for bonus interest at that point for those dollars, because that would mean your balances are quite low. Try not to do that (such low balances).
