Retirement plan

[boredboiboi]

Thanks for this! Let me think through first.

Sure. Anything let me know and will quote accordingly as well or any question. Currently there is premium discount of up to 10% for first year for company M =)

 

[doratch]

My situation is similar to TS.

I have hit my FRS last year.

I have the Manulife RetireReady Plus 2 where there will be a guaranteed payout of 1k/mth (+bonus) from the age of 65 to 85.

I also invested some money in stocks.

I am also refunding cash into my OA to repay the amount used for HDB flat.

 

[andyhtc]

I hope to retire at 55-56 years old if everything goes smoothly with all my loans fully paid up. My passive income might be around $6k/month by then (excluding CPF Life).

However, I may want to take a 1 month break from work around that age to test if I will get really bored. If I do, then I will just continue working full-time or take on a part time job.

I only wish for good health when I retire.

 

[Tregunter]

One of the way to buffer your retirement income is to ensure that you top up to your RA to the prevailing ERS limit.

This translates to an annual topup of $7.5k currently and it will increase to $9k next year.

If you take advantage of the yearly increases, you can build up your retirement income significantly.

 

[qhong61]

If leave $35k for five yrs, monthly payout abt $365 for next ten yrs, is it good? By Ntuc Income.

 

[boredboiboi]

If leave $35k for five yrs, monthly payout abt $365 for next ten yrs, is it good? By Ntuc Income.

Should be got better deal. U want provide more info so i can quote for u?

 

[BBCWatcher]

If leave $35k for five yrs, monthly payout abt $365 for next ten yrs, is it good? By Ntuc Income.

Is that $365/month guaranteed or non-guaranteed? If the latter, what's the guaranteed amount? And what problem(s) are you trying to solve with a 10 year fixed term annuity?

 

[qhong61]

Is that $365/month guaranteed or non-guaranteed? If the latter, what's the guaranteed amount? And what problem(s) are you trying to solve with a 10 year fixed term annuity?

Both guaranteed and non guaranteed. To supplement cpf life.

 

[qhong61]

Should be got better deal. U want provide more info so i can quote for u?

U from which agency?

 

[boredboiboi]

U from which agency?

I can quote multiple company except pru and GE

 

[BBCWatcher]

Both guaranteed and non guaranteed. To supplement cpf life.

What's the guaranteed amount? You shouldn't be looking at non-guaranteed figures since they're most probably too optimistic.

How does a 10 year fixed term annuity supplement CPF LIFE? Do you mean it would serve as a bridge to CPF LIFE, i.e. pay monthly from age 60 to 70 (for example)? If that's correct, have you compared this product to simply depositing funds into CPF OA+SA+MA ("all three account") Voluntary Contribution and/or CPF OA repayment, if those options are available?

 

[Nofear40]

I hope to retire at 55-56 years old if everything goes smoothly with all my loans fully paid up. My passive income might be around $6k/month by then (excluding CPF Life).

However, I may want to take a 1 month break from work around that age to test if I will get really bored. If I do, then I will just continue working full-time or take on a part time job.

I only wish for good health when I retire.

Hi, can you share the sources and how did you achieve $6k passive income per month? Would like to take some learnings. Thanks

 

[andyhtc]

Hi, can you share the sources and how did you achieve $6k passive income per month? Would like to take some learnings. Thanks

Mainly rental income.

 

[justwakeup]

OK, so you want more retirement income, got it. What's wrong with increasing your CPF Retirement Account balances? That would increase your monthly retirement income, and it would do so better (more "bang for the buck" than all of the other options mentioned so far). You're well below the maximum Retirement Account balances allowed.

You can add any amount(s) you like, up to the current Enhanced Retirement Sum (counting principal only; interest can accrue above the ERS). Every time the ERS is raised you can do more. You can even do "cross-spouse" transfers if you want, i.e. your spouse transfers his/her OA dollars into your RA and vice versa. And you have no insurance carrier default risk, only the risk the Government of Singapore defaults -- a very low risk indeed.

Hi, if the purpose is to increase monthly income during retirement, is there any reason not to top up RA, but rather buy retirement / endowment plan?

 

[zoneguard]

Hi, if the purpose is to increase monthly income during retirement, is there any reason not to top up RA, but rather buy retirement / endowment plan?

https://forums.hardwarezone.com.sg/threads/retirement-plan.6491909/post-133335522

 

[Prof. Utonium]

Hi, if the purpose is to increase monthly income during retirement, is there any reason not to top up RA, but rather buy retirement / endowment plan?

As an owner of an annuity plan, if you really seek one then it is because you want to avoid putting into 1 basket. When I got 1, I have close to 3 decades of personal retirement age (or 4 decades till retirement age) so CPF may change their regulation thus I do not wish to put all my faith into 1 basket (did not want to top up cash into CPF).

However, if you are looking into (the current value of) which is the most bang for buck then it is no brainer CPFLIFE is the best value in terms of annuity/retirement plan.

 

[snowcrabramyeon]

As an owner of an annuity plan, if you really seek one then it is because you want to avoid putting into 1 basket. When I got 1, I have close to 3 decades of personal retirement age (or 4 decades till retirement age) so CPF may change their regulation thus I do not wish to put all my faith into 1 basket (did not want to top up cash into CPF).

However, if you are looking into (the current value of) which is the most bang for buck then it is no brainer CPFLIFE is the best value in terms of annuity/retirement plan.

Other than CPFLife, which other annuity plan gives you the most bang for buck? Which one did you get?

 

[boredboiboi]

Other than CPFLife, which other annuity plan gives you the most bang for buck? Which one did you get?

With the recent changes in july, all the returns is no longer as good as before already. Maybe to quote accordingly to see the numbers to decide yourself.

 

[Prof. Utonium]

Other than CPFLife, which other annuity plan gives you the most bang for buck? Which one did you get?

I would say private annuity plans (SG) so far is not as comparable to CPFLIFE in terms of returns (risk is subjective as private may close or change their t&c, and gov may change their policies but overall gov plan is still offers the best guaranteed returns).

I got mine from Manulife sometime ago. At that time it was the best bang for bucks in terms of returns (guaranteed) but of course the guaranteed returns for current plans had dropped too from before due to the current economic climate.

When you are shopping for annuity, don't look at their non guaranteed (NG) portion. Like many other insurances plans, they tend to overestimate but under pay. Look at their guaranteed portion and the other perks like disability or unemployment if have. Each company may offer a slightly different perk that may appeal to your needs.

It is safer to look at their guaranteed portion so you can plan your retirement more conservatively to avoid huge gaps.

 

[BBCWatcher]

As an owner of an annuity plan, if you really seek one then it is because you want to avoid putting into 1 basket.

By this logic -- and there's a certain amount of logic to it -- your next "basket" wouldn't actually be a private Singapore dollar life annuity. It'd be an *offshore* life annuity in a high quality currency from a high quality payer. Yes, the government could change CPF. But exactly the same government has complete control over the currency, taxability, and regulation of every other Singapore dollar life annuity. And the national existential risks are the same, plus the private issuer is a less reliable payer than a AAA rated government. Anyway, it's an "interesting argument," but it points you in an "interesting direction."

To be clear, taxability is largely unavoidable. If the Government of Singapore wants to tax its citizens no matter where they live, it can. Arguably it already does since CareShield Life is now compulsory with no exception for Singaporeans living overseas.