Retirement Policy

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Ben1975

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Thanks for the suggestion. I would think a combination of annuity plans and CPF is good. Currently, what are the better retirement insurance policies around? Does anyone know?


Jwlng said:
Without knowing what is your desired retirement income and when you intend to retire, it is very difficult to recommend a suitable plan for you. Another option would be to transfer the max amount each year into SRS, save an average of $1000-$1500 on your annual taxes, buy an annuity plans using your SRS money, which would give you a payout of roughly $1000 a year for 20 years from age 65. Repeat annually for the next 10 years or so. Combine this with CPF Life, and you will have approximately $2-3k a month to spend till you hit 85. For some, this is good enough. For you, you will either have to do your own planning or engage a financial planner who can work out the calculations for you.
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FP_IFA

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mrclubbie said:
Anyone heard of Etiqa efuture pay presto ?
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I went to their website and from the graphical illustration it looks very much like Aviva MyRetirement. On paper, it is slightly better than MyRetirement on payout and maturity. The only thing is do you trust Etiqa? And you don't really want a retirement plan that only pay out 10 years, unless one already got some medical conditions.
 
Mecisteus

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i have not done my research because i am not so old yet. but my guts tell me that cpf life is probably giving the best retirement policy. reason is economies of scale.
 
highsulphur

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MikeDirnt78 said:
i have not done my research because i am not so old yet. but my guts tell me that cpf life is probably giving the best retirement policy. reason is economies of scale.
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I tend to agree with. Another reason would be that cpf would probably last longer than most insurance companies.
 
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MindMatrix

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Lewis.T said:
Yes, but CPF Life payouts are not guaranteed and may have shifting goalposts. That's a risk.
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Agree with you about the shifting goalposts, at the moment the payout is supposed to start at 65, hope they don't change it.

CPF Life payout is easier to understand, when compared to private annuities because it doesn't have the guaranteed/non-guaranteed components. Supposedly, the payout is subject to change every year though the cpf website says that any change would be small as they are trying to keep the payout stable, and not fluctuate too much from year to year.

Personally, I still hope to find a suitable private annuity, to complement CPF Life.
 
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culture_counter

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Hi All,

Don't you think that getting the CPF Life monthly payout from age 65, is a bit way too old?
They should give an option for those who want to draw down earlier, at perhaps, age 60.....
 
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Lewis.T

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culture_counter said:
Hi All,

Don't you think that getting the CPF Life monthly payout from age 65, is a bit way too old?
They should give an option for those who want to draw down earlier, at perhaps, age 60.....
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Well.. doesn't seem like we have a say in this.
 
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djchris

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culture_counter said:
Hi All,

Don't you think that getting the CPF Life monthly payout from age 65, is a bit way too old?
They should give an option for those who want to draw down earlier, at perhaps, age 60.....
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I think that's the government's retirement plan for Singaporeans. If we want to retire earlier, we need to beef up our own retirement portfolio.
 
aoptionwriter

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If we have to blame someone shifting the goal post, we have to 'blame' Singaporean has longer life expectancy.

http://www.singstat.gov.sg/statistics/visualising-data/charts/life-expectancy-at-birth

Allowing early draw down means to cut down the payout amount, else, the system will become unsustainable like the West welfare country.

As long as someone honestly look after the $$, I would rather live with the system as it will never be perfect to all.

culture_counter said:
Hi All,

Don't you think that getting the CPF Life monthly payout from age 65, is a bit way too old?
They should give an option for those who want to draw down earlier, at perhaps, age 60.....
Click to expand...
 
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FP_IFA

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MindMatrix said:
Agree with you about the shifting goalposts, at the moment the payout is supposed to start at 65, hope they don't change it.

CPF Life payout is easier to understand, when compared to private annuities because it doesn't have the guaranteed/non-guaranteed components. Supposedly, the payout is subject to change every year though the cpf website says that any change would be small as they are trying to keep the payout stable, and not fluctuate too much from year to year.

Personally, I still hope to find a suitable private annuity, to complement CPF Life.
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CPF Life payout is based on a 3.75% and 4.25% range. It is by no mean guaranteed. In fact there is no guaranteed minimum payout figure at all for CPF Life. That is not a good thing in my opinion.

Shifting target is a problem though. It is quite likely to shift as our life span is almost certain to go higher as time goes by.

Now I don't know what would happen if CPF Life later do shift the payout. There are retirement plans now that always pay whole life so if CPF Life does shift later, it could put these plans in a better position even though at present it lose to CPF Life. But there are a lot of IFs here.
 
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Ben1975

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CPF LIfe will pay you monthly for as long as you live right?


FP_IFA said:
CPF Life payout is based on a 3.75% and 4.25% range. It is by no mean guaranteed. In fact there is no guaranteed minimum payout figure at all for CPF Life. That is not a good thing in my opinion.

Shifting target is a problem though. It is quite likely to shift as our life span is almost certain to go higher as time goes by.

Now I don't know what would happen if CPF Life later do shift the payout. There are retirement plans now that always pay whole life so if CPF Life does shift later, it could put these plans in a better position even though at present it lose to CPF Life. But there are a lot of IFs here.
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