Retirement Policy

henrylbh

henrylbh

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Can anyone name me a life annuity plan that i better than CPF Life?
 
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dak hand41

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mrclubbie said:
My concern is how many people do have sufficient CPF money to undertake CPF Life or the Retirement Account...:(
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If you are: a) around the age of 45 and above, b) do not have sufficient money to undertake CPF Life at its full retirement sum; a possible way is to channel the money (which you would have otherwise spent on this products) towards topping up your CPF SA.

This is because CPF SA is likely to earn 4% per annum which is much better than endowments that yield only in the region of 3% (according to investmentmoat's blog). Secondly, you get tax savings for doing a voluntary top up to CPF SA.

This is one of the best ways to save for retirement and is of a much lower risk than many financial planner's recommended products for retirement. The harsh truth is that many financial institution's products cant beat a mixture of CPF/STI ETF products.
 
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Lewis.T

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dak hand41 said:
If you are: a) around the age of 45 and above, b) do not have sufficient money to undertake CPF Life at its full retirement sum; a possible way is to channel the money (which you would have otherwise spent on this products) towards topping up your CPF SA.

This is because CPF SA is likely to earn 4% per annum which is much better than endowments which yields only in the region of 3% (according to investmentmoat's blog). Secondly, you get tax savings for doing a voluntary top up t CPF SA.

This is one of the best ways to save for retirement and is of a much lower risk than many financial planner's recommended products for retirement. The harsh truth is that many financial institution's products cant beat a mixture of CPF/ETF products.
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Yes, but CPF Life payouts are not guaranteed and may have shifting goalposts. That's a risk.
 
Perisher

Perisher

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Or if one doesn't mind, put it in bonds with lower returns like SGS SSB which currently pays 2.78% guaranteed by gov, other retail bonds are in the range of 3-5%+ with company folding risk.
 
Shion

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af7680 said:
Start at 40 yrs and retire at 65... Will it be not too late ?
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As in, BTIR ?

But, comparing it with someone who started at 25 or 30, you might have to commit more in your investments to get the same amount of returns by 65...
 
af7680

af7680

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dak hand41 said:
If you are: a) around the age of 45 and above, b) do not have sufficient money to undertake CPF Life at its full retirement sum; a possible way is to channel the money (which you would have otherwise spent on this products) towards topping up your CPF SA.

This is because CPF SA is likely to earn 4% per annum which is much better than endowments that yield only in the region of 3% (according to investmentmoat's blog). Secondly, you get tax savings for doing a voluntary top up to CPF SA.

This is one of the best ways to save for retirement and is of a much lower risk than many financial planner's recommended products for retirement. The harsh truth is that many financial institution's products cant beat a mixture of CPF/STI ETF products.
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Thank you for sharing this .
If we top up SA account , are we able to withdraw until empty the account ? Or will there be still some restriction to draw ?
 
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Jwlng

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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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