RSS old scheme vs CPF life basic ? CPF Life Basic vs Std/Esc

[assiak71]

If same balance and eligible to start payout same time, off course RSS has much higher payout cause the balance is paid over a period of about 20 years.

Under CPF Life, the payout is lower and for life and you need to live to about 95 or longer to recover your balance.

Those born from 1958, RSS is not an available option.

Looks like rss it is for parent

 

[K_E_N_L_A_W]

Just want to share my understanding of the rss and cpf life.

To me, CPF is a supplement to retirement fund.

RSS allow us to totally cash out from CPF minus the medisave which is tied up based on ground that when we need medical assistance, we can use the fund. Funds in RSS continue to attract interest while it is getting drawn down.

CPF Life has 3 plans which will payout for as long as you live. 2 of plans which does not attract interest (1st and 3rd plan, if I remember correctly) while money is tied up in the account as it goes to a pool. We continue to draw down our money till it's fully withdrawn and then it starts to draw from the pool till we pass on. Similarly to RSS, medisave is lock up and use for medical needs.

My top choice is to fully draw out CPF at 55, follow by RSS and CPF Life.

 

[Battery Operator]

RSS

I am with the last cohort (RSS scheme). Recently, I wrote to CPF to enquire about my monthly payout at 65 (since that was the instruction given on the CPF website as the RSS calculator is no longer available).

For clarity, I topped up my RA to ERS when the option was introduced in 2016. This is their reply to me from CPF (by mail):

"You are currently under the RSS which provides you with a monthly stream of income from your payout eligibility age until your RA balances are depleted. Based on your current RA balances, if you commence your monthly payouts in December 2022, (Age 65) you can receive $1,840 monthly which will last you for 30 years"

Sharing the above, which is hopefully helpful for people on RSS and yet to commence their payout.

 

[BBCWatcher]

Battery Operator, you too are allowed to defer your payout starting date to as late as age 70 if you wish. In fact, that's the default if you take no action. You also have the option to choose a CPF LIFE payout plan if you wish, and my understanding is you can make that particular decision as late as age 79.9 (a month or two before your 80th birthday).

 

[dork32]

Battery Operator, drawing at 80 is a wonderful idea. add 30 years to the 80 and you can continue to draw till you are 110.

 

[Battery Operator]

Battery Operator, drawing at 80 is a wonderful idea. add 30 years to the 80 and you can continue to draw till you are 110.

For me, the moment i hit 65, not a second more

 

[kelhot2001]

For me, the moment i hit 65, not a second more

Just curious, so you have to be the luckier one to enjoy 4+1+1% on your minimum sum saving even though you are not on CPF Life

If you will to choose between 3 the withdrawal, what will be probably your call and why(if you are ok to say)?

 

[Battery Operator]

Just curious, so you have to be the luckier one to enjoy 4+1+1% on your minimum sum saving even though you are not on CPF Life

If you will to choose between 3 the withdrawal, what will be probably your call and why(if you are ok to say)?

If i have to choose between the 3, I will opt for CPF Life BASIC which in my opinion, closely mirrors the old RSS. Everyone of us, have our personal reasons and or situation which are unique in coming to a decision as to whether to defer to 70, to chose Escalating or even Std Plans. No one size fits all, so again - it is up to the individual.

 

[kelhot2001]

If i have to choose between the 3, I will opt for CPF Life BASIC which in my opinion, closely mirrors the old RSS. Everyone of us, have our personal reasons and or situation which are unique in coming to a decision as to whether to defer to 70, to chose Escalating or even Std Plans. No one size fits all, so again - it is up to the individual.

If you a direct comparison, will you be better off in CPF life using CPFLife calcuator https://www.cpf.gov.sg/members/tools/calculators choosing a basic withdrawal ( I am just curious) as comparison

 

[assiak71]

I am with the last cohort (RSS scheme). Recently, I wrote to CPF to enquire about my monthly payout at 65 (since that was the instruction given on the CPF website as the RSS calculator is no longer available).

For clarity, I topped up my RA to ERS when the option was introduced in 2016. This is their reply to me from CPF (by mail):

"You are currently under the RSS which provides you with a monthly stream of income from your payout eligibility age until your RA balances are depleted. Based on your current RA balances, if you commence your monthly payouts in December 2022, (Age 65) you can receive $1,840 monthly which will last you for 30 years"

Sharing the above, which is hopefully helpful for people on RSS and yet to commence their payout.

Got cpf life basic figures for comparison?

 

[K_E_N_L_A_W]

For me, the moment i hit 65, not a second more

If you have so much, might as well get it started immediately.

One of my family member had only 16k at 55, so chose to delay till 72, the money has compounded to 40+k. The payout period for the rss scheme has more than doubled for this decision.

 

[Battery Operator]

If you a direct comparison, will you be better off in CPF life using CPFLife calcuator https://www.cpf.gov.sg/members/tools/calculators choosing a basic withdrawal ( I am just curious) as comparison

From the calculator, using my current RA balance, monthly payout at 65:

Std : $1,879 - $2,017
Basic: $1,708 - $1,838
Escal: $1,477 - $1,600

 

[kelhot2001]

From the calculator, using my current RA balance, monthly payout at 65:

Std : $1,879 - $2,017
Basic: $1,708 - $1,838
Escal: $1,477 - $1,600

Quite as expected based on your comparison

If based on your RSS till 95 years old
If comparing RSS$1840.00 to CPFlife Basic at $1838.00 both are similiar except one is till 95, the other till death. But on the other hand, basic amt will drop alot from 90 - 95. The other not compare are the bequest left behind which i suspect rss will have a better bequest

If comparing RSS$1840 against CPFLife standard the amount is slight lower but the bequest is definitely bad against RSS$1840.00 , at age 81, bequest will lose out at least $150k

Conclusion : Why change RSS?

 

[BBCWatcher]

But on the other hand, basic amt will drop alot from 90 - 95.

What do you mean?

 

[The_Davis]

For me, the moment i hit 65, not a second more

cool a slap on bbcwatcher

 

[kelhot2001]

What do you mean?

ou will receive monthly payouts from the savings in your RA*from your payout start age*until one month before you reach 90 years old. Once you reach 90 years old, you will continue to receive monthly payouts from the Lifelong Income Fund for as long as you live.

Payouts under your CPF LIFE Basic Plan will be reduced when the combined balances in your CPF accounts, including the amount committed to CPF LIFE, falls below $60,000.This is due to the reduction in any extra interest earned and paid to you.

 

[BBCWatcher]

Payouts under your CPF LIFE Basic Plan will be reduced when the combined balances in your CPF accounts, including the amount committed to CPF LIFE, falls below $60,000.This is due to the reduction in any extra interest earned and paid to you.

Where did you find that information?

 

[kelhot2001]

Where did you find that information?

CPF website
https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/cpf-life#

 

[BBCWatcher]

CPF website
https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/cpf-life#

Good catch, and...yuck.

The CPF LIFE Estimator will show a slight nominal payout reduction in the CPF LIFE Basic Plan starting at age 92 (assuming FRS and age 65 payout start). According to the Estimator the reduction starts from age 94 if you start payouts at age 70.

 

[kelhot2001]

Good catch, and...yuck.

The CPF LIFE Estimator will show a slight nominal payout reduction in the CPF LIFE Basic Plan starting at age 92 (assuming FRS and age 65 payout start). According to the Estimator the reduction starts from age 94 if you start payouts at age 70.

Which i find a bit hard to understand if I unDerstand correctly for basic withdrawal plan

1) All annual interest earn by basic premium(20%) will be deposit into our RA account

2)All basic premium will be return to RA upon death as bequest (i read it in another thread, not sure how true)

3) So by 90, if you start drawing from the LIF, where and who fund am I drawing from?

Eg, if I live till 93 years old, the whole cohort of mine at basic plan already dead, all their premium already withdrawn, so where will I be drawing out from? And how much will it be?
Unless LIF is pool togthwr with everyone from std/esc plan