It's still a boon for his beneficiary as long as he uplorry anytime before 90.
The boon is much more valuable if his beneficiary doesn’t have to wait. What, nobody has figured this part out yet? Earlier money, timely money, and in the hands of someone with a longer investment time horizon — none of that is understood and appreciated? These are called “lifetime gifts.”
Oh, right, we most oddly think it’s best if our loved ones have to wait years or decades for a bequest that will never come from CPF LIFE if we simply live long enough.
Yes, there are at least two:
1. Replace CPF LIFE with an acceptable alternative private life annuity;
2. Leave Singapore (and Western Malaysia) and terminate status.
Not my plan, but life is full of choices.
I did mentioned in another post that I will be more than happy to take this amount, dump with a bank put in fixed deposit (based on 30 years at age 65)drawout only the yearly interest until I passed on.
The closest match to that formula is to start CPF LIFE payouts at age 70, never provide CPF with your bank account details, and probably choose the Escalating Plan if you’re expecting to die at age 80. (Check my math on that if you wish. It could be the Basic Plan.) CPF will then pay your monthly CPF LIFE amounts into your Ordinary Account where they’ll earn 2.5%. When you pass on your CPF nominated heir receives every dollar including accrued interest.
Of course, you have nothing to live on from CPF LIFE, but you did say you wanted to maximize your bequest using a program that isn’t designed well for bequest delivery.
I know you going to tell me no bank going to give me the rate CPF give. So I am choosing something that suit me better given no choice by CPF
Right, and 2.5% in an Ordinary Account beats the banks, so just push CPF LIFE payouts into that....
....Oh, you say you need to live on this income? Well then, that’s a different story, isn’t it?
I might delay to 70 payout assuming at 65, I have not blowout all my saving.
And there’s the rub. So how about flipping this around, use CPF LIFE to do what it’s designed to do best (provide you with a basic standard of living for the rest of your life), in the maximally effective configuration in that mission, and give away most of your other dollars to your heirs while you’re still alive — and while they have a longer time horizon to put those dollars to more productive, higher yielding use?
