Will double FRS be enough?

[havetheveryfun]

Well, how about looking at the data? Here’s the basic fact (per MOM statistics): The labor force participation rate among Singaporeans age 65+ was 13.8% in 2006. It was 28.5% in 2020 (most recent year I can find), and that was UP from 2019 (contrary to what you might expect in the first full or partial pandemic year).

It seems reasonable to assume that this big jump in elder labor force participation over such a short period (14 years) is not solely voluntary but rather of economic necessity to some degree. But what do you think?

this data is not complete
u also need the % of people who have reached BRS/FRS over the years

its more reasonable to assume that most people are unable to reach FRS by the age of 55 or 65

not being able to reach BRS/FRS and whether BRS/FRS is enough for a living after age 65 are 2 different issues.

 

[twosix]

RA account is getting 4% interests, this will account for the inflation rate, no?

 

[magicming]

RA account is getting 4% interests, this will account for the inflation rate, no?

Yes, while the money is still in our RA. But at 65, it is transferred to CPF LIFE as a premium. I am not sure if u can defer this till 70. Payout can. But enlisting in CPF LIFE? Anyway, once it is in CPF Life, thé 4% goes to the general pool, I don’t believe it goes to the specific Individual. Please do correct me, as I only vaguely remember this mechanism.

 

[twosix]

Yes, while the money is still in our RA. But at 65, it is transferred to CPF LIFE as a premium. I am not sure if u can defer this till 70. Payout can. But enlisting in CPF LIFE? Anyway, once it is in CPF Life, thé 4% goes to the general pool, I don’t believe it goes to the specific Individual. Please do correct me, as I only vaguely remember this mechanism.

yes, once in cpf life, it does not earn anymore interests. thus it is in one's interests to quickly use it. the escalating plan is nonsense. why would one want to delay receiving your own money with no extra interests thrown in? do u think u can outlive the system?

 

[dork32]

Yes, while the money is still in our RA. But at 65, it is transferred to CPF LIFE as a premium. I am not sure if u can defer this till 70. Payout can. But enlisting in CPF LIFE? Anyway, once it is in CPF Life, thé 4% goes to the general pool, I don’t believe it goes to the specific Individual. Please do correct me, as I only vaguely remember this mechanism.

yes you are wrong. 4% goes to pool for standard and escalating. most of 4% goes to your own ra for basic

 

[dork32]

yes, once in cpf life, it does not earn anymore interests. thus it is in one's interests to quickly use it. the escalating plan is nonsense. why would one want to delay receiving your own money with no extra interests thrown in? do u think u can outlive the system?

stop spreading fake news. you delay your withdrawal, your ra continues to earn interest at 4%. it is when you choose standard and the payout starts that the interest stops.
but you choose standard, then you deserve to have you interest going to the pool. i choose basic. interest will come back to my ra, most of it at least.

 

[twosix]

stop spreading fake news. you delay your withdrawal, your ra continues to earn interest at 4%. it is when you choose standard and the payout starts that the interest stops.
but you choose standard, then you deserve to have you interest going to the pool. i choose basic. interest will come back to my ra, most of it at least.

funds in RA will earn interests. once 65, RA funds will all go into CPF life, be it standard or escalating. funds in CPF life will earn interests too?

 

[starlight318]

funds in RA will earn interests. once 65, RA funds will all go into CPF life, be it standard or escalating. funds in CPF life will earn interests too?

Funds in the cpf life pool earn interests too but the interest stays in the pool and will not be paid to your beneficiary when you die.

 

[henrylbh]

funds in RA will earn interests. once 65, RA funds will all go into CPF life, be it standard or escalating. funds in CPF life will earn interests too?

RA will continue to earn interest and remain in RA until the time you choose to start CPFL payout, anytime between 65 and 70. When you choose to start CPFL you have to decide one of the 3 plans.

All 3 plans pays for life. For Standard and Escalating plans, all RA is transferred to LIF and there it continues to earn interest. But you will not get the interest until the principal amount transferred is exhausted by monthly payouts by about 80 to 82. For Basic plan, up to 20% of RA may be transferred to LIF. The balance RA together with interest will be exhausted just before 90.

 

[magicming]

yes you are wrong. 4% goes to pool for standard and escalating. most of 4% goes to your own ra for basic

Thanks for the correction. In that case, BASIC appears to be a better choice as I would like to keep most of the 4% interest for myself.

 

[magicming]

RA will continue to earn interest and remain in RA until the time you choose to start CPFL payout, anytime between 65 and 70. When you choose to start CPFL you have to decide one of the 3 plans.

All 3 plans pays for life. For Standard and Escalating plans, all RA is transferred to LIF and there it continues to earn interest. But you will not get the interest until the principal amount transferred is exhausted by monthly payouts by about 80 to 82. For Basic plan, up to 20% of RA may be transferred to LIF. The balance RA together with interest will be exhausted just before 90.

Yes. That’s right. Thanks for the comprehensive info. Your brain is really good.
I remember watching a YouTube video where they showed that with Basic, there was still a possible Bequest of about $95k at 85, whereas there was zero for both Standard/Escalating. Based on FRS of $186k.

I guess if death occurs between say 70- 87, then Basic is good. But if it is later, then probably escalating would be better?

 

[SUVperb]

Yes. That’s right. Thanks for the comprehensive info. Your brain is really good.
I remember watching a YouTube video where they showed that with Basic, there was still a possible Bequest of about $95k at 85, whereas there was zero for both Standard/Escalating. Based on FRS of $186k.
I guess if death occurs between say 70- 87, then Basic is good. But if it is later, then probably escalating would be better?

if choose basic plan base on frs $181k,how much will be getting per month?thks


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[dork32]

funds in RA will earn interests. once 65, RA funds will all go into CPF life, be it standard or escalating. funds in CPF life will earn interests too?

you were talking about delaying and no interest, not this.

if you delay your payout till 70, you money stays in the RA and continues to earn 4% till 70.

there is a group that say that interest going to the pool is also your money. i disagree with them. yes you are right, that it is my opinion that standard and escalating is not earning interest.

but basic continues to earn interest, you want interest for your self. you know standard and escalating not giving interest. and you gong gong choose it, then whose fault?

 

[dork32]

if choose basic plan base on frs $181k,how much will be getting per month?thks


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you press the cpf life calculator

 

[dork32]

I guess if death occurs between say 70- 87, then Basic is good. But if it is later, then probably escalating would be better?

even if you lived til 95 basic is still not bad. it is just not as good as the other 2.

if you live till 80, then standard and basic is really bad.

 

[henrylbh]

Thanks for the correction. In that case, BASIC appears to be a better choice as I would like to keep most of the 4% interest for myself.

Basic plan good enough to up about 95 as you will get back the premium paid and the attributable interest in the pool. After 95 the other plans would be better off. But how many believe they can live up to 95 Even can survive, most lives may have impaired or dementia stepped in or too weak for any activities, including sanity.

 

[henrylbh]

if choose basic plan base on frs $181k,how much will be getting per month?thks


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Depends on how much you have accumulated in RA a month before you join CPFL (between 65 and 70) when part of RA will deducted as life premium. The balance in RA will be paid up to age 90. They have not confirmed the percentage or amount taken out of RA as life premium though the text says about 10% to 20% will be taken as life premium. Previously, the website shows estimated monthly payout and bequest for 181k for all 3 plans. Now no info liao . Even if I give you the info on 181k that I captured in my computer, it may be changed by now.

 

[henrylbh]

this data is not complete
u also need the % of people who have reached BRS/FRS over the years

its more reasonable to assume that most people are unable to reach FRS by the age of 55 or 65

not being able to reach BRS/FRS and whether BRS/FRS is enough for a living after age 65 are 2 different issues.

Most working through their working lives, should be able to reach FRS by 55. But if they cannot reached 144k (previously 72k excluding interest credited) in overall CPF by age 55, they are lucky that the gov is giving them quarterly SSS as much as $900 from age 65. Bloody hawkers, taxi drivers or sole proprietors like insurance and housing agents and even accountants and doctors will be the beneficiaries as most do not contribute working CPF except for medisave. And some hawkers and insurance or housing agents are booming like my friend who got no time to take dinner till passed 11pm,

 

[henrylbh]

Inflation after retirement is a real risk.
People on average have around 20 years after CPF LIFE starts. Everything will be doubled by the end of it.

Plus, the expense gets higher and higher as one age.

Inflation after retirement is indeed real. Even now we are experiencing inflation. But with retirement, there will less expenses, safe for medical expenses.

What is inflation?

I just bought Colgate Triple Action 200g. One shop selling $2.80 and another one opposite selling $1.90 and a shop in another place selling $1.50.

Downstairs my flat, I drink kopi-o $1.40 (air-con). If I go to a normal coffee shop, most charge $1.20 and if I want cheaper, I cycled about 1.5km away I can get kopi-o at 50c (air-con) or 60c if I go to a certain food centre in Kallang.

Even for cigarettes, normal shops and normal price $14.50 but certain shop selling $10 or even $9.90

For those tight in money after retirement, go JB for atas living For price of COE, you can get better than semi luxury car with petrol at more than half price. Road tax damned unbelievable cheap. Houses even cheaper still and bigger.

 

[abcde83]

Inflation after retirement is indeed real. Even now we are experiencing inflation. But with retirement, there will less expenses, safe for medical expenses.

What is inflation?

I just bought Colgate Triple Action 200g. One shop selling $2.80 and another one opposite selling $1.90 and a shop in another place selling $1.50.

Downstairs my flat, I drink kopi-o $1.40 (air-con). If I go to a normal coffee shop, most charge $1.20 and if I want cheaper, I cycled about 1.5km away I can get kopi-o at 50c (air-con) or 60c if I go to a certain food centre in Kallang.

Even for cigarettes, normal shops and normal price $14.50 but certain shop selling $10 or even $9.90

For those tight in money after retirement, go JB for atas living For price of COE, you can get better than semi luxury car with petrol at more than half price. Road tax damned unbelievable cheap. Houses even cheaper still and bigger.

life is also cheaper there... Lol