Yet another new cpf life scheme

[chopra]

http://www.straitstimes.com/singapore/cpf-review-7-things-to-know-about-the-proposed-cpf-life-plan

Sent from hoping for a slower paced singapore using GAGT

 

[Perisher]

Instead of simplifying, it becomes more complicated...
Note to the scholars setting the policies, look at how Apple simplifies things to do more.

 

[chopra]

http://www.straitstimes.com/singapore/cpf-review-7-things-to-know-about-the-proposed-cpf-life-plan

Sent from hoping for a slower paced singapore using GAGT

 

[kehyi4]

hmm... two major changes announced.

First, CPF Life Escalating Plan: The straitstimes article is not so swee, the CNA one is better: it compares Standard to Escalating and notes - "Starting from a full calendar year at age 65, the cumulative payout for both individuals roughly evens out at age 90"

That means the cumulative "breakeven" point is 90yo. Anything b4 that, Standard (flat rate) is better. After 90, Escalating will huat (at 2% per yr ). The question now is: How long do you think you will live?

Second, Lifetime Retirement Investment Scheme (LRIS): this one is damn interesting. Passive management, life-cycle investment, fees at 0.5% or lower. Sounds pretty good, and certainly much better than whatever rubbish funds are being marketed for CPFIS now

But details would only come out later, might even take a few years. So, which lucky(?) fund manager would be appointed to run LRIS, the mechanics of the life-cycle rebalancing etc, are all unknown at the moment. We'll just have to wait and see.

 

[dexboi]

When they keep introducing more life options by getting people to delay their payouts, they are essentially banking on our deaths, just so they can "earn" from all the life premiums collected to fund the payouts.

If you don't live long enough, too bad. They have all the mortality statistics that we can't see.

Very very sneeky...

 

[Shion]

I just want to withdraw everything...

 

[winguy]

Should just change Standard and Basic to Standard Escalating and Basic Escalating respectively.

 

[kehyi4]

Should just change Standard and Basic to Standard Escalating and Basic Escalating respectively.

i kinda agree... they should have designed Standard and Basic with the Escalating feature built-in to begin with

Now, after heavily promoting the "$1,200 per month for life!!!", it'll be hard to convince people to take 20+% less initially, in order to gain the Escalating feature...

 

[chopra]

How (the h3ll) is the minimum sum calculated? Isnt it supposed to already account for inflation for an assumed life expectancy?

Somehow i feel the different set of ppl working on min sum and cpf life dont communicate.

Give us so many options. How to choose when THE cpf life calculator is so VAGUE and has a RANGE.

Sent from hoping for a slower paced singapore using GAGT

 

[hogrider88]

As always, policy people need to think of something to hit KPI so juz come out w something

 

[FP_IFA]

Note that the bequest level of the new plan is supposed to be high (Straits Times changed it. The initial pic shown it as low). If that is the case then CNA should be comparing the new plan against the Basic plan and not the Standard plan.

 

[sandwicher]

How (the h3ll) is the minimum sum calculated? Isnt it supposed to already account for inflation for an assumed life expectancy?

Somehow i feel the different set of ppl working on min sum and cpf life dont communicate.

Give us so many options. How to choose when THE cpf life calculator is so VAGUE and has a RANGE.

Sent from hoping for a slower paced singapore using GAGT

Your minimum sum is fixed once you turn 55 years old. The inflation adjustment is only if you haven't reached 55/fix your min sum.

So it's different in the first place. Relax haha

Imagine if they keep adjusting the min sum even after 55, more Singaporeans will kpkb about goal post shifting instead of saying 'the cpf departments don't talk to each other'

 

[SBC]

If the plan is really good, 1 plan is good enough.

 

[henrylbh]

http://www.straitstimes.com/singapore/cpf-review-7-things-to-know-about-the-proposed-cpf-life-plan

Sent from hoping for a slower paced singapore using GAGT

Thread should be yet another scheming cpf life. But my father said variety is the spice of life.

 

[Squaredot]

What a joke!

Payout to be 20% lower at start in order to get "escalated" 2% every year.
To avoid lower payout, top up CPF life premium or start payout later (up to 70years old)

Scheme is from bad to worse!

 

[Slowdown]

After a few more years / rounds of fine tuning they will come out with a new plan which will allow people to fully withdraw their CPF at age 55. The new plan is introduced after feedback from experts who says that people are more savy and would like maximum control over their retirement.

 

[anfielder]

People wanted a plan that gives increasing payouts. Now they know the trade-off that it entails, which is that the payout will have to start quite a bit smaller. Simple maths, really.

 

[dork32]

never say anything about bequest.

is the bequest system like the standard or basic?

garmen always leave a lot of questions unanswered.

 

[tiny]

If the plan is really good, 1 plan is good enough.

My private annuity pays me from 60 years old and for life as per what was agreed when the contract was signed. No more changes and tweaks.

 

[FP_IFA]

never say anything about bequest.

is the bequest system like the standard or basic?

garmen always leave a lot of questions unanswered.

I actually wrote in to CPF asking if there is a minimum (guaranteed) payout for CPF Life. Didn't receive any reply from them.