Personal Finance
CPF LIFE
By Financial Planning Central  •  February 16, 2009

CPFActing Manpower Minister Mr Gan Kim Yong announced in parliament yesterday on the changes to the national annuity scheme. The number of choices is reduced from 12 to 4 - called LIFE Basic, LIFE Balance, LIFE Plus and LIFE Income. The following table illustrates the different amount of payout for a 55 year old male who have $67,000 in the Retirement Account in 2013 and receiving the first payout at age 65 (source: The Straits Times). The range of payout is for the assumed interest rate of 3.75% and 4.25%. The Straits Times report did not list the assumed interest rate but the CPF website listed them as quoted. I assume that both are assuming the same interesting rate.

Some things to take note of:

  • The payout may not stay the same throughout the payout period as it depends on the floating interest rate and also the mortality rate. This means that there may be a situation of getting a higher payout for some years followed by lower payouts the next.
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By Financial Planning Central
Tiang Chuan is a Independent Financial Adviser (IFA) with PromiseLand Independent Pte Ltd, an Independent Financial Advisory Firm. One of the reasons that propel him to join the Financial Advisory industry is the realisation of the importance of proper Financial Planning due to the experiences in his growing-up years. Read about his story to know more about what he went through
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1 Comments

One response to “CPF LIFE”

  1. James says:

    This one is very educational. I am 30years old and i hope to live with the same lifestyle when I reach 65 so I am investing to my retirement fund already.

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