Calculations from the CPF Life Payout estimator show that a male Singaporean who turns 55 from next month and has the CPF Minimum Sum of $155,000 will get a monthly payout ranging between $1,200 and $1,350 if he opts for the Standard plan. For a woman, the monthly payout will roughly vary from $1,100 to $1,250 as she is expected to live longer.
At 1100, the original thinking is that (1100×12)/155000 > 8.5%. That’s bloody splendid. You wouldn’t be able to find a more secured institution giving you such a high returns. In US, this will be known as some scam. The 4% out of the 8.5% comes from bonds, and the rest will depend on how many of the pool of annuity payers stay alive.
Take a Singaporean who reaches 55. As a CPF member, he must set aside a Minimum Sum in his Retirement account from ...
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