1. Option to contribute more into CPF Life to get a bigger payout
This option would come in handy when I reach 55 years young in 8 years’ time.
If at 55 I can’t find any good parking space (everything overpriced) for my “spare cash”, I would very much like this option to increase my CPF Life payout.
I think this may also appeal to cash flow fanatics out there – especially those who are worried sick they may run out of cash during their happy hour years…
Cash flow for Life anyone?
Of course it’s not totally risk free.
Just look at Iceland, Greece, Portugal, Spain, etc.
And if I am a Jap, I don’t think I’ll trust the Shogun’s promises looking at the way they are trying to debase their currency to banana republic status…
The main consideration for me at 55 would be – political risks.
2. Option to delay my CPF Life payout at 65 to a later date for bigger payout
If I hesitated at 55, there’s another 2nd chance at 65 (I hope).
To those who are healthy and working merrily at 65, wouldn’t it be nice to have the option to delay our CPF Life payout to 70 in order to secure a bigger payout for Life?
Works for those who are in great financial health at 65 too!
Imagine after diligently doing dollar cost averaging in a low cost fund for 30 years, you cash out at 65 during a multi-year bullrun! (Please don’t ask what happens if I am stuck in a multi-year bear run? You get outta here! Choy!)
Or you sold your HDB apartment for an obscene figure and now has downgraded in glee to a HDB studio apartment. Boo hoo hoo. You poor thing. Downgraded. Now asset light; cash rich!!! (Psst, you’ll be super popular at OG Chinatown, and some say in Batam too!)
Just switch landed property to shoe-box apartment if you are in the more exclusive private property club.
The main consideration here for me at 65 will be – would I be lucky? (As in would my financial goals and plans turn out the way I envisioned them decades ago?)
Glad you asked!
Look, if I’ve lost my mental capacity or I’m in a poor physical health, do you think financial matters will be high in my list of priorities?
I rather go with a smile than with clenched fists…
If my maker recalls me home, I’ll echo, “Hi! I’m home!”
I rather not bitch, “Why you call me back!? Can’t you see I am beeeeeesy???”
With the way some young children are talking back to their parents, I won’t be surprised!
Singapore Man of Leisure (welcome to my blog; just google it!)