A reader's questions after reading a recent blog post of mine:
My reply:
Hi iwimsasl,
If we do not believe that having an annuity is a good idea to help fund our retirement, then, this is probably a bother. However, if we believe that an annuity is a good idea, then, there isn't a better annuity offer than the CPF Life out there.
CPF Life is meant to start paying out at age 65 but we can choose to defer the starting age till 70. The benefit is that the payout will be bigger monthly because the CPF-RA funds will have another 5 years to accumulate. Allowing earlier withdrawal would translate to a less meaningful monthly payout which is why it is not a good idea.
Will the minimum age be raised from 65 to 67? I don't know but I don't think it is a bad thing if it should happen. It would probably mean that ......