Last week, I received an email from a reader asking for my opinion if she should surrender her annuity and top up her CPF Retirement Account to get a higher monthly payout from CPF Life.

Grab a cup of coffee while you read this article because it’s going to be a long one.

Here’s how the email goes.

Hello,

I have been following your blog for a while. I refer to your blog about the CPF Life and Private Annuity Plan.

I am 65 this year, self-employed. Yearly I top-up my RA for tax relief in addition to Voluntary Contribution to the 3 accounts (OA, SA, MA). A month ago, I decided to defer my CPF payout to age 70 to enjoy the interest rate. By 70 years old, I probably would chose to join the CPF Life Scheme for life-time payout.

5 years ago (year 2014), my friend, a NTUC Income