Personal Finance
What Happens After I Join A CPF LIFE Plan?
By Investment Stab  •  May 14, 2020
Members will choose their CPF LIFE plan when they wish to start receiving their payouts between the age of 65 to 70. They can choose between 3 plans listed above.
What Happens If I Chose The CPF LIFE Standard Plan? Members who chose the CPF LIFE Standard Plan, the following will happen to their CPF account:
  1. All savings in members' RA will be used as the annuity premium for CPF LIFE.
  2. Premiums will be paid into the Lifelong Income Fund.
  3. Interest earned on the premiums (4% + 1% + 1%) will be credited into the Lifelong Income Fund.
  4. Monthly payouts will be paid from the Lifelong Income Fund for as long as members live.
  5. If members passed away, all the money in their CPF and their CPF LIFE premiums that have not been paid out as monthly payouts will be given back to the members' loved ones as 'Bequest'.

Recommended Read: The 4% Shortfall In Your CPF Retirement Fund
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By Investment Stab
We are a group of Singaporean students who are curious and interested in Finance. As we dive deeper into this area in search of more knowledge, the more debates and differences we have. We also realised that financial literacy is not strongly inculcated in the younger generations, leading to numerous costly mistakes. Some of such includes believing in "high profiting" scams such as land banking and buying unnecessary investment schemes which are often motivated by the salesperson's personal interest ...
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