[Shion]

I was chit chatting with my wife over lunch. She has always earned more than me. But she is blur like sotong. Dunno what is happening. So I updated her on the changes to our CPF. The new ERS is 4 x BRS. We did a calculation. She will miss the new ERS amount by about $20k.

This surprised me. She is a banker. We did not overspend on Housing (OA). So I am wondering who are the people that can hit ERS??

I won't, for sure.

[sgh]

ERS is not mandatory so why go hit the cap?

[Ola]

BAD Planning of PAP, lah

the Cost of Living started to climb in 2022, 2023 . . .

Because of their own GST yet they forgot about CPF goalposts? 

Now PAP then Woke- up?

[Ola]

Dead Dragon is like Tat- Tat, SBQ and 烂泥

Make decisions but still half- dangling in the air

Siah- Suay PAP!

[p1acebo]

Thanks to FTX and other losses by Temasek, CPF is almost bankrupt so cannot afford to pay even 4% SA anymore

[[[ForeverAlone]]]

I was chit chatting with my wife over lunch. She has always earned more than me. But she is blur like sotong. Dunno what is happening. So I updated her on the changes to our CPF. The new ERS is 4 x BRS. We did a calculation. She will miss the new ERS amount by about $20k.

This surprised me. She is a banker. We did not overspend on Housing (OA). So I am wondering who are the people that can hit ERS??

I won't, for sure.

Your wife more smarter than you rah, you already said she is a banker.

Tactically speaking come investment. Is Always wiser don't play around , look for " loopholes " come Govt control assets. Like CPF for an example. If you want to invest , park your money earn interest is Always better stick with Bank or Insurance company offer Saving plan.

Last time got people say I ' stupid ' why never top up my SA so call ' become Millionaire " when retire. I told them , errr CPF this thing is Govt own. They can change the policy to suit their agenda. Than they told me , Cannot anyhow change rah. Need to debate in the Parliament , the house approve than will go ahead.

I told them hello , inside how many PAP ? Obviously what they going to plan surely approve go ahead since inside the house no much opposition. But again they claim , fellow PAP MPs will question etc. I just tell them nevertheless this CPF thing Govt can " Anytime " change is they control


So after so many years later , Lawrence Wong prove me I was Right end of the day.

[Ola]

If they anyhow change, the whole Singapore will go and RIOT

Especially that Jac Lau, may even commit suicide

[[[ForeverAlone]]]

If they anyhow change, the whole Singapore will go and RIOT

Especially that Jac Lau, may even commit suicide

They will change just that is not " always rah " like once in blue moon. I actually don't feel surprise in next 5 , 10 years they will change again some CPF policy.

[Symmetry]

This Govt jumped into new changes without contigency buffer for us. Those above 50 years old will not trust the Govt. Put the savings into Long Term is a better alternative.

[jus4lucky]

sg is doomed, cpf is a scam to setup to buff you to keep working. rules change when situation change according to pap.

[Sticw]

If they anyhow change, the whole Singapore will go and RIOT

Especially that Jac Lau, may even commit suicide

Jac CPF has little in SA lah. His million dollar mostly in OA.

[Goldmine]

Whatthe noises for the demise of CPF SA. I thought many CPF members claimed they can better managed their money and wants Govt to return CPF funds. Now with the demise of CPF SA these 55 yrs members can withdraw all their excess funds and made better investment on their own. Isn't it good for them?.

[sgbuffett]

Is it a good idea to top until ERS?

RA works like this.

1. You accumulate interest at 4% into own account until age 65.

2. After 65, your interest goes to common pool. If you choose to get monthly pay out it comes from your own account. So you get no interest  yinto your account and start to drawdown your account.

3. By age 80yo your account is depleted and you start to withdraw from common pool.

So I'd you die before  80 and after 65...you will be contributing to common pool without taking out of it.

Whether CPF Life is good for you depends on how long you live. If you live to exactly 80, you lose out the most in terms of interest.

So I consider CPF Life a risky bet on your life.

That is why many wanted safer option of CPF SA to accumulate interest.

The financial worse case is people who top up to ERS and die at age 80...they are losing hundred thousand in interest....

CPF Life forces us to bet on our lifespan.....

[red3]

What is this ers...

[sgbuffett]

CPF Life will be a bad scheme for most imo as most people will not live beyond 85yo.
A CPF member who tops up the ERS limit of $426K at 55yo will suffer the max interest loss of $415K if he/she is to die at 76yo.
If there is RSS, his beneficiaries will be getting this $415K amount.

Thus I feel CPF should have retained the RSS scheme as an option for members to decide how much RA fund to be parked under RSS and CPF Life respectively.
E.g. $300K into RSS and $126K into CPF Life.

Interest bal under the 3 scenarios - leaving $426K in OA, putting into RSS RA and CPF Life RA:

All 3 assume a monthly payout of $3.3K.
Under RSS, a $426K with 4% interest will last till 90yo, which is more than the life expectancy of Sporeans.

ERS mainly benefits those who live about 88yo which is a minority.

Also, the payout is conservative ...by right the payout should be higher so people break even compared with 4% fixed return at age 84 not 88 since 84 us average lifespans. 
The govt adjust the payout down to make 88 the break even age I believe to accumulate more in the interest pool as reserves for future and uncertainty cushioning...this does not benefit you at all you are just contributing to stabilise the scheme for future generations. 

Basically the odds are stacked against you. That is why people who have done their sums put as much as possible in CPF SA when the 4% generate enough monthly expenses it lasts forever.

Also CPF Life is not inflation adjusted which makes it extremely risky....imagine a few years of highbinflation the payout becomes inadequate.

Inflation risk actually makes putting the money in a good equity mix safer and provides better assurance for retirement.

[Ola]

Is it a good idea to top until ERS?

RA works like this.

1. You accumulate interest at 4% into own account until age 65.

2. After 65, your interest goes to common pool. If you choose to get monthly pay out it comes from your own account. So you get no interest  yinto your account and start to drawdown your account.

3. By age 80yo your account is depleted and you start to withdraw from common pool.

So I'd you die before  80 and after 65...you will be contributing to common pool without taking out of it.

Whether CPF Life is good for you depends on how long you live. If you live to exactly 80, you lose out the most in terms of interest.

So I consider CPF Life a risky bet on your life.

That is why many wanted safer option of CPF SA to accumulate interest.

The financial worse case is people who top up to ERS and die at age 80...they are losing hundred thousand in interest....

CPF Life forces us to bet on our lifespan.....

But the Govt reminded us to complete the Nomination Form

Is it another scam to deceive us??


CPFB | Making a CPF nomination

[SgWinner]

No point transfering SA to RA to hit the ERS as goalpost may shift over the next few years thus CPF become Cannot Payout For (U) ?