[forum456]

https://www.todayonline.com/singapore/ex...ie-2371906

[sgh]

This one other forums asked before. Why interest no give us becuz need to subsidize same batch ppl who live longer mah. If not govt need to pump in monies this Spore govt where got so bodoh?

[forum456]

https://www.dbs.com.sg/personal/articles...-of-cpf-sa

[moonrab]

It is very clear cut.

RA is a 4% plus interest account, similar to FD or T Bill principle assured saving investment. For growing your funds with 99.99999% safe investment.
Straight forward scheme. 

CPFlife is a type of insurance annuity plan that guarantee monthly payout to policy holders for life.
The amount you transferred into CPFlife at age 65 or 70 years old will determine your monthly payout value.
The higher you put in, the higher monthly payout you get for life.
The payouts $ to policyholder is from the pool collected from RA funds transferred into CPFlife. 

CPFlife is not a investment for higher interest %, because itself guarantees policyholder a fix monthly payout for lifetime, irregardless of the market condition. 

If you can find a Insurance annuity plan that offer the same condition payout for lifetime, please update over here.🤣
I will be very interested too...🤭

Now you know why TKL keep on topping his CPF account by cash...🤣

[sclim]

at the moment when interest rate is almost at ra rates and higher then normal account then it is better the buy 10-30 years gov bond. got extra potential of getting higher bond price if prevailing bond rates falls.

[sgbuffett]

For the CPF Life Basic Plan, only about 10-20% of your RA savings will be deducted as CPF LIFE premium when you join CPF LIFE. The monthly payouts are paid from your RA till about age 90. Thereafter, the payouts will be paid out from the CPF LIFE Lifelong Income Fund. This explains why the bequest is higher under the Basic Plan as the interest portion in your RA will form part of the bequest amount. The bequest under the other 2 plans is lower as the interest in the Lifelong Income Fund will not be included.

CPF Life Basic plan + pledge property so that you enroll with only BRS iss the way to minimize your participation in CPF  Life. 
For those in poor health and want to leave as much as possible as Bequest to children Basic plan + Pledge property is the best way to go.

[p1acebo]

It is very clear cut.

RA is a 4% plus interest account, similar to FD or T Bill principle assured saving investment. For growing your funds with 99.99999% safe investment.
Straight forward scheme. 

CPFlife is a type of insurance annuity plan that guarantee monthly payout to policy holders for life.
The amount you transferred into CPFlife at age 65 or 70 years old will determine your monthly payout value.
The higher you put in, the higher monthly payout you get for life.
The payouts $ to policyholder is from the pool collected from RA funds transferred into CPFlife. 

CPFlife is not a investment for higher interest %, because itself guarantees policyholder a fix monthly payout for lifetime, irregardless of the market condition. 

If you can find a Insurance annuity plan that offer the same condition payout for lifetime, please update over here.🤣
I will be very interested too...🤭

Now you know why TKL keep on topping his CPF account by cash...🤣

Alamak the other thread got deleted by the original thread starter.  

Must remind myself next time to check who is the thread starter (TS) in order to not spend so much time and effort elaborating only for the thread to be deleted by TS 

[p1acebo]

CPF Life Basic plan + pledge property so that you enroll with only BRS iss the way to minimize your participation in CPF  Life. 
For those in poor health and want to leave as much as possible as Bequest to children Basic plan + Pledge property is the best way to go.

Yes, correct.  What you mean is BRS and Basic Plan.

It is not wise to go full ERS if life expectancy not expected to be long as all interests accrued go to the common pool and not the NOK.  

The more you have in CPFLife the more you lugi in terms of interests foregone.  Also no flexibility.  

One is paid in dribs and drabs for life.  Cannot use it for investment and big ticket items like buying property, medical, son’s wedding etc.

The flexibility is only possible if we go up to FRS and let the balance standby in OA for investment opportunities or big ticket items. 

Already the break even for FRS using Standard Plan is around 85. If the person dies chun chun at 85, Imagine all the interests forgone from 65yrs to 85 yrs.  

All the interests go in the CPF Common Pool. The NOK gets nothing as his premium has been depleted.

Only choose ERS if you think you can live a long and healthy life. Otherwise you lock up your funds  unnecessarily with nothing to show for it in the end.

Still, no right no wrong and no one size fits all.  

If you have chosen ERS, you can still mitigate it by using Basic Plan going forward.  Why I say mitigate and not solve?  Because you get lesser monthly payouts in return for your NOK getting more.  There is always a trade-off.

CPF is your money and you worked hard over the years.  Learn to enjoy and reward yourself song song gao Jurong

Do not be kongkum to hand all over on a silver platter.  And do not brag or let them know too much about your CPF monies. Cos the longer you live, the lesser they get (even ZERO, so they may murder you quickly at 70 instead)  

[sgbuffett]

Yes, correct.  What you mean is BRS and Basic Plan.

It is not wise to go full ERS if life expectancy not expected to be long as all interests accrued go to the common pool and not the NOK.  

The more you have in CPFLife the more you lugi in terms of interests foregone.  Also no flexibility.  

One is paid in dribs and drabs for life.  Cannot use it for investment and big ticket items like buying property, medical, son’s wedding etc.

The flexibility is only possible if we go up to FRS and let the balance standby in OA for investment opportunities or big ticket items. 

Already the break even for FRS using Standard Plan is around 85. If the person dies chun chun at 85, Imagine all the interests forgone from 65yrs to 85 yrs.  

All the interests go in the CPF Common Pool. The NOK gets nothing as his premium has been depleted.

Only choose ERS if you think you can live a long and healthy life. Otherwise  you lock up your funds  unnecessarily with nothing to show for it in the end.

Still, no right no wrong and no one size fits all.  If you have chosen ERS, you can still mitigate it by using Basic Plan going forward.

After your account is exhaused seen from the bequest going to zero you take around 5 yrs to claw back what you put in the common pool.

If someone dies at age 75. Under the standard plan he contributed alot more to the common pool all that will be losses.

You have to live above 85 to actually gain under standard plan.

[p1acebo]

Nice titties

[RiseofAsia]

Most ppl think they can live up to 80.
But I dont think so lah…

[FartSunKing]

After your account is exhaused seen from the bequest  going to zero you take around 5 yrs to claw back what you put in the common pool.

If someone dies at age 75. Under the standard plan he contributed alot more to the common pool all that will be losses.

You have to live above 85 to actually gain under standard plan.

Ladies and Gentlemen

You can choose the BASIC PLAN just like what I did

Just follow my footsteps for you to enjoy your retirement life with maximum CPF Life payouts from Basic Plan

By topping up your RA account to the ERS, just like what I did on the 1st day of 2025

I transferred $117,300 from my OA earning 2.5% to my RA to earn 4%, EXTRA 1.5%

If I choose to start my CPF Life Basic Plan payout from age 70

I get EXTRA about $13K compound interests thanks to Lawrence Wong for the CPF changes effective this year

And the $117,300 that I transfered from my OA earning just 2.5% will earn 3.2% to 3.6% interest from age 70 till I die

Song boh?

[FartSunKing]

Ladies and Gentlemen

You can choose the BASIC PLAN just like what I did

Just follow my footsteps for you to enjoy your retirement life with maximum CPF Life payouts from Basic Plan

By topping up your RA account to the ERS, just like what I did on the 1st day of 2025

I transferred $117,300 from my OA earning 2.5% to my RA to earn 4%, EXTRA 1.5%

If I choose to start my CPF Life Basic Plan payout from age 70

I get EXTRA about $13K compound interests thanks to Lawrence Wong for the CPF changes effective this year

And the $117,300 that I transfered from my OA earning just 2.5% will earn 3.2% to 3.6% interest from age 70 till I die

Song boh?

Ladies and Gentlemen

This is what you want you CPF statement to look like as you age past 55 towards you CPF Life Payout age

To enjoy a HAPPY retirement life without having to worry about rising cost of food, transport and medicare

[p1acebo]

Song song gao Julong

[RiseofAsia]

Yes, correct.  What you mean is BRS and Basic Plan.

It is not wise to go full ERS if life expectancy not expected to be long as all interests accrued go to the common pool and not the NOK.  

The more you have in CPFLife the more you lugi in terms of interests foregone.  Also no flexibility.  

One is paid in dribs and drabs for life.  Cannot use it for investment and big ticket items like buying property, medical, son’s wedding etc.

The flexibility is only possible if we go up to FRS and let the balance standby in OA for investment opportunities or big ticket items. 

Already the break even for FRS using Standard Plan is around 85. If the person dies chun chun at 85, Imagine all the interests forgone from 65yrs to 85 yrs.  

All the interests go in the CPF Common Pool. The NOK gets nothing as his premium has been depleted.

Only choose ERS if you think you can live a long and healthy life. Otherwise you lock up your funds  unnecessarily with nothing to show for it in the end.

Still, no right no wrong and no one size fits all.  

If you have chosen ERS, you can still mitigate it by using Basic Plan going forward.  Why I say mitigate and not solve?  Because you get lesser monthly payouts in return for your NOK getting more.  There is always a trade-off.

CPF is your money and you worked hard over the years.  Learn to enjoy and reward yourself song song gao Jurong

Do not be kongkum to hand all over on a silver platter.  And do not brag or let them know too much about your CPF monies. Cos the longer you live, the lesser they get (even ZERO, so they may murder you quickly at 70 instead)  

You want to win this CPF game, you need live up to 92 years old lah. How many of us can complete the finishing line. They will only tell you the good stuff, but they wont tell you fine line(bad stuff).

[p1acebo]

You want to win this CPF game, you need live up to 92 years old lah. How many of us can complete the finishing line.

That’s why don’t put too much into CPFLife.  FRS is more than enough liao.  One can do so much more with the monies than letting it get stuck permanently with no interests paid from 65yrs.  

And only getting back in dribs and drabs slowly over the years 

[p1acebo]

Huatey Huatey 

[sgxin]

Most ppl think they can live up to 80.
But I dont think so lah…

One must live till 82yo to start enjoying the extra payout under CPF Life.

And max "loss" will be if the person dies at the end of 75yo.
Cos if the he/she keeps the ERS amount of $426K in his/her OA (hypothetical) and drawing out $3.33/mth, the nominees will get $239K from his OA balance. Whereas if all $426K is placed in RA, the nominees will only get $26.4K. This is a difference of $212.7K. 

So if one isn't sure on whether he/she can survive beyond 75yo (and not afraid of being scammed), best option will be to put the FRS amount into RA.