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+--- Thread: Why your interests are not accrued to you when your CPF Life payouts start (/Thread-Why-your-interests-are-not-accrued-to-you-when-your-CPF-Life-payouts-start)
Why your interests are not accrued to you when your CPF Life payouts start - p1acebo - 01-03-2024
https://www.todayonline.com/singapore/explainer-why-interest-retirement-accounts-not-accrued-once-cpf-life-payouts-start-and-how-much-will-your-family-get-when-you-die-2371906
Quite a good article. The powers that be have deemed it necessary for their propaganda machines to restart, and to inform all and sundry once again
I think not having interest paid out as it is an annuity type of product is fair and I do understand. And that is also why I would not want to put more than my fair share in it i.e. max FRS only. One can do way much better to have your extra 2 x BRS (ERS) working for you elsewhere and it belongs to you solely. ERS is for the brain dead
RE: Why your interests are not accrued to you when your CPF Life payouts start - Wy:Nox - 01-03-2024
Sounds like the Govt is determined to cheat us. It is our own money and RA cannot be taken out. So it is Daylight Robbery that we are not given our own interest earned.
RE: Why your interests are not accrued to you when your CPF Life payouts start - p1acebo - 01-03-2024
Yes, and lose 1.5% more in the process due to SA closure
RE: Why your interests are not accrued to you when your CPF Life payouts start - sgbuffett - 01-03-2024
(01-03-2024, 08:25 AM)p1acebo Wrote: https://www.todayonline.com/singapore/explainer-why-interest-retirement-accounts-not-accrued-once-cpf-life-payouts-start-and-how-much-will-your-family-get-when-you-die-2371906
Quite a good article. The powers that be have deemed it necessary for their propaganda machines to restart, and to inform all and sundry once again
I think not having interest paid out as it is an annuity type of product is fair and I do understand. And that is also why I would not want to put more than my fair share in it i.e. max FRS only. One can do way much better to have your extra 2 x BRS (ERS) working for you elsewhere and it belongs to you solely. ERS is for the brain dead
The concept is called risk pooling where some people live to 100 and others live to only 75. They get a fixed payout until death.
The key problem is while it addresses dofference in longevity its does not address the biggest risk called inflation.
$1000+ payout when you are 55yrs today and distributed at age 65 in 2034...may be totally inadequate due to inflation.
So what good is this scheme when it does not cushion against inflation?
I actually find CPF Life risky...and it is made compulsory for Singaporeans to enroll ....in a scheme that does not address inflation.
RE: Why your interests are not accrued to you when your CPF Life payouts start - lylcnn - 01-03-2024
Thought article is saying the interests earned are returned to your family.Look at the picture:
55yo: 200K
65yo: projected to reach 300K coz of interest earned
After 6 yrs of collection: total received as CPF payout: 97.8K
So returned to family: 202.3K
RE: Why your interests are not accrued to you when your CPF Life payouts start - sgbuffett - 01-03-2024
(01-03-2024, 08:43 AM)lylcnn Wrote: Thought article is saying the interests earned are returned to your family.Look at the picture:
55yo: 200K
65yo: projected to reach 300K coz of interest earned
After 6 yrs of collection: total received as CPF payout: 97.8K
So returned to family: 202.3K
During the 6yrs interested earned go to common pool
After 65 no more interest accrued in your own account.
Interest goes to common pool
RE: Why your interests are not accrued to you when your CPF Life payouts start - lylcnn - 01-03-2024
(01-03-2024, 08:49 AM)sgbuffett Wrote: During the 6yrs interested earned go to common pool
After 65 no more interest accrued in your own account.
Interest goes to common pool
Yeah by then you essentially is buying an annuity plan liao....
RE: Why your interests are not accrued to you when your CPF Life payouts start - Lukongsimi - 01-03-2024
Stuck there forever without profits what for ?
RE: Why your interests are not accrued to you when your CPF Life payouts start - Sticw - 01-03-2024
(01-03-2024, 08:25 AM)p1acebo Wrote: https://www.todayonline.com/singapore/explainer-why-interest-retirement-accounts-not-accrued-once-cpf-life-payouts-start-and-how-much-will-your-family-get-when-you-die-2371906
Quite a good article. The powers that be have deemed it necessary for their propaganda machines to restart, and to inform all and sundry once again
I think not having interest paid out as it is an annuity type of product is fair and I do understand. And that is also why I would not want to put more than my fair share in it i.e. max FRS only. One can do way much better to have your extra 2 x BRS (ERS) working for you elsewhere and it belongs to you solely. ERS is for the brain dead
Bro, so if I don't think I will live long and want to max amt that goes to my family, what should I do?
Supposedly I have more than enough funds in CPF for the BRS by the time I'm 55yo.
Thanks for your view.
RE: Why your interests are not accrued to you when your CPF Life payouts start - p1acebo - 01-03-2024
(01-03-2024, 09:25 AM)Sticw Wrote: Bro, so if I don't think I will live long and want to max amt that goes to my family, what should I do?
Supposedly I have more than enough funds in CPF for the BRS by the time I'm 55yo.
Thanks for your view.
Bro, be more optimistic about your lifespan lah
Based on your scenario, Basic Plan is more worth it as it leaves more bequest to your NOK between ages 65 to 85 (NB. Basic Plan and Basic Retirement Sum are two different concepts).
Open to other viewpoints, other bros / sis pls provide inputs
RE: Why your interests are not accrued to you when your CPF Life payouts start - Oyk - 01-03-2024
(01-03-2024, 08:41 AM)sgbuffett Wrote: The concept is called risk pooling where some people live to 100 and others live to only 75. They get a fixed payout until death.
The key problem is while it addresses dofference in longevity its does not address the biggest risk called inflation.
$1000+ payout when you are 55yrs today and distributed at age 65 in 2034...may be totally inadequate due to inflation.
So what good is this scheme when it does not cushion against inflation?
I actually find CPF Life risky...and it is made compulsory for Singaporeans to enroll ....in a scheme that does not address inflation.
You don't know there is one option that is escalating? Go read www.cpf.gov.sg It's all there.
RE: Why your interests are not accrued to you when your CPF Life payouts start - Sticw - 01-03-2024
(01-03-2024, 09:59 AM)p1acebo Wrote: Bro, be more optimistic about your lifespan lahSo for CPF life just take basic plan rite?
Based on your scenario, Basic Plan is more worth it as it leaves more bequest to your NOK between ages 65 to 85 (NB. Basic Plan and Basic Retirement Sum are two different concepts).
Open to other viewpoints, other bros / sis pls provide inputs
Then do I pledge property for min sum and encash CPF or I don't pledge property and just use my CPF funds for the min sum? Min sum will translator basic plan fund at 65yo rite?
RE: Why your interests are not accrued to you when your CPF Life payouts start - Sticw - 01-03-2024
Within the next govt term you will see retirement age move up from 65 to 67 and towards 70. Thereby the cpflife will inevitably kick in later and no longer at 65yo...
Everyone can die before you see any payout and the sum into cpflife will just grow to sustain the social cost of the rest who remains... No social cost to govt liao cos the rest of the CPF members pay for the cost of those remaining... Big money...
Just like careshield they let insurance co earn a few years and take back. Cpflife eventually the govt can write the annuity and keep the money in own pocket...
just one possible track...
RE: Why your interests are not accrued to you when your CPF Life payouts start - Oyk - 01-03-2024
(01-03-2024, 09:21 AM)Lukongsimi Wrote: Stuck there forever without profits what for ?
Investment gurus always think they can make more money with their money than CPF Board can.
In truth most peepur who withdrew their CPF for investments lost money. The government helps the majority to save for retirement and gives them a reasonable ROR but they want to go their own way. Serves them right lorh.
Those who think they can make more money outside are free to withdraw all that they can. But I'd bet most peepur would leave their money with CPFB, and increase the RA even. Sinkies do trust the government on this never mind if they are Pritam Singh lovers. CPF is not EPF. Over there, the government allowed jhks to withdraw $33b of their EPF and now they cannot retire because there's little money in the EPF. Here, we did not withdraw anything during covid, instead the government withdrew our reserves and GAVE the money to us.
Voter wisely. Vote for more good years. Vote for Lawrence Wong!
RE: Why your interests are not accrued to you when your CPF Life payouts start - p1acebo - 01-03-2024
(01-03-2024, 10:04 AM)Sticw Wrote: So for CPF life just take basic plan rite?
Then do I pledge property for min sum and encash CPF or I don't pledge property and just use my CPF funds for the min sum? Min sum will translator basic plan fund at 65yo rite?
Hmm.... yes you can do that. Better to check with CPF also. Just bear in mind that with the Basic Plan your payout will be lower in your later years, think after 85 yrs or 90yrs
RE: Why your interests are not accrued to you when your CPF Life payouts start - Napoleon Porlumpar - 01-03-2024
(01-03-2024, 08:25 AM)p1acebo Wrote: https://www.todayonline.com/singapore/explainer-why-interest-retirement-accounts-not-accrued-once-cpf-life-payouts-start-and-how-much-will-your-family-get-when-you-die-2371906
Quite a good article. The powers that be have deemed it necessary for their propaganda machines to restart, and to inform all and sundry once again
I think not having interest paid out as it is an annuity type of product is fair and I do understand. And that is also why I would not want to put more than my fair share in it i.e. max FRS only. One can do way much better to have your extra 2 x BRS (ERS) working for you elsewhere and it belongs to you solely. ERS is for the brain dead
the whole point is to save on the compounding interests...............CPF will collapse since it is not sustainable.............so they desperate liao........
