[[[ForeverAlone]]]

Is CPF Life a good scheme or bad scheme ....how does one evaluate the scheme....to say it is good or bad.

The answer is internal rate of return. Some one worked out already if you collect CPF Life the die at age 85 or age 90 collect monthly until that age plus the residual sum given to your children ...what is the return?

The internal rate of return is 3.5%-4%  unadjusted to inflation. 



So the real real return if you include 1-2% inflation is 1-2%.


This return isn't guaranteed.  But likely mechanism is to loan to GIC which pays the return underwritten by sizable reserves. So for all intent and purposes you can say it is more or less guaranteed.


So you get higher return  if you can just leave it in CPF SA.


Unless you are one of those who live to 120....for most people it's return is lower than Special account.

So knowing this one is better off to apportion between CPF SA and CPF life in RA properly

GO ASK YOUR IDOL LOL " Mr Loo " lah , Your Idol claim CPF IS THE BEST no wonder can take photo with tharman, disgrace chan chun sing so call First non civil servant get a public service award.