Tuesday, August 07, 2007

Earn 4% on your CPF retirement account

Dear Mr Tan,

I have been approached by an insurance agent to buy a life annuity from NTUC, using my CPF minimum sum. I have just passed 55 years. What do you advise?

REPLY

You can read paragraph 3 of this FAQ on Financial Planning for Seniors.

As CPF is paying interest at 4% per annum on your retirement account, it is quite attractive. You should keep your money there.

You have additional savings that can be used to buy the life annuity.
Posted by at

3 comments:

Anonymous said...

CPF pays more than any insurance companies. It can last as long as you decide. If you decide to recieve your payout till 100 years old you can arrange with CPF for payouts at a reduced amount but still compounded at 4% guaranteed. Where can you get such a good deal?

August 08, 2007 12:12 AM
Anonymous said...

Don't be conned by insurance agents
who tell you to buy annuity with your CPF minimum sum and try to convince you that leaving with CPF your money will run out and that annuity will last a life time.
Yes annuity will run out but you can decide when to run out. If you think you can live to 100 years old then plan the payout to 100 years old. Isn't this wonderful? You get more than buying an annuity.
What is life time? Get the agent to define it. Is 65 or 70 or 80 or 90
or 100 considered a life time.If one dies at any of these ages it is life time, don't you agree? The agents are always trying to frighten you.If they don't frighten you how to earn a commission.
Yes you benefit if you live to 200 years old. But, but !!!!you can buy an annuity with cash and cash only if you die, die must buy.

August 08, 2007 10:07 AM
Anonymous said...

I agree with Mr. Tan. Don't buy annuity with your CPF minimum sum.This is the best.No where can you
get a risk free 4%.
Use cash if you want to supplement your income.

August 09, 2007 12:22 PM

Post a Comment

Subscribe to: Post Comments (Atom)

Blog Archive