Reaching age 55

Dear Mr Tan

I will be reaching 55 years old this November. I was encouraged to buy into NTUC Income's annuity by a friend early this year.

However, with all these new govt policies coming out on the deferred bonus and interest rate on CPF, may I seek your advice whether I should still go for Income's annuity or not? I really appreciate your expert advice on this.

MY REPLY:

It is better to keep your money in the CPF retirement account to enjoy 4% plus 1%.

You can decide at a later date, when you are 62 years old, whether to invest in a life annuity from NTUC Income.