Buy life annuity at 62

Dear Mr. Tan,

The current 4% interest for retirement account is only for the next 2 year. Is it better to look for an annuity product that can give better return, or to leave the money with CPF?

REPLY

I suggest that you wait and see if the interest rate for the retirement account is maintained at 4% or more, beyond two years. I think that it may go higher.

You can wait until 62 to decide on buying a life annuity. You do not need to decide before that.