People sometimes ask too much from a scheme which many are finding hard to meet. Inflation should not be a primary a concern for CPFLife as the rate of return is pegged to interest rate. Inflation follows interest rate in tandem. More importantly is having enough to buy.
Those who have existing annuity should have their annuity reviewed if it is advantageous to terminate and switch to CPFLife to get better payouts. Seek FISCA for help.
Be careful. there are insurance agents trying to find a way to sell you their annuity product. These agent don't care about the best interest for you ,they just want to make a sale out of you. Do look out . if you should be approached, don't agree but seek second opinion here or FISCA. These despicable agents are salesmen and women who don't have your interest at heart.They must be reported to MAS.
ntuc agents are still pushing hard the annuity plan despite knowing that it is not comparable to CPFLIFE. I wonder how many have fallen victims to these greedy and unscrupulous agents.
There is a flaw in the Minimum Sum (MS) scheme which was published in the forum page of ST recently. I understand CPF Board is currently reviewing it.
In my dad's case (he is over 65), although he can top up his retirement account by $90k, his monthly payout under MS is only $297. This pales in comparison with the payouts under CPF Life of above $500. Intuitively, payout under MS should always be higher than that of CPF Life as the former cease payment over 20 years. Is it not?
I hope the Board could work towards the benefits of these group of retirees quickly.
Actually, I personally won't buy an annuity, whether CPF or private. I've been managing my own finances since 21. But since now it's become compulsory, I have no choice. CPF Life is quite a fair scheme except for 2 things:
1. It's not indexed to inflation.
2. It's not immediate. After the introductory batches are settled and the scheme moves into autogear, there's a 10-year lockup period between 55 and 65. I'd prefer to let the CPF investor choose the investments before 65, then convert the proceeds at 65 to CPF Life as immediate annuity.
Indexed means lower payouts. How about it? It is LPPL, right? But you forget that the return is pegged to the average 10 year bond. In inflationary time the bond yield should go up . Isn't this indexation?
"COMPARING QUOTE....The best way is to buy 'form' insurance company..."
ReplyDeleteWas there a typographic error?
Beside CPF Special Account, how many folk has 200k in cash for Annuity?
ReplyDeleteWould it be better to use 100k
for illustration.
Mr Tan,
ReplyDeleteWhat is your comment to
"CPF Life scheme should factor
inflation" by David Boey (ST 31 Oct, p.A42) ?
Thanks.
People sometimes ask too much from a scheme which many are finding hard to meet. Inflation should not be a primary a concern for CPFLife as the rate of return is pegged to interest rate. Inflation follows interest rate in tandem. More importantly is having enough to buy.
ReplyDeleteHi Mr Tan,
ReplyDeletewhere can I buy a copy of your book?
Takk.
Ken
Those who have existing annuity should have their annuity reviewed if it is advantageous to terminate and switch to CPFLife to get better payouts.
ReplyDeleteSeek FISCA for help.
Mr. Tan, thanks for the chapter. I'll just point out a typo.
ReplyDelete"COMPARING QUOTES
Before you buy an annuity, you should *get* compare the quotes provided by a few insurance companies..."
The word "get" seems extraneous and can be deleted.
Be careful. there are insurance agents trying to find a way to sell you their annuity product.
ReplyDeleteThese agent don't care about the best interest for you ,they just want to make a sale out of you. Do look out . if you should be approached, don't agree but seek second opinion here or FISCA.
These despicable agents are salesmen and women who don't have your interest at heart.They must be reported to MAS.
ntuc agents are still pushing hard the annuity plan despite knowing that it is not comparable to CPFLIFE.
ReplyDeleteI wonder how many have fallen victims to these greedy and unscrupulous agents.
must report them to MAS
ReplyDeleteThere is a flaw in the Minimum Sum (MS) scheme which was published in the forum page of ST recently. I understand CPF Board is currently reviewing it.
ReplyDeleteIn my dad's case (he is over 65), although he can top up his retirement account by $90k, his monthly payout under MS is only $297. This pales in comparison with the payouts under CPF Life of above $500. Intuitively, payout under MS should always be higher than that of CPF Life as the former cease payment over 20 years. Is it not?
I hope the Board could work towards the benefits of these group of retirees quickly.
Actually, I personally won't buy an annuity, whether CPF or private. I've been managing my own finances since 21. But since now it's become compulsory, I have no choice. CPF Life is quite a fair scheme except for 2 things:
ReplyDelete1. It's not indexed to inflation.
2. It's not immediate. After the introductory batches are settled and the scheme moves into autogear, there's a 10-year lockup period between 55 and 65. I'd prefer to let the CPF investor choose the investments before 65, then convert the proceeds at 65 to CPF Life as immediate annuity.
Indexed means lower payouts. How about it? It is LPPL, right?
ReplyDeleteBut you forget that the return is pegged to the average 10 year bond. In inflationary time the bond yield should go up . Isn't this indexation?