Wednesday, March 07, 2012

CPF Life - an analysis of the new plans to be introduced in 2013

I have analysed the Standard Plan and Basic Plan offered by CPF Life form 2013. I have also made some comment on the better terms that are offered for people who smaller savings, compared to those with higher savings. The question is - who is subsidising the lower income? [Tan Kin Lian]


My article is now available for members only in the FISCA website, www.fisca.sg



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3 comments:

  1. UnknownMarch 07, 2012 11:26 AM

    Hi, the following are the calculation that I did:

    Based on the PVA(Due) if one were to receive $13,080 every year ($1,090 per month x 12, for the CPF Life Plan of $130,000) and the discount rate of 4% from age 55 in 2013 till age 82.

    PVA(Due) = $260,953.99

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  2. Tan Kin LianMarch 08, 2012 8:15 AM

    @11:26 am. Please redo your calculation. The CPF Life is payable from age 65 (and not from age 55). Between 55 to 65, there is no payout, but the money is being invested in the fund.

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  3. UnknownMarch 08, 2012 10:20 AM

    OK sorry.

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