Thursday, February 07, 2019

A mistake to switch back to CPF Life

At age 55, a consumer bought a life annuity from a private insurance company using money from the CPF special account.

At age 65, he surrendered the life annuity and reinvested the money in CPF Life, as he thought that the payout would be better.

He obtained interest of about $2,000 for the money kept with the private insurance company for 10 years.

He learned later that the annuity payout from CPF Life was lower than the sum that he would have received under the original life annuity from the private insurer. He blamed the CPF for the low payout. He regretted making the switch.

http://www.fisca.sg/ArticleDisplay.aspx?ID=628

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