CPF Life and Annuities

[lifeafter41]

While I have not really understood on the CPF Life scheme, from what I understand is bascially an annuities scheme where lump sum is being paid upfront and the person will basically get a sum of money every month till they die.

Is there any annuities currently that is better than CPF Life scheme, that is being offered by other insurance companies in Singapore?.

 

[makapaaa]

It's merely an exercise by the wicked FAPee Traitors to make it official that they would not return Sporns their blood and coffin CPeeF money.

 

[jw5]

While I have not really understood on the CPF Life scheme, from what I understand is bascially an annuities scheme where lump sum is being paid upfront and the person will basically get a sum of money every month till they die.

Is there any annuities currently that is better than CPF Life scheme, that is being offered by other insurance companies in Singapore?.

The basis of the sustainability of any annuity scheme is that some people will die earlier and some will die later, hence "evening" it out for the organization paying out the annuity.
But the main objective for the paying organization is that they get to keep the lump sums from their annuity holders, which they can use to invest or other purposes.

 

[ccchia]

There are lots of annuity schemes available from any of the Sinkapore insurance companies. Do not need to use the one offered by CPF, if annuity is what one is looking for (whose goal is to hoodwink gullible Sinkies of their CPF cash).

 

[lifeafter41]

There are lots of annuity schemes available from any of the Sinkapore insurance companies. Do not need to use the one offered by CPF, if annuity is what one is looking for (whose goal is to hoodwink gullible Sinkies of their CPF cash).

From what I understand, annuity is supposedly to be making payment for life, till death, that is.

Just saw on the CPF Life website site, payment is till 82, is there some sort of and error, or is only applicable to certain CPF Life plan.

 

[lifeafter41]

The basis of the sustainability of any annuity scheme is that some people will die earlier and some will die later, hence "evening" it out for the organization paying out the annuity.
But the main objective for the paying organization is that they get to keep the lump sums from their annuity holders, which they can use to invest or other purposes.

So far, do you know of any insurance organisation that offer this, the likes of NTUC, AIA or Prudential etc.

Comparatively to CPF board offer, are they better?. And I understand the CPF Board payout is not guaranteed, but may varies, this is the term that is troubling, "what they mean by varies"

 

[jw5]

So far, do you know of any insurance organisation that offer this, the likes of NTUC, AIA or Prudential etc.

Comparatively to CPF board offer, are they better?. And I understand the CPF Board payout is not guaranteed, but may varies, this is the term that is troubling, "what they mean by varies"

I'm not certain, but I think they all do. The plans will vary.
Not sure how they compare to CPF board, but my guess is that some will be better and some not.

 

[lifeafter41]

I'm not certain, but I think they all do. The plans will vary.
Not sure how they compare to CPF board, but my guess is that some will be better and some not.

Assuming let's say, if I have 100k(i know its a small sum), would it be better to put it in annuity to get a monthly return for the rest of life or to leave it in some sort of FD?

Would you do that? I mean to put it in annuity?

 

[kingrant]

CPF life promises at least 2.5% up to 4%. FD you can never get this return..

Assuming let's say, if I have 100k(i know its a small sum), would it be better to put it in annuity to get a monthly return for the rest of life or to leave it in some sort of FD?

Would you do that? I mean to put it in annuity?

 

[johnny333]

Would you do that? I mean to put it in annuity?

A better investment strategy is to put into blue chips(not in Spore). You get dividens plus capital appreciarion.

Unfortunately the PAP has robbed people of this oppurtunity. They have only given a measely 2% to 3% when it was possible to get a better rate of return elsewhere & now they want to keep the principal until you die

 

[Ramseth]

So far, do you know of any insurance organisation that offer this, the likes of NTUC, AIA or Prudential etc.

Comparatively to CPF board offer, are they better?. And I understand the CPF Board payout is not guaranteed, but may varies, this is the term that is troubling, "what they mean by varies"

In terms of cents and percents, CPF Life beats them all hands down, just the same as CPF OA/SA (2.5 - 4%) beat banks (0.X - 1.X%) hands down.

 

[kingrant]

Yes most of them do. But count on lower payouts for same amount. All of them also not guaranteed. Nobody can foretell future so how to guarantee?

So far, do you know of any insurance organisation that offer this, the likes of NTUC, AIA or Prudential etc.

Comparatively to CPF board offer, are they better?. And I understand the CPF Board payout is not guaranteed, but may varies, this is the term that is troubling, "what they mean by varies"

 

[kingrant]

Agreed. Despite all the rants and raves abt govt/CPF cheating yr money, CPF still gives the best deal. Which means those rage are not true.

In terms of cents and percents, CPF Life beats them all hands down, just the same as CPF OA/SA (2.5 - 4%) beat banks (0.X - 1.X%) hands down.

 

[kingrant]

This is not true. Unless you have actual figs to compare and state to the contrary, you shld not make false statements that mislead. Some pple are here looking for advice and answers and not all are ranting at the govt. CPF life still offers the best deal. 2.5%--4% interest higher payouts under same conditions.

There are lots of annuity schemes available from any of the Sinkapore insurance companies. Do not need to use the one offered by CPF, if annuity is what one is looking for (whose goal is to hoodwink gullible Sinkies of their CPF cash).

 

[jw5]

CPF life promises at least 2.5% up to 4%. FD you can never get this return..

True about the return. But what about the principal amount?

 

[jw5]

Assuming let's say, if I have 100k(i know its a small sum), would it be better to put it in annuity to get a monthly return for the rest of life or to leave it in some sort of FD?

Would you do that? I mean to put it in annuity?

I would if I have lots of money, which I don't.
I don't mind the idea of an annuity, but the main question I have is what happens to the principal amount. It would be nice to be able to use the principal amount, while I am still able to.

 

[kingrant]

In FD you get back yr principal. But where are you going to get yr principal to invest in the first place, because you can't take out the SA part anyway. In CPF life, it will be used to 'pay' for the premium for the annuity.

True about the return. But what about the principal amount?

 

[kingrant]

Don't confuse yrself with the Ordinary Account and the Special Acct. The OA can be withdrawn on yr retiring age (just sign a paper and it will be transferred to yr bank acct. CPF will send the letter to you). You can't withdraw the SA. It will be used for the CPF Life annuity scheme by default unless you buy yr own.

I would if I have lots of money, which I don't.
I don't mind the idea of an annuity, but the main question I have is what happens to the principal amount. It would be nice to be able to use the principal amount, while I am still able to.

 

[kingrant]

What actually happens in the CPF life scheme is that the amount in yr SA gets parked with CPF Life. Then it accumulates interests at between 2.5% a minimum which CPF guarantees and up to 4% which varies. Yr monthly payouts will be apportioned out over 20 years or so from the principal amount in the SA. When that begins to run out, the accumulated interest portion will be paid out.

 

[phouse3]

We should never miss the forest for the trees. Opposition parties with the philosophy that all PAP policies are inherently good but not perfect and hence give their 2 cents' worth in micro-analysing should be rejected.

The entire exercise is part of the grand scheme to withhold our CPF money. The others are Minimum Sum, Minimum MediSave Amount and Withdrawal Age (all of which are being consistently raised).

- CPF Life is a fart in the wind compared to the shocking effect of raising the withdrawal age to 65*
- CPF Life is a part of the annuity scheme which starts paying out at 65 **
- CPF Life is the tailend of the annuity scheme which most people never live to see ***
- CPF Life has a very weak link to longevity ****
- CPF Life is opium to numb your senses *****

CPF money is the exclusive, private and personal asset attached to the particular saver. It is pension fund to be spent during his retirement and within his lifespan. The attachment can never be severed. CPF money cannot be brought to his grave and should not be passed on to another person.

Withholding savings from the people under the pretext of insufficiency is glaringly ridiculous! People with insufficient savings are really the ones most in need of the money. There was a case of a man who committed suicide by jumping off the MRT platform in order to monetise his CPF savings for his family.

When our CPF savings are insufficient, the most obvious solution is to boost our earning power prior to retirement. But we have our earning power eroded due to unemployment, underemployment and wage depression. So the policymakers keep raising the retirement age for 2 purposes: defer the withdrawal age and keep the CPF savings coming in. The result: work till you drop dead.

Using a real illustration: Foreign exchange dealers could afford to retire at 40~45 because they have high earning power. Toilet cleaners have to work till they drop dead due to their low earning power. An average Singaporean is in between. Now, with wage depression and underemployment, the main body of Singaporeans are being pushed in the direction of toilet cleaners' circumstance.

The freedom to manage our own money is the most fundamental human right. Opposition members who claim that the return of CPF money at 55 will cause inflation should have their heads and integrity examined.







* There are dire consequences to raising the Minimum Sum and withdrawal age. (1)The poor, chronically unemployed and early retirees will see their means of living slip further and further away from their hands. Suicide rates will soar. (2) People with no next-of-kins will lose their money if they die early.

** It can be as low as 10% of your annuity or 100% depending on your choice.

*** Many people don't even live to see the start point at 65. There are lies, damn lies and statistics. Reading off the mortality table will convince you so.

**** The policymakers even U-turned and wiped 5 years off the lives of all current and future Singaporeans by lowering the life expectancy from 85 to 80 years - overnight - just to suit their arguments. Life expectancy relates to that of a baby born today. It doesn't say an average Singapore will live to 80. It refers to a rare few with longevity genes. Reading the obituaries will tell you so.

***** Before and without the opium, even a dumb Singaporean knew how to ask: Will I live to 65? 80? or 90? Will I be able to smell my CPF money before I hit the coffin?