image1 image2 image3

Route to Passive Income

It is never too early to plan for retirement
Choosing the right CPF Life Plan - The Sunday Times

Choosing the right CPF Life Plan - The Sunday Times

1 Comment , , Edit


I believe this article in The Sunday Times (23 Aug) should be archived (especially the info-graphic below) in this blog.

The CPF Life Plan is compulsory for all Singaporeans and PRs who reached 55. So in 20 plus years time, albeit there will surely be more changes to the CPF scheme, the CPF Life Plan will be one of my retirement vehicles. The CPF Life Plan provides different trade-offs between the monthly payout amounts and the bequest you would leave your beneficiaries. The monthly payouts starts only at age 65 (earliest).

At my current age, it is too far to decide which retirement sum suits best for me. There will be a lot of factors involved.

What are the other passive income generators I will have?

What will be my total savings in my CPF Ordinary and Special Account?

Will I even have enough to meet the Minimum Sum?

Standard or Basic Plan? The Standard Plan provides a higher monthly payout and a lower bequest; it is the reverse for the Basic Plan.


The payout of S$1,863, the highest in the Enhanced Retirement Sum, is worth only S$845.37 in today's value. This is based on investing S$845.37 at a rate of 2.5% for 32 time period (that reveals my age. :) 32 years more to 65 years old).

It is tough to survive on S$845 in today's context. It will be the "same feeling" to survive on S$1,863 in 32 years time.

I can only guess what the retirement sum will be in 32 years time. Double? That sum will be "forced" into this CPF Life Plan and, definitely, it will be way higher than the current sum.

Share this:

CONVERSATION

1 comments:

  1. Mrs Sharon Sim8 November 2018 at 15:47

    Hello Everybody,
    My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of $250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of $250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you.

    ReplyDelete

Subscribe to: Post Comments ( Atom )