Although Punggol residents are relatively young, it is always wise to make decisions after careful calculation, considerations because time runs fast.
The story......
A CPF member, on reaching age 55, is required to keep a minimum sum of $99,600 in his retirement account, to be withdrawn in monthly instalments from age 62. Monthly withdrawal $790 at age 62 for a period of 20 years, which means at age 82, he has no money left.
The authorities are considering getting CPF members to invest the $99,600 in an approved life annuity ( insurance company )
The payout under life annuity plan varies from $400 to over $500 depending on the insurance company you buy from. The advantage....the insurance company will pay you, monthly till the insurer goes to heaven. If he lives up to 101, the insurance company will pay him monthly till age 101. ( As long as he lives )
So what do you think will be the best option, when you are due for retirement. Have the amount in the CPF or dock them with the insurace company ?
Feel like u r "implanted" by some PAP pp to do some 'soft selling' before PM speech leh???
anyway, PM really announced earlier about making annuity "compulsory for those below 50 now" when they reached 65,..... so we kenna lor.....
As I mentioned in another thread earlier, I think he should make it an OPTION and NOT COMPULSORY..... we're not 3 yrs old u know?..... trust some of us to make some wise decision on our hard earned money ok? For eg, we could use that money to buy a small apt & earn rental income ok? At the same time, the value of the apt also appreciate.... hello, can annuity get that kind of return? Some more must pay those insurance company one big lump sum first...... Wah!!
