Withdrawing from our retirement account verses withdrawing from Annuities.

[tom]

Frankly, by reading from the papers and the reports, the whole picture seems blur.  Most grandparents should be in their late 50'S or early 60'S. Some are even older. We knew at the moment , the authorities are trying to bring forward, the minimum sum withdrawal age from 62 to 63 , 65 and so on.

Lets take a look at this scenerio :.

Assuming 2 old couple  63 years old today, had exhausted both their  retirement accounts.
They had 3 grown-up children age 30 and above having a combine CPF ordinary account of  $ 300 thousand.

Can they transfer $97,600 into their parents retirement account and allow them to draw a $ 790 X 2 monthly ?
If the old couple has some money in their bank accounts to live on. The $ 790 X 2 can then be split and return as cash to their children.

If the story is true......is this a loophole ?  Then we better act very fast .  2000 heads are surely better than 1 head.

[Alaska]

Not forgetting 3 children had already dumped their CPF into housing and their monthly contribution is used to sevice their monthly housing instalment.

[Stallion]

If my salary is $1.5mil per year, I would have accumulated far beyond the minimum sum in my CPF account in less than 2 years.
Too bad till date, most sinkies might not even have the minimum sum after working for their entire life.
Somemore now going to have annunities to reduce the minimum sum further, goodness!
And most importantly, how many sinkies can live beyond 85 years to enjoy that $200-300 per month payout?
And what is $200-300 in 40-50 years down the road? What can we buy? What will be the GST by then?
The most fury part is that if we do not live beyond 85 years old, the annunities we paid will be gone. WTF!
Why the benchmark age is 85? Pwee!

[tom]

The authorities wants us to look after ourselves lah......... ! Thats why, they came out with all sorts of plan, to make sure, we are not a liability to the state.

Now they are targeting on the 3 roomers, who had taken only " one bite of the cherry " meaning those who apply a flat from the HDB only once, and stay in it for life. In this proposal, the Govt. buys back the flat, pays the owner a lum sum of money, the balance goes to annuity for monthly withdrawal  till the occupant dies.

  Not applicable for those who had taken more than one bite. Not applicable for 4 roomers.  Incidently our 4 room flat in Punggol is smaller in area to the 3 rooms in some matured estates.

For those who are 50 years old and below, there is no escape. For those who are above, lets bite more cherries.