Today's post will be on: What is CPF LIFE?
CPF LIFE is a scheme that is meant to provide you with a fixed monthly income from when you start your retirement at age 65 till when you are dead.
When you reach 55 years old, a Retirement Account is created and the Retirement Sum is transferred from your Ordinary and Special Account to this account.
The money will be used to fund your retirement when you reach the retirement age (currently 65).
It is like a one-time annuity insurance payment instead of a monthly annuity insurance payment like the ones most people signed up for*.
However, it has an embedded feature - sort of like life insurance.
In the event that you passed away before you fully utilised your CPF Retirement Sum, the amount remaining will be passed to your dependents/beneficiaries.
You will need to choose between 2 CPF LIFE Schemes: The Basic Plan & the Standard Plan
| Topics | Basic Plan | Standard Plan |
|---|---|---|
| Monthly Payout | Lower | Higher |
| Bequest** | Higher | Lower |
*Annuity Plan is an insurance plan that pays you a monthly amount each month when you reach a certain age (usually when you retire). It will continue to pay you until you pass away.
**Bequest is the amount you give to your beneficiaries when you pass away.
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Remember to offer your opinions. If you don't put your two cents in, how can you expect to get change?
Have feedback? Tell us now!
Subscribe to us or
Follow us: Investment Stab on Facebook
How's the offer compared to a normal annuity which can be bought in the market?
ReplyDeleteHi Teoh,
DeleteThank you for your question.
We are currently also working on an article to compare between CPF LIFE and private annuity plans.
However, because there are several institutions providing such service, we need to do more research.
We will post that post soon!
Stay Tune and thank you! :)