Response to (CPF at 55: Alternatives for My Lump Sum Withdrawal): CPF Life vs Insurance Annuities

[@KyithNg]

Generally that is a good comparison. The bequest, IRR and all income payouts (CPF LIFE or insurance) are all projections. Folks should read them more as.... it should be around there with the insurance income leaning closer to the idea the returns of the participating fund delivering up to standard returns.

[@GuanMinMax]

Thanks for watching and your feedback! Been a reader of your blog as well. Yes all are projections based on what they. If you’re up for it would love to have you on to hear your thoughts on the options out there vs cpf life

[@chrischew1410]

Good comparison. Can u do the same for standard plan? Thks!

[@GuanMinMax]

Thanks for watching! Yeah I’ll look at the standard plan and compare all 3. Seems like the new cpf life calculator doesn’t show the bequest so will need to find that out first.

[@kgl5289]

Hi. Good comparison....but something to point out. Correct me if I am wrong. Opt #1=should have interest earned when put in additional $213k into the RA when age 55yrs old, right? (by the way, what do you meant by EHS? Is it ERS?). Why didn’t put Simon's Option B to have a complete comparison? The Annuity plan with pay-out that starts at 58 yrs old? From 58 to 64 yrs old, is a 7yrs-period of pay-outs. Although the pay-out is low, but it still deserve to mention based on interest rate earned. Thank you.

[@GuanMinMax]

Hi, thanks for your comment. For #1, yes there is the additional RA interest that you earn for the amount. But the cpf calculator already accounts for that if you put the ERS at 55. So the payout is the projected amount we should get. Yes I meant ERS. For the other option that Simon mentioned, I didn’t think that it was too close of a match to the other 3 options I showed in the video so I left it out. Felt like I had too many to go through already.

[@marcustan6470]

my understanding for Insurance Option.. there's a Guarantee Principal right? end of road, Insurance company will return this Principle to our love one right?

[@GuanMinMax]

From my understanding, it decreases along the way as you age and get more distributions from the policy. I got the 85 yo death benefit numbers from the presentation Simon did in Swee Yong’s video.

[@reallynousername]

thanks for the info. BTW, the background music is a bit distracting.

[@GuanMinMax]

Noted! Thanks for watching, will lower it down in the next one