if we use the old scheme, and we keep 60K at 55 and we use the current tier interest system (under 60K 4% int, excess 60K 2.5% int), and we take out 500 a month, but we defer the monthly withdrawal by 18 months,

the monthly withdrawal of 500 can last for 23.5 years until the person is 23.5+66.5
=90

If we keep the old interest scheme where anything is subjected to 4% interest, the 60K can last even longer.

How many of us live beyond 90?

This CPF life scheme is just to suck us of our monies.

so effectively, we are lending monies to the govt at an even lower interest rate than 4%.

This scheme is evidently a scheme to not return our hard saved monies.

The average pay in Singapore is 2000 a month.

Take home is say 1600 a month.

take away 150 for transport and 300 for food. You have 1250 left.

If you have a mother to support, then you don’t have much monies left.

during this past 5 years, how much has been stuff down our throat? and how much of our hard earned money has been “locked” up?

Thanks for pointing out the error. It should read as 79 years old instead of 89.

And yes, the discrepancy is therefore huge, even if you take into consideration that I am using out-dated data, and that the US life expectancy is slightly lower than Singapore.

I like to know why is CPF so rigid?
I mean can it allow middle-aged citizens withdraw their hardearned CPF in times of crisis such as this Financial Crisis or when they are Retrenched and they now need money to start a business to feed themselves and their dependents?

I hope candidates with would stand for election voice this up and fight for citizens to get their CPF money for use in times of crisis.

What if people commit suicide due to financial difficulties? But why is there financial diffculty if they own money in CPF?

under the old CPF scheme, the PAP puts forward the scenario that you will have nothing left for retirement when you live pass 80.
this is not true, elderly who pass 80 can apply for Public Assistance @ $360/month(inflation-correlated) with free meals and occasional hongbaos from hearty volunteers and philanthropists.

That was a good analysis. Thanks.

BTW, you said “US actuarial life table (2005) indicate that for a 55 year old male, life expectancy is 24 years or age 89.” Shouldn’t it be 79 instead of 89? If it is 79, the gap is HUGE!

So, it is implementing the CPF life in this manner.

This scheme is another manipulation.

Initially we were not told that the interest is lost and not return to our children as bequest amount.

Now, they unilaterally decided on that.

So, it is all planned.

The lost in interest is actually an estate tax (in disguise).

so the govt has remove estate tax for the rich but introduced to the middle class so that these middle class stay middle or even downgrade.

The biggest disadvantage to an individual is that the interest earned on the annuity premium will go to the CPF LIFE fund from age 55 to the respective draw-down age of 90, 80 or 65, and thereafter. There is no rebate on the interest earned in the event of death of the member.

The interest forgone is significant in sum. For example, a 55 years old, Male, with just $40000 in his CPF, and enrolled in LIFE Balance, will stand to lose about $19990 in interest (from age 55 to 80) as a result of the $12000 annuity premium, as the interest earned will be credited to the CPF LIFE Fund instead.

That means the lost of bequest of up to $19990 if the person signs up for the LIFE Balance and does not live up to age 80 or a loss of up to $11780 for LIFE Basic if the person does not live up to age 90.

This would not be the case if the sum was retained in the CPF Retirement Account (RA) and earning interest that is credited back into the RA.

Assuming the same withdrawal of $343 from age 65 onwards (as per LIFE Basic), the $40000 in the CPF Account can last up to age 96.

Assuming the same withdrawal of $362 from age 65 onwards (as per LIFE Balance), the $40000 in the CPF Account can last up to age 92.

US actuarial life table (2005) indicate that for a 55 year old male, life expectancy is 24 years or age 89.

That indicates for the vast majority, limiting the withdrawal to the above monthly limits, but leaving the sum in the CPF RA would yield a far greater benefit than participating in the scheme.

The L-Bonus distorts the above for those above 53 of age.

If you are already above 55, you may consider signing up for CPF LIFE because of the $4000 L-bonus.

The best deal would be to sign-up for LIFE Basic. By doing so, you would minimise the amount that will be treated as annuity payment, whereby all interest (expect the additional 1%) will go to CPF LIFE Fund and not to your retirement account.

Those that sign up with only $20000 in the RA will stand to gain the most.

The PEOPLE DECIDED LONG BACK!

The proof is in the results of the last many elections.

Which policies did the people , highly educated paper-qualification-wise,
officially rejected, IF ANY?

I disagree with this title.

Why? Because singaporeans ALREADY Decided.

Else, it could not have been implemented it already is.

Its really the people.

Very good points.

Did you send this letter to CPF Board or Straits Time for answers.

Hopefully CPF will respond.

the 1% (extra) will be taken away the year after next and will not be available for all the other years.

Honestly, how much do you think the 80 years in order to benefit from CPF life?

Let’s not forget that it is not really possible to compare CPF life with the old scheme because the payment under CPF life can increase or decrease or halt. The old scheme doesn’t allow that.