Crystal Ball 4.0 for Longevity, U sure live 94 yo?

Which should I choose for my CPFLife; Basic, Standard or Escalating Plan?

I wouldnt agree that Life Escalating or Std Plan makes much better sense.  

1. Longevity means sure live beyond 94. Only when you sure able to live beyond 94 (+ 1 month) old, you gain.  Can anyone sure guarantee to live beyond 94?

Escalating Plan breakeven with Standard Plan total payout at age 94. Area under the Payout-Tenure curve. I vaguely remembered counting the area under the curve during CPF Roadshow.

2.  Std Plan vs Basic Plan total payout at Std Lifetime Bequest at 85 yo in SG, difference sum of:

~$200 p.m x 12 mth x (84-65) = $45,000. (Should be less than $200 p.m. payout difference; but no matter for more buffer).

If you can save this amount, and drawdown, don't even need to consider Std Plan.  

And with $45,000 topup in RA @4%, you earn perpetual $150 p.m. for lifetime. (=$45,000 x 0.04/12).

In addition, you save your $45,000 more for bequest.   Also Basic Plan bequest is higher than Std Plan.


------

In summary,

1.  Unless you sure live beyond 94yo, think one should avoid Escalating Plan.  No one has crystal ball V4.0.

[See my earlier blog posting.  Reality checklist if you are a 94+yo chance.]

2.  Build up a k.s. amount of $45,000.  Topup into RA to earn 4% perpetually [$150 p.m.]  Don't even bother with Std Plan.


Further 5 key summary on longevity:

1.  You are a woman

2. Your parents (n even grandparents) still alive or long live beyond 94yo.

3. You have no 3 health Fiends.  Diabetes, Cholesterol, HPB.

4. No major surgery before.

5. Your resting heartbeat is below 60s.

Wait.  I no Doctor.  Even trained doctors have no better crystal ball

Comments

  1. Mr Ferrari6 February 2023 at 07:04

    Someone asked "if I forgot to choose my plan, which plan would CPF place be?". Reply: "Std Plan". "Oops. Then I choose Basic Plan for retirement". Why lah?

    ReplyDelete

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