My strategy to beat Delayed CPFLife Payout at age 70

 The strategy:


1. Still Withdraw CPFLife payout at age 65.

2. For me, I would select Basic Plan instead of Std Plan or Escalating Plan.  Std Plan or Escalating Plan bequest becomes zero around age 80/82.

But Basic Plan payout bequest becomes zero around age 92. 

3. Strategy 1 (just by-the-way sharing), difference between Std Plan and Basic Plan payout from age 65 to 85 is ~$180 p.m. x 12 × (86 - 65) = $43k.

Choose Basic Plan.  Just build up a sum equals to $43k before retirement, you already would have enjoyed Std Plan Payout.  In addition, re-invest this $43k, you earn even more.

~~~

Strategy #2 (which you requested):

4. Withdraw CPFLife payout at age 65. Then, (depend on how deep your pocket): 

option 1: On Jan or any month after age 65, transfer back your $$ into RA or even VC3AC & MA again.

This will have effect of delay your payout, and yet withdraw first.  This will earn you 4% interest.

Continue to do it from age 65 to 69/70, to match the effects of delayed Payout at age 70. 

Because you have self-topup as 4% interest back to your SA or RA, you actually will now enjoy better payout than those starting payout at age 70.

The "payout at age 65" vs "delayed payout to age 70" breakeven should earlier be age 84 (as I explained in the chart), now because of this delta topup from age 65 to 69/70, those who started delay-payout at age 70, will never catch up with you.

option 2: Nearing Dec after age 65, any money excess of your spending, you can then self-topup into your RA and/or SA (or MA.).  This is for those not so rich and yet want to beat the system.

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