I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com



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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Thursday 26 December 2019

I am on Retirement Sum Scheme (RSS) (4)


Read? I am on Retirement Sum Scheme (RSS) (3)

 So based from CPF official reply ...
We refer to your enquiry of 20 December 2019.

 We'd like to clarify that your payout will be calculated based on your current Retirement Account savings, to last you up to 20 years from your payout eligibility age (i.e. 65), with a base interest of 4% a year.

 The extra interest paid by the Government (up to 2% per year) on your Retirement Account savings will be used to extend your payouts beyond 20 years, capped at your age of 90.

 Members who are concerned about the risk of outliving their savings can consider joining CPF LIFE before age 80. This will eliminate longevity risk as they will receive CPF LIFE payouts for as long as they live.

 (1) your payout will be calculated based on your current Retirement Account savings, to last you up to 20 years from your payout eligibility age (i.e. 65), with a base interest of 4% a year.

 Uncle8888's monthly payout from 65 to 85 is estimated to be $1,180 




















The extended monthly payout from 86 to 90 is calculated based on 

the extra interest paid by the Government (up to 2% per year) on your Retirement Account savings will be used to extend your payouts beyond 20 years, capped at your age of 90.


will be $644 i.e. drop of 45%!!! LOL!







Posted by Createwealth8888 at 19:59
Labels:

3 comments:

  1. Singapore Man of Leisure26 December 2019 at 22:16:00 GMT+8

    CW,

    The precision in 2 decimal places is easy to calculate.

    The diffculty is "forecasting" whether you'll go sell salted duck eggs AFTER or BEFORE age 90....


    If we lucky like Dr Mahatir, then switching to CPF Life would make sense. Get others to "subsidise" us!

    But if we believe we'll go before age 90, then sticking with RSS would be better as my money is my money ;)


    CPF Life is taking some bricks from the East wall to patch the West wall.

    Question is how to know whether we are East wall or West wall right here, right now!?


    Who knew retirement planning has turned into a speculation?

    See? We are all speculators in the end ;)







    ReplyDelete
    Replies
    1. Createwealth888826 December 2019 at 22:35:00 GMT+8

      How many RSS speculators out there?

      Any one knows the % of RSS have switched to CPF Life as speculators?

      Delete
  2. edragon27 December 2019 at 08:50:00 GMT+8

    Yes, even your children is a senior citizen or almost.

    ReplyDelete

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