The report highlighted that with CPF's interest rate structure, CPF Life is able to provide an effective annuity rate of 7.1 per cent based on a $100,000 premium. "This compares favourably with life annuities in most markets," stated the report. The annuity rate was calculated based on the ratio of annual payout to premium paid, for a male member born in 1962, or is 55 this year, who receives payouts at age 65. PS: Payout is increasing at 2% every year. Read? How I Accumulate $1M In CPF OA!
Uncle8888 DIY Annuity with his CPF OA is able to provide an effective annuity rate of 6.6% till Dec 2038! Factoring 2.5% inflationary rate for annual escalating payouts from 2018 to 2038 (Age 81+) and can cover up to 85% of the highest historical annual expenses since 2002.
Last updated : 14 Sep 2020
I am 64 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 21 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2041 @ 85 yrs old.
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