There’s been a lot of discussion about the CPF retirement payouts from age 65.
Here’s some facts you need to know:
1) Although there’s speculations on the change in payout age to 70, there is actually no change in the eligibility age, which is 65 years old.
2) CPF however only starts your payout after they receive your instructions. It is NOT AUTOMATIC at age 65.
3) CPF is saying that there are benefits to deferring your payout till 70. An extra interest of 1% for the first 60K and additional extra interest of 1% for the first 30k.
4) You can start your payout by completing a letter sent by CPF, applying online through CPF website or visiting one of the CPF centres islandwide.
However if you are like me, who is not counting on CPF for retirement ( Honestly, how many of us can accumulate $171k of full CPF retirement sum at the age of 55; And we need to keep this amount for 10 years until the payout starts in 65) Tapping on other sources will be a better way.
I am counting on:
1) Acquiring Properties ( I already have my first private property purchased in 2013)
2) Building Businesses ( Building FeetHaven was one reason for accumulating assets)
3) General Investment in shares
4) Retirement Saving Plans
Recently a few of my friends & myself bought AIA retirement saver plan ( obviously because I am now with AIA). AIA Retirement Saver (II) is a savings plan that provides you with a guaranteed monthly income and a lump sum payout when you retire. Here’s the benefits that come with it:
A) ✅ Guaranteed monthly retirement income
With your monthly retirement income stream, you can enjoy your retirement the way you want to, without needing to depend on anyone. This guaranteed stream of income is paid over 15 years, supplementing your CPF to give you greater financial freedom
B)✅ Capital guaranteed1
You will get back every dollar that you contributed at your selected retirement age, so rest easy and enjoy your retirement!
C) ✅Enjoy potential monthly dividends
You will enjoy potential monthly dividends starting from your selected retirement age, which will help to enhance your retirement income stream and cushion the impact of inflation.
D)✅Attractive returns on your plan
Enjoy an attractive potential yield of up to 4.69% upon maturity as you plan for your future.
E)✅Receive a one-time terminal (non-guaranteed) dividend. An extra bonus to add to your retirement funds or a small token for your family upon maturity, death or surrender of policy.
Case in point, a Friend is investing $66300 (payable in 10 years), and will receive a monthly Guaranteed Monthly retirement Income of $500 from the age of 65 to 80. By the end of 80th year, he would be receiving a terminal dividend of $42k and total benefit payout of $161, amounting to approximately $203k.
Invest -) $66300
Payout -) $203k
Isn’t that a better option to retire ? WHATSAPP ME at +6596566947 if you like to know more.