The email address in "Contact AK: Ads and more" above will vanish from November 2018.

PRIVACY POLICY

FAKE ASSI AK71 IN HWZ.

Featured blog.

1M50 CPF millionaire in 2021!

Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...

Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.

Archives

"E-book" by AK

Second "e-book".

Another free "e-book".

4th free "e-book".

Pageviews since Dec'09

34,342,741

Financially free and Facebook free!

Recent Comments

FakeZeroCool commented on 1q 2025 passive income ocbc and alibaba: “Hi AK, thank you for sharing your thoughts. I am new here,…”
Jin_San commented on 1q 2025 passive income ocbc and alibaba: “Dear AK, I enjoyed reading your blogs and YouTube series,…”
Hongjin commented on 1q 2025 passive income ocbc and alibaba: “How do you encourage retail investors who are not equipped…”
mitchell commented on 1q 2025 passive income ocbc and alibaba: “Clct financials getting worse and worse every single year.…”
LZ commented on 1q 2025 passive income ocbc and alibaba: “What DCF do u usually used for Alibaba, AK? i'm using…”
TH commented on srs portfolio in 2024 what did i do: “Hi AK, I have hit the max tax relief of $80k. Does it still…”
HappiSnoey commented on 1q 2025 passive income ocbc and alibaba: “Hi AK, hang in there! It will all pass… ”
fisher commented on 1q 2025 passive income ocbc and alibaba: “Take good care of yourself AK and look forward to happier…”
MPC commented on 1q 2025 passive income ocbc and alibaba: “Hi AK,Previously you mentioned that you may buy ireit at…”
Ss commented on 1q 2025 passive income ocbc and alibaba: “Dear Ak, Thank you for the post, truly appreciate it. Your…”
tzl commented on 1q 2025 passive income ocbc and alibaba: “Made a shopping list waiting to buy various stocks! Pls…”
Shaun commented on sold alibaba for 51 gain: “Hi Ak, I understand you are bullish on Wilmar given how…”
Shaun commented on sold alibaba for 51 gain: “Hi AKI understand you are bullish on Wilmar given how…”
Shaun commented on sold alibaba for 51 gain: “Hi AKI understand you are bullish on Wilmar given how…”
SN commented on sold alibaba for 51 gain: “Hi AK, with ST Engineering up 48% YTD, will you consider…”
Yue commented on 12m53 plan for cpf in 2025: “Hi AK, can I know the reason why you don't transfer all…”

ASSI's Guest bloggers

Understand CPF LIFE and make it work for us. (Size of CPF LIFE payouts depends on a few things.)

Sunday, December 29, 2019

I shared in a recent blog on the possibility of withdrawing my CPF savings from age 55.

I also shared that my plan is really to let my CPF savings grow and to enjoy a monthly income from CPF LIFE from age 65.

See:
Withdrawing CPF savings: How much and how?
(Maximising CPF-SA savings and returns?)


CPF LIFE is an annuity.

What is an annuity?

"An annuity is a series of payments made at equal intervals."
Source: Wikipedia.

"Annuity holders cannot outlive their income stream, which hedges longevity risk."
Source: Investopedia.






So, the money we put in our Retirement Account (RA) which will be created for us at age 55 is used to join CPF LIFE.

CPF LIFE the annuity will pay us a monthly income from age 65 at the earliest for as long as we live.

1. How much we will receive monthly from CPF LIFE will partially depend on how much money we put in our RA at age 55.

Obviously, if we put in more money, we will be able to enjoy a larger monthly income compared to someone who puts in less money.

Think Full Retirement Sum (FRS) instead of Basic Retirement Sum (BRS), for example.








2. How much we will receive monthly from CPF LIFE will also partially depend on when we want to start receiving this stream of lifelong monthly income.

The earliest we can start receiving a monthly income from CPF LIFE is at age 65.

However, we can choose to start the payouts later in life, giving more time for the annuity to accumulate funds.

We can also choose to do nothing and in such an instance, CPF LIFE will start paying us a monthly income when we turn 70.

It follows that CPF LIFE, having five more years to accumulate funds, would be able to pay a higher monthly income to us then from age 70.






3. How much we will receive monthly from CPF LIFE will also depend on the CPF LIFE plan we choose to go with.

We will only have to choose which CPF LIFE plan we want a few months before we start receiving the monthly payout.

Although I already know which CPF LIFE plan I want, things could change later on in life, of course.

I have blogged about the different CPF LIFE plans before and if you are interested in finding out more, go to the related posts at the end of this blog.





For most regular Singaporeans, an annuity is probably the best way to help ensure retirement funding adequacy. 

We should understand what CPF LIFE can do for us and we should make it work for us.


It is really that simple.

If AK can do it, so can you!

Believe it!






Related posts:
1. CPF LIFE Escalating Plan.
2. Which CPF LIFE plan is for me?
3. CPF LIFE payout estimator.

2 comments:

Your Ka-ki! said...

Hi AK

You definitely worry too much and keeps me worry as well. I wish you a good 2020 ahead with more huat and dividends increase so that will keep the BP level down a bit.

AK71 said...

Hi YKK,

The last time I checked, my blood pressure was OK.

Maybe, it is time for another check. ;)

Thank you for the well wishes.

Wishing you the best in 2020 too. :)


Monthly Popular Blog Posts

All time ASSI most popular!

 
 
Bloggy Award