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Just wondering if you have given any thoughts on when you will start your CPF LIFE payout? Do you mind blogging about it?
I have been building up my SRS savings. By the time I hit the Official Retirement age of 62 (for now), if I start withdrawing my SRS at 62 to 72, the annual sum will be equivalent to CPF LIFE.
Now the question is, should I start my CPF LIFE payout at 65 or delay till 70 to gain more interest and thus a slightly higher monthly payout?
According to the picture you posted on 17th July 2017, at FRS: age 65 = $1,380 mthly. At age 70 = $1,840.
What will you do? A bird in hand is better than a slightly bigger bird in the bush?
AK:
With CPF Life, it depends on whether I need the money. At 65, if I need the money, then, I will start drawing from the annuity.
If I don't need the money, I will leave it to grow, earning a risk free and, hopefully, meaningful interest rate by then.
With SRS money, once I start the withdrawal process, I would have to empty the account within 10 years unless I use the money to buy an annuity. I have some investments in my SRS account and I would probably have to liquidate these.
So, I would probably consider withdrawing money from my SRS account in a bull market sometime after I turn 62.
So, depending on the situation when the time comes, I could tap either the SRS or CPF Life first or not at all.
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Liu Jiayi says:
From Jul 2015, SRS members will be able to apply to their SRS operators to withdraw an SRS investment by transferring the investment out of their SRS accounts (e.g. into their personal Central Depository (CDP) account), without having to liquidate their SRS investments.
(Please see comments section below for the full comment.)
Related posts:
1. CPF Life Payout Estimator.
2. CPF Mobile Service Centre.
3. Lifelong income with SRS.
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