CPF Life was recently introduced to Singaporeans and will be launched in September this year. Basically, it is an annuity with a component for you to bequest certain amounts to your beneficiaries. From a myriad of 12 types of annuities offered by CPF board down to 4 annuities. It is to make the choice of soon to be retired Singaporeans easier.
CPF members turning age 55 from 2013, with at least $40,000 savings in their Retirement Account, will be automatically enrolled into the scheme. Members who have less than $40,000 can opt-in from 55, if they wish to do so.
As this is a new scheme being introduced not the full four plans would be offered. It will greatly depend on your age when you join the scheme.
When buying annuities, one have to take note that because it is a fixed amount per month, your purchasing power would greatly depend on the inflation rate. If inflation rate is high, your purchasing power would be greatly reduced. This is exacerbated by the fact that
For more information on CPF Life, please click here.
For more information on buying annuities, please click here.
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