Home  My Blog CPF Life 4 (Inflation)
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Written by Wilfred Ling
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Friday, 15 February 2008 |
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All aged 50 and below will enter the CPF Life scheme because it is compulsory. The examples given was that at $67,000 cash from RA, that will yield roughly $600 monthly income from age 65. Exact amount depends on ROI and gender.
Let's say you are age 50 now, your first earliest possible payout is age 65. That will be 15 years later. $600 today and $600 15 years from now is not the same. $600 15 years later is equivalent to $288 present value assuming 5%pa inflation. Maths: 600/(1+5%)^15= $288. Let's assume that a full RA can be achieve (say 2 x 67k = $134,000). That will yield the present value of $576 of monthly income. Aiyo, how to live with such small amount? Don't get me wrong, the govt's idea is great. But I hope Singaporeans will not perceive that the annuity scheme will solve their retirement woes because it will not. |
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