Sunday, April 3, 2016

How CPF Life shortchange Singaporeans

Using my favorite $90k minimum sum example

CPF Life is really jin lugi

Under the minimum sum scheme over 20 years you would gotten $192000

Under the default CPF Life scheme
over 20 years you get $187200, but anytime you die after 76, you beneficiary does not get a single cent as bequest, but under the minimum sum scheme your beneficiary get back every single cent of the residue value

under the basic CPF Life scheme
over 20 years you only get $168000

according to singstats 2013 data
the current life expectancy of male is 80 years
so under CPF Life default scheme you already lugi 5 years of drawdown 

by paying you $700 a month

the CPF Life common pool actually gains 3 years worth of residue funds as the life expectancy of women is currently 84.6 years

CPF Life can don't pay you a single cent if it is insolvent

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