CPF LIFE - Escalating plan

CPF Board appears to encourage standard plans. But online bloggers / independent advisors appears to prefer Basic plan - based on amount contributed / bequest (computed).

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See: https://www.youtube.com/watch?v=rsfPpJUHwkE (Providend) - I think he did a good analysis. Depends on what one believes in + one's needs/wants and any alternate sources of retirement income.

I guess if you have some cash savings after you retire, that can be used to fund the earlier stages, and with escalating, you can get the same amt at the "later stages" (assuming you deplete your savings).

Escalating plan is for those who intend no bequest. If you do not want to leave anything behind for anyone you can consider.

Just note that Escalating plan payouts start about 20% lower than Standard plan. 2% yearly increment to keep pace with inflation in Jan 2018 (plan launched) may be ok but probably insufficient in today's context.

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It is the same pool of money that both plans draw down from (AP at start of draw down + Interest earned in lifelong income fund)

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The incremental payouts have to come from somewhere, and are not additional to the other plans. In other words, Escalating is a variation of Standard plan.

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*Payouts in graphic based on Male, 55, BRS 2023