facebookI m 72 yrs and my RSS is due to end in 4 yrs. I m undecide d if i shd consider topping with cash to receive payout of $2k a mth for 10 yrs. Joining CPF LIFEwd not benefit me at my age. Btw, i m lookin? - Seedly

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Anonymous

28 Sep 2020

Retirement

I m 72 yrs and my RSS is due to end in 4 yrs. I m undecide d if i shd consider topping with cash to receive payout of $2k a mth for 10 yrs. Joining CPF LIFEwd not benefit me at my age. Btw, i m lookin?

Discussion (5)

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The purpose of cpf life (vs rss) is primarily to ensure you don't outlive your money.

The more important questions that you should address is whether you are in good state of health and whether you might live to 88 and beyond.

As you already said, the rss will run out in 4 years.
You are already considering top up the rss with cash to cover for another 10 years. What if you are still in good health by then. Do you still have money to top up for another 10 years?

One of the things that's not mentioned is inflation. Its very hard to say whether 2k a month can still maintain your current lifestyle in 10 to 20 years. (this is why I am aiming for ers).

FYI - my considerations for advising my parents

One had just recovered from stage 3 cancer and prefers to remain on RSS. Given the 5 year survival rate is not high, I do not see an issue with the decision because outliving the money is not a risk.

My other parent only has high blood pressure for now. Probable still good otherwise. I think life expectancy may not defer too much from average, but possibly 85-90. Cpf life would be a better choice just to be sure if parent does live to 90. Otherwise it means us siblings have to work extra extra hard to maintain and provide for lifestyle for the years after rss runs out.

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Patricia Law

28 Sep 2020

Financial Services Consultant at AIA

Hi there,

Based on your age, you may want to look at Universal Life policies.

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