What if CPF RA exceed Enhanced Retirement Sum (ERS) at age 55? If choose not to withdraw, how much CPF life can pay? Using 1M65 as an example, how much CPF life pays based on 1million balance at 65?
Curious about a scenario where CPF Enhanced Retirement Sum is achieved at 55 and RA balance achieve 1m by 65. CPF calculator only compute up to $500k RA balance I think.. Appreciate members' view here. Like to see if CPF should be the preferred place to rely on consistent CPF payouts for life.. Thank you!
I believe that the maximum you can top up your RA to at 55 is the year's prevailing ERS. After that, you'll continue to grow the RA monies via interest paid to that account, which, if you have ERS, should oustrip the rate of increase of the ERS.
The rest of your monies would then reside in SA/OA/MA, depending on your account balances. With the CPF SA shielding trick, you could easily end up with $500K across your SA and RA at 55 and that will be quite a good safety net. With CPF LIFE paying you from 65, and leaving money in SA to compound at 4%, you'll have 2 guaranteed sources of money when you retire, CPF LIFE plus interest/interest+principal withdrawals from your SA.
I personally am aiming to rely on CPF as the first layer of guaranteed income, but will definitely have more layers built on top of that.
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I do not think 1M65 will have an impact on the CPF Life Payout.
It is strictly based on the CPF Life Premium paid, gender, age, the CPF LIFE plan, CPF interest rates and mortality rates.
Having 1 Million in your CPF balance after creating RA account however does supplement your CPF Life Payout, as you are able to grow the balance CPF at decent interest.
Considering that you are age 55, opted for ERS of 271500 (current ERS), starting payout at 65, you will be able to receive $2,030 - $2,180 per month for Standard Plan based on a CPF Life premium of $404,300 by the time you reach 65.
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