CPF Life - difference between Standard and Basic Plans operationally ?
I understand that difference is that Basic will have lower payouts but leave more as bequeathments for next generation. But I am a bit blur on what is Annuity Premium and how/when it is deducted in the two options and how it is used to pay for the annuity payments.
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Hariz Arthur Maloy
24 Nov 2019
Independent Financial Advisor at Promiseland Independent
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https://www.cpf.gov.sg/members/FAQ/schemes/reti...
The answer is here. Basically, CPF would put money aside between 10-20% and start paying out from the deducted premium. When that money finishes, they will then deduct from the monies kept aside.
Simply, expect 10-20% less payout from standard plan, and stretch your bequest amount by 10 years from 81 to 91 where eventually it will still be 0.