Anonymous

21 Apr 2020

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I am turning 65 next year. I have not chosen my drawout plan (basic, standard, escalating). I currently have around 500k in my RA. Can I draw out about 3k a month or must I follow the 3 proposed govt plans?

I realised if I want the standard plan, its around 1.3-1.4k a month. Since my RA is very much above ERS, can I choose to drawdown lets say 3k per month? Or I die die must follow the 3 proposed govt plans? Thanks.

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Elijah Lee

21 Apr 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

You don't have to stick with the 3 proposed plans. You are allowed to increase your payouts by buying an additional CPF Life annuity. CPF Board will be better equipped to answer you on how much needs to be utilized for the CPF Life annuity in order to get your required payout. Since you have $500K in RA, you should easily get $2.6K-$2.7K/mth on the standard plan based on CPF website's estimator; $3K/mth is unfortunately a little out of reach.

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Hariz Arthur Maloy

21 Apr 2020

Independent Financial Advisor at Promiseland Independent

Hi Anon, I'd love to find out how you have 500k in RA though. But nonetheless, you're allowed to buy more CPF Life annuity above ERS after 65.

https://www.cpf.gov.sg/Members/Schemes/schemes/...

Click on this link and open the last tab under "Apply".

Just note that CPF Life draws down your entire capital to 0, so if you'd like to preserve that money, I would keep the amount above ERS inside the account.

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