Asked on 01 Aug 2019
Aunt just turned 65, is no longer working and wishes to start her CPF Payout. She is currently on the old RSS scheme and would get about $900/month for 25 years. CPF Staff informed her that she is eligible to switch to CPF Life where she will get about $700/month for lifetime. Do you think she should switch?
Tough questions, which no one can answer for you.
But generally, if you are worried about outliving, CPF Life is better because there is no risk of outliving your monies after age 91.
RSS has the risk of you outliving your savings by age 91.
if your focus is on gains, then it's debatable and no one has a good answer. the best is to look at Kyith from investmentmoat article on IRR for CPF LIFE.