Hi Anon,
For CPF Life, there are three plans for you to choose from, Basic, Standard/Escalating. You will "enter" CPF Life scheme by paying the CPF LIFE premium at age 65: 20% your RA will deducted as the premium for the basic plan, and 100% of your RA for the Standard/Escalating Plan.
Singstat has a really useful calculator here: https://www.singstat.gov.sg/find-data/search-by... The average Singaporean man dies at 81 years old. Statistics show that the chance is at least 40% to pass away by 81, around 50% to die before 85, and about 70% at 90. So, what happens when you "up-lorry"? Well, your RA amount you put in, after deducting the amount pay outs will be returned to your beneficiaries. So you will never get anything "more" than what you have put in, unless you live beyond a certain age. Using an example to illustrate from the longevity point of view: Xiao Ming have been staying active by clocking in your 10,000 steps daily and have been eating healthy.
If Xiao Ming have opted for the Basic plan, when he turn 92, he will "break-even" the amount he had in his RA, and continue to collect his payouts from CPF Life until he passes away.
On the other hand, if Xiao Ming opted for Standard/Escalating plan when you turn 89 he will "break-even" the amount he had in his RA, and continue to collect his payouts from CPF Life until he passes away.
From a payout point of view, using another example: Da Ming, Xiao Min's twin brother has been leading a sedentary lifestyle and enjoys eating unhealthily. He passes away before he can reach the break-even point of the respective plans.
If Da Ming have opted for the Basic plan, The bequest he left to his beneficiaries = RA sum minus (10-20% x the number of years he recieves payout
On the other hand, if Da Ming had opted for Standard/Escalating plan, there will be very little bequest left for his beneficaries, as the premium will be refunded to his beneficaries without any interest.
Hi Anon,
For CPF Life, there are three plans for you to choose from, Basic, Standard/Escalating. You will "enter" CPF Life scheme by paying the CPF LIFE premium at age 65: 20% your RA will deducted as the premium for the basic plan, and 100% of your RA for the Standard/Escalating Plan.
Singstat has a really useful calculator here: https://www.singstat.gov.sg/find-data/search-by... The average Singaporean man dies at 81 years old. Statistics show that the chance is at least 40% to pass away by 81, around 50% to die before 85, and about 70% at 90. So, what happens when you "up-lorry"? Well, your RA amount you put in, after deducting the amount pay outs will be returned to your beneficiaries. So you will never get anything "more" than what you have put in, unless you live beyond a certain age. Using an example to illustrate from the longevity point of view: Xiao Ming have been staying active by clocking in your 10,000 steps daily and have been eating healthy.
If Xiao Ming have opted for the Basic plan, when he turn 92, he will "break-even" the amount he had in his RA, and continue to collect his payouts from CPF Life until he passes away.
On the other hand, if Xiao Ming opted for Standard/Escalating plan when you turn 89 he will "break-even" the amount he had in his RA, and continue to collect his payouts from CPF Life until he passes away.
From a payout point of view, using another example: Da Ming, Xiao Min's twin brother has been leading a sedentary lifestyle and enjoys eating unhealthily. He passes away before he can reach the break-even point of the respective plans.
If Da Ming have opted for the Basic plan, The bequest he left to his beneficiaries = RA sum minus (10-20% x the number of years he recieves payout
On the other hand, if Da Ming had opted for Standard/Escalating plan, there will be very little bequest left for his beneficaries, as the premium will be refunded to his beneficaries without any interest.