CPF Life Standard Plan pays $731 monthly?

According to the Straits Times news report “Choosing the right CPF Life plan” (Aug 23) – the monthly payout under the CPF Life Standard Plan Basic Retirement Sum of $80,500 from age 65 is $695 – $767 (average of $731).

Since the CPF interest rates from age 55 are 6% on the first $30,000, 5% on the next $30,000 and 4% on the amount above $60,000 – the average interest rate is about 5% on the Basic Retirement Sum of $80,500.

Live beyond 93 to be better off?

On this basis, the money would only run out after 28 years by withdrawing $731 monthly.

So, does it mean that one has to live beyond 93 years old in order to be better off?

How many will live beyond 93 years old?

Very low bequests?

The bequest at age 65, 75 and 85 is $81,855 – $81,878, $766 – $808 and 0 respectively.

Why is the bequest so low, when the majority who may have died before age 93 – may more than offset the payouts to those who live beyond 93?

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