There are going to be some changes to the CPF and I’m wondering… how should we respond.
I was planning to go full Minimum Sum and use that as a my “pension” payouts.
Then the panel recommended 3 retirement sums.
I was thinking of going “enhanced” then – 150% of the minimum sum.
BUT, as a male, and with my family history, and my health/medical history, I may not live long enough to enjoy my pension.
So… I should go Half (Basic) and PL (9 years younger than me) should go Enhanced!
When I start drawing down on CPF Life, I will only get $700, but PL would likely still be working and should be able to support Z (and me).
9 years later, PL will get about $1900 in CPF Life payouts. If I’m still alive, we would have about $2600 plus whatever else we have in savings. $2600 should be enough for 2.
And if I’m dead, well, $1900 would be comfortable for 1.
Oh I need to remind myself. If the Mortgage rate is lower than the CPF rate, I should just keep paying the mortgage. Only if the mortgage interest exceeds the CPF OA interest rate, then I should pay off the mortgage. Assuming I have enough in the OA to pay off the mortgage.