Retirement Plans II

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.

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