Karen Tang, CFP®: Certified Financial Planner in Singapore
Which CPF Life plan best suits your needs?
The Straits Times report “Is the New CPF LIFE Plan Ideal For You” dated 22 October 2017 explored the payouts of the different plans and how they compare based on different needs.
Each of the 3 different CPF Life plans – Basic, Standard, Escalating – provides a different bequest amount (for your beneficiaries) and payout. When selecting the plan that is most appropriate for yourself, you will need to consider your overall financial portfolio. This includes your:
- Liquidity (cash or cash equivalent)
- Value of endowment plans and their maturity dates
- Value of investments
- Amount of passive income & sources
- Provision for dependents, if any
While CPF is an integral part of retirement planning, Singaporeans should also pro-actively plan for other sources of retirement income so that they can achieve their desired retirement lifestyle.
Your retirement plan requires much thought and an unwavering commitment to see it through. Seeking the advice and expertise of a holistic financial planner will increase your chances of being able to retire comfortably and worry-free.