3 reasons why cpf life should not be your only retirement plan
3 reasons why CPF life should not be your only retirement plan
Cpf life is good. In a comparison of return for an annuity, CPF Life still stands out in the current market but there is a maximum amount you can put in.
3 reasons why CPF LIFE should not be your only retirement plan but forming part of your retirement planning.
1) There is no flexibility in CPF LIFE.
Once you put in or top up, cannot withdraw. It becomes one-way street. Apart from that, you cannot manage the money. You cannot choose if you want more money at the start of your retirement and lesser as you age. Most case, most of my clients want to enjoy more in the initial phase of their retirement eg: travel to exotic countries, bring their family to go for long holidays. Living the life they truly desire.
2) Does not hedge against inflation
Just have to accept it. It does not hedge against inflation for the basic and standard plan of CPF life. Recently CPF LIFE came out with a new plan called the escalating plan which is to hedge against the inflation. It increases by 2% every year. The downside is you have to start with a lower payout. If you do not want to compromise which most of my client do not want, you would have something to complement your current payout.
3) Little bequests for loved ones
It doesn’t leave behind a lot of bequests especially when you lived till 80 and beyond. If legacy planning is something of importance to you, then you have to build beyond this.
Make use of CPF life to be your foundation. Then you build on it. Alot time, as working professionals and business owners like yourself, it is really hard to really sit down and think through the life beyond retirement. This is what is commonly hear from my clients who are also facing the problem as you are currently. And you might not know who is able to really able to help and advise you on your current situation and how to get to where you truly want to be in the next 10-20 years.
A retirement blueprint will be the key to your answer. This is not your policy summary but more on a detailed breakdown of where you are currently, where you want to be and how to plan for retirement in Singapore in a systemic way.
If you seriously want to transform your financial future, hit me up through the link below and together we will strategize on how we can get there systemically.