Personal Finance
A Potential Rule of Thumb to Estimate CPF LIFE Standard Income with Our 65-Year-Old CPF RA Capital.
By Investment Moats  •  March 24, 2024
In the past month, as part of the CPF policy changes, I have been making some changes to incorporate the new policy changes but also looking at whether some improvements can be made to our internal CPF Projector. The most challenging part is to estimate the CPF LIFE Standard income that we may get given a certain amount of money we successfully accumulated in our CPF LIFE. We all had to rely on the CPF LIFE Estimator to see the projected income. The estimator only works for those who are turning 55 years old recently, and if we are much younger, the estimator doesn’t work. I decide to tabulate for a 55 and 56-year-old, given a different sum in their CPF RA at 65, what is the income recommended. We take the CPF LIFE Standard income paid out at 65 (y-axis) and plot that against the capital in CPF RA accumulated at 65, we get a chart like this:...
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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