Why CPF Life Is Relevant To You

 

There was a time when the young were the 'pensions' of the old. Families were large and six or seven children might share the burden of supporting their aged parents.

Today's smaller families with one or two children means that parents can count less on their children for financial support in old age.

And with growing life expectancy, the scenario where children have to look after both their elderly parents and grandparents in addition to raising their own families is not an impossible one.

Therefore the need to ensure that one has adequate savings in your CPF as far as possible for one's retirement becomes more urgent. This is especially so for those who have little other savings of their own besides CPF.

A research carried out in the UK by retirement specialists MGM Advantage shows that 4 out of 5 elderly workers (age 55 - 64) underestimate their average lifespan.

Similarly a research by the Society of Actuaries in the US shows that more than half of people over age 45 are underestimating how long they will live.

In Singapore, if we go by sentiments expressed in online comments, we can also come to the conclusion that many underestimate how long they will live because the many who call for their CPF to be returned to them at 55 believe that they are going to die before reaching the retirement age of 65.

Underestimating how long one will live has huge financial consequences because it means that one's provisions for retirement will be inadequate and one runs the risk of outliving your retirement savings.

There is a way to avoid this risk. CPF Life.

CPF Life will ensure you of
(1) a monthly payout
(2) for as long as you live.

With CPF Life, you don't have to worry about outliving your savings. And if you do not have any other savings other than CPF, then CPF Life becomes even more important to you.

Ref:
http://bit.ly/1Ly609H
http://bit.ly/1EqWqQ3