Can You Live On Just CPF Retirement Sum Scheme In Singapore?

Singapore's Minimum Sum Scheme (MSS) is now renamed to Retirement Sum Scheme (RSS). As of 2017, the Full Retirement Sum (FRS) to be set aside in your Retirement Account (Comprising of the monies in your OA, SA & some property pledging) when you turn 55 is $166,000. This amount is projected to increase by around 3% to $181,000 by 2020. No updates on the amount after that year.

So what happens after setting aside your money for the Retirement Account (RA) at age 55? Well, for some lucky few, you will be getting a lump sum in excess of the RSS ($166,000 as at 2017), whilst for others, all you can get is S$5000, because your retirement sum (RS) amount has not been reached. Something to note is that you can only pledge* half your house for the full retirement sum (eg. if the FRS is $166,000, you can only pledge $83,000); the remainder must come from your SA and OA (from what we understand, they will "wipe out" the SA first to form your RA, before using your OA). As to how the pledging of property works, you can refer to this author's write up.

The money in your RA will then be paid out to you in monthly instalments through CPF Life (please see CPF website for details on matters concerning CPF Life), when you reach your retirement age of 65. (see the table below). For the records, if one does not fulfill the RS at age 55, it just means that the monthly payouts on reaching 65** will be lesser. We're no experts on CPF matters, but you can actually search on the internet or the CPF site to find useful tools like this payout projector when you reach the retirement age of 65. The table below shows you the approximate payouts :

^*Payout figures are estimates, based on the CPF LIFE Standard Plan and computed as of 2017

CPF Life Standard provides a higher monthly payout than LIFE Basic Plan, but leaves a lower bequest for your beneficiaries.
CPF Life Basic provides a lower monthly payout than LIFE Standard Plan, but leaves a higher bequest for your beneficiaries.

So now that you know approximately how much you are going to get from your CPF monies on retirement, do you think it is enough to live out your retirement on that monthly amount and have you made plans to increase this amount according to your current lifestyle?

Even if you claim to be cutting down on your expenses upon retirement; with inflation factored in, is your CPF Retirement Sum sufficient for you? Can you continue to live on the Minimum Sum Scheme or Retirement Sum Scheme?

Another alternative is by doing small top ups through retirement plans from Tokio Marine to complement your CPF Life payouts and be financially ready when you enter into the Silver Generation! Remember the earlier you start, the less your monthly commitment for your policy and the more your payouts.

Contact us if you want to find out more about Tokio Marine Life Singapore's Retirement policies!

*Pledging of property does not mean the value of your home, but the amount which you have already PAID for your home and your promise to return this loan from CPF plus interest upon selling of your property back into the RA.

**As at time of this writing, retirement age or the age of monthly payout of CPF Life instalments is still at age 65. (going up to age 67 very soon)

Legend:
OA : Ordinary Account
SA : Special Account
RA : Retirement Account
RS : Retirement Sum
RSS : Retirement Sum Scheme
MSS : Minimum Sum Scheme

FRS : Full Retirement Sum
BRS : Basic Retirement Sum

Tokio Marine Withdraws Products

In case you have not heard of the news: Tokio Marine Life Insurance Singapore (TMLS) has decided to withdraw a few of their products with effect from 18th May 2012. They are :

1. TM Peace of Mind (MoneyBack)

2. TM Mortgage Protection (Single Premium-Single Life)

3. TM Mortgage Protection (Single Premium-Joint Life)

4. TM Mortgage Protection (Single Premium-Dread Disease)

Customized Birthday Cards To Send Out

Having been in the insurance industry for so many years, a passion which I used to have before I became an insurance agent was to write my heartfelt thoughts and appreciation to my friends, clients and loved ones. However, as my clientele base grew over the years, sending out birthday and festive season cards became somewhat like a chore.

Not till of late, did I discover an impressive way to send out customized birthday cards through this online automated card system. The beauty of the system is that it is dummy-proof and more importantly, it produces good quality cards at prices lower than those you get from the shelves. You can even add customized photos and handwritten messages, so that it will not seem "commercial-like". For those of you who are in the service industry and want to touch base with your clients, try the system out as well, since you can even earn a passive income from it!

So whether you are a birthday card sender or recipient, sendout-card.com has something for you!

Tokio Marine Life Singapore Branding Campaign

As we enter into the early hours of 12 Dec 2011, I just want to be the 1st to announce that Tokio Marine Life Singapore (TMLS) is starting their BRANDING campaign today!

Why? Simply, right up till today (or shall I say yesterday), most of the public does not know that TMLS has acquired Asia Life a couple of years back and is already one of the growing Life Insurance companies in Singapore. Since TMLS has been somewhat living in the shadows of its parent firm, Tokio Marine Group; many individual still assumes that the company does marine and general insurance only (most likely due to their name).

So today marks the day which Singapore will know Tokio Marine Life Singapore (TMLS) is not only in the life insurance business, but they market employee benefits (group insurance) for companies as well! So look out for their branding campaign running throughout the next 12 weeks on CNA and Channel 5 TV Commercials, MRT plying the NS and EW lines, taxi billboards and on the 15th December, TMLS will be shown for the entire run of the movie screening schedule of the blockbuster hit "Mission Impossible 4" @ Golden Village and Cathay Cinemas!

Maybe with all that hype and more recognitions to come, you might want to join us to understand what makes the company ticks and grow so quickly in this highly competitive arena of life insurance business! Feel free to find out more about us and even to start a career with us!

Launch of TM Legacy VIP

1 December 2011 marks a special day for Tokio Marine Life Singapore as it's the launch of their long awaited TM Legacy VIP!

TM Legacy VIP main features are :

• Permanent high insurance cover for Family Financial Security
• Immediate liquidity with a high cash value from day 1
• Further asset accumulation through growth in your cash value
• Equitable and positive estate distribution solution

Tokio Marine Life Insurance Singapore has also added the following features to make it more appealing to customers who used to get universal life plans as solutions : You can buy this policy for kids as young as age 1 year old Policy is dominated in S$, unlike TMLS's competitors marketing Universal Life policies, which are normally transacted in US$ TM Legacy VIP has Lifetime cover when compared against TMLS rivals, who normally markets term plans. Policy loans up to 80% of cash value from day 1. The policy pays out the higher of Guaranteed Death Benefit or Sum Assured + Bonuses (before age 100)

Who should buy? Business Owners. People who likes single premium products (calculated liability). Those who wants high coverage from day 1 till age 100 and long period of guaranteed cash values. Asset Owners who wants collateral for financial institutions. Individuals who wants to leave behind charitable legacy. Parents who wants to provide for estate equalization (ie: all their children will be left with some form of asset upon the demise of the parents, in the form of a business, property or simply cash). Grandparents who wants to leave a legacy for their grandchildren. For those who want S$ dominated policy Companies who need Keyman Insurance