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

What You Do Not Know About Eldershield in Singapore

Being old and elderly was something far away from my mind, when I started in the insurance

business 20 years ago, but lately, seeing more news articles on retirement and ageing with yours truly also slowly approaching the "Silver Generation", my family and I began to have our antennas up whenever the topic of age related matters popped up.

Lately, a close relative of ours started to have difficulty walking and he was 72. The first thing that came to my mind was Eldershield, as he displayed the criterias needed to submit a claim (for those who are not familiar with the workings of Eldershield, here's a link to read up about it and after reading, you will definitely feel it's insufficient).

However, what confused us was that his premium payments had ended when he was 65, so naturally we thought the cover

Retirement Planning With Cash or SRS

With the aging population in Singapore, the buzz word these days is probably Retirement. Tokio Marine Life Insurance Singapore from the Tokio Marine Group will probably be the one insurance company to help you address this need since they have been aggressively launching and promoting new retirement policies of late and here's the latest video just to help you better understand and plan for your retirement using your SRS or cash using one of their latest launch, TM Retirement (SP)! (For those who want to know what is SRS or how it can help you in your tax planning, visit this page)

So if you are someone who wants more money in your twilight years to complement your CPF monies, watch this retirement video and start calling us to find out more! [From 1 Jan 2016, please leave your CONTACT NUMBER in the "message" box, so we can verify that your interest is real and not for the sake of getting quotations only. (For quotes, you can call the insurers directly). Thanks for your understanding]

No Retirement is Secure till you have TM Retirement Secure

The Tokio Marine Group in Singapore has added another retirement product into its already

comprehensive range! This time the newly launched, TM Retirement Secure was introduced to Singapore on 08 January 2016 and is particularly suited for individuals looking for guaranteed  income for a fixed span of time; whilst having a short premium commitment period!

One can even add a Cancer Income Rider (details in upcoming post) or a Cancer Waiver Rider! Just to make sure that your retirement plans will not be hampered should an unforeseen event like Cancer is to strike and you need your lifestyle to continue as before.

Some of the features of TM Retirement Secure that is worth highlighting are as follows:

Maximising your SRS with an Endowment Plan

SRS (Supplementary Retirement Scheme) was once a household word when it was introduced and somehow now it has lost its pizazz. However, it is still a worthwhile consideration for your retirement and tax planning in Singapore

For people who are beginning to set aside money for their retirement plus tax planning and are not familiar with SRS, here're some examples:

                                              Another Example:

In a nutshell , the things you need to know if you are utilising your money for SRS are:

1. There will be annual savings in your income tax if you belong to the higher tax bracket.
2. Your SRS contribution can be used to buy Insurance policies which appreciates with time & get you more for retirement.
3. Upon withdrawal, only 50% is subject to tax & you can expect greater savings should you spread your withdrawals over a 10 years period.
4. The interest rate on balances in the Supplementary Retirement Scheme (SRS) Account which are not invested is currently approximately hovering at 0.05% p.a. (POSB 2012)
5. Moves you into lower tax bracket
6. SRS contributions must be made by 31st December each year
7. Singaporeans annual cap-$12,750, Foreigners annual cap-$29,750 (as they do not have CPF)

So that leads us to the reason why this post is written. Tokio Marine has launched a single premium endowment policy called TM Retirement@63 on 8 January 2015. It basically provides 10 annual Cash Benefits starting from policy anniversary at which the assured reaches age 63 on next birthday (which is also the payout date). Once the client receives all 10 annual payouts, the policy then terminates.
The nice thing about the plan is that it is also available in cash mode & is a guaranteed acceptance policy. As with most insurance, there is also some form of death benefit unlike other SRS investments which basically returns you whatever is left in the account at the point of death (which at times can mean a loss in capital).

If you are still wondering which insurance plan is suitable for SRS, then look no further and contact this FPC for more details about TM Retirement@63 !

TM Infinite VIP - Continuous Retirement Annuity for Life

Whether it is an annuity that you are looking for or a legacy you wish to leave behind for your TM Infinite VIP via its distribution channels like the banks and direct agents and the take up rate of this product has been fast & encouraging that the policy will probably be pulled out soon when the tranche has been reached. (This could be seen with its sister product, TM Legacy VIP which was pulled out on 21 July 2014).
children or grandchildren; for the past year since May 2013, Tokio Marine Life Insurance Singapore (TMLS) has been selling a single premium plan known as

In any case, the surviving TM Infinite VIP runs on a simple model:

1. Minimum Single premium of S$133,350
2. Gets you a payout of S$500 EVERY MONTH after 5 years (credited monthly into a S'pore bank account)
3. The payout continues as long as the assured is alive
4. Should Death occurs, 101% of Single premiums paid + Non Guaranteed Terminal Dividend
5. Minimum age 1 year old next birthday
6. Maximum age 70 year old next birthday

      TIPs

• If you want more payout, just multiply accordingly (eg $266,700 gets you $1000 monthly payout)
• Greater advantage will be to buy on the life of a young child, since payout continues as long as assured is alive.
• Good option to prepare for a child who will be going to University as their MONTHLY living expense.

Did I mention that you can get your capital back* ? Ask for a proposal and take a look yourself!

* Conditions apply

The Rising Retirement Problem of Singapore and A Unique Solution!

Finally, a product being launched once again by the ever innovative Tokio Marine Life Insurance product development team to address our greying population. In the recently concluded National Day Rally 2014, Singapore's Prime Minister did highlight the use of the lease buyback scheme of the HDB and Minimum Sum Requirement's (MSR) annuity program to meet the needs of the country's Silver Generation.

However, for many, it might not be sufficient to retire with (as voiced by TMLS's CEO-click on image on right)
Well, all is not lost as the company is the 1st to launch a similar annuity program which u can pay by installments, instead of a huge lump sum to achieve your aim and more importantly, spouses can also be covered! Another great  feature  is that you can now start planning for your retirement at a younger age with TM Retirement Paycheck Life (Click on the image below)!

Will just let you read the newspaper cuttings for what the product can do; in the meantime, if you want to know more, please contact us NOW!