Is it correct to say that cpf min sum of 120K applies to
all?
What happens to the excess of 120K cpf?
I am still unclear how the withdrawal is like.
What I know is everyone will retire and draw 500 / 700 a month only
. Does this also mean that this 500 / 700 drawable applies to
everyone regardless of your social status , lifestyle, size of your
house, monthly maintenance and expenditure level ? I think it
is.
And 120K is meant to be drawn over 20 years ? But I
calculate:
20 * 12 * 700 = 168K.
So, can someone advise me is it not true that min sum of 120K is
INSufficient to cover 20 years?
For cpf accumulated in access of 168K, what happens? Is that amount
withdrawable at age 67 (I assume 67 applies to all of you now
younger than 50)? To illustrate, lets say at 67, your cpf is 200K
and you only allowed to take back 700 a month. Over 20 years, you
can only take back 168K based on this calculation. What happens to
the balance? when can that be withdrawn, if ever?
Why as a old old man, highly experienced in work, cannot be
entrusted to manage his own cpf even after say, 79 years old? die
die have to slowly withdraw 700 a month? So, constant? So
predictable is life? No Life and Death situation requiring $701 to
save your own life?
Well , this is my understanding of how the whole thing works.
You can withdraw your CPF savings when you are 55 years old,
provided you leave behind what is known as the minimum sum. From 55
years to 62 (going to be raised to 67) you will not get anything
from CPF. when you hit 62, the CPF board will start repaying
whatever (the min sum + interest earned from 55 to 62years)
remaining sum you have, in monthly installments over the next 20
years(untill 82 years).
For eg at 55 you have 200k in your CPF, and say the minimum sum is
90k. Which means you can withdraw 110k and leave the min sum 90k
behind. when you are 62 years this 90K+ interest will be payed over
20 years (375/m).
The amounts that i have used might not be accurate but i hope you
get the picture.
