ANNUTIES-How can we use them?

[a74henry]

We love different sources of income...often these are a result of delayed gratification.

[Temperament]

Something "strange" happens to me regarding my MS. and CPF LIFE.
i have delayed my DDA from 62 to 65. This year is my 65 DDA. As forumers know i am against joining CPF LIFE Annuity because it pays me much less than the amount i will be getting per month with my MS without joining. That was if i join at the age of DDA 62.
Now i found out if i join CPF LIFE this year DDA@65, i will be getting about 11% more than MS monthly payout (though the amount will be adjusted Y-Y) if i don't join. It's strange to me as my maths understanding couldn't coop. But who cares as i think i should be getting more for life if i live beyond 85. (It's still a "gamble"). But actually not only i am buying "protection" for myself, it's also for my son. So i have to change my mind lol!
Then, i calculate my wife MS to see whether if she joins CPF Life at what accumulated MS. amount will she gets a higher payout.
Strange, my calculation (using CPF LIFE calculator) always show she will be getting much less even after starting CPF LIFE 1 to 2 years after her DDA. It may be insurance actuary calculation always show woman tends to live longer than man. Right???

[NTL]

Something "strange" happens to me regarding my MS. and CPF LIFE.
i have delayed my DDA from 62 to 65. This year is my 65 DDA. As forumers know i am against joining CPF LIFE Annuity because it pays me much less than the amount i will be getting per month with my MS without joining. That was if i join at the age of DDA 62.
Now i found out if i join CPF LIFE this year DDA@65, i will be getting about 11% more than MS monthly payout (though the amount will be adjusted Y-Y) if i don't join. It's strange to me as my maths understanding couldn't coop. But who cares as i think i should be getting more for life if i live beyond 85. (It's still a "gamble"). But actually not only i am buying "protection" for myself, it's also for my son. So i have to change my mind lol!
Then, i calculate my wife MS to see whether if she joins CPF Life at what accumulated MS. amount will she gets a higher payout.
Strange, my calculation (using CPF LIFE calculator) always show she will be getting much less even after starting CPF LIFE 1 to 2 years after her DDA. It may be insurance actuary calculation always show woman tends to live longer than man. Right???

You are right about that. The longer a person live, the lower the payout. Maybe come to my time, people can live to 100, then my CPF Life payout will be pathetic!

[Temperament]

Something "strange" happens to me regarding my MS. and CPF LIFE.
i have delayed my DDA from 62 to 65. This year is my 65 DDA. As forumers know i am against joining CPF LIFE Annuity because it pays me much less than the amount i will be getting per month with my MS without joining. That was if i join at the age of DDA 62.
Now i found out if i join CPF LIFE this year DDA@65, i will be getting about 11% more than MS monthly payout (though the amount will be adjusted Y-Y) if i don't join. It's strange to me as my maths understanding couldn't coop. But who cares as i think i should be getting more for life if i live beyond 85. (It's still a "gamble"). But actually not only i am buying "protection" for myself, it's also for my son. So i have to change my mind lol!
Then, i calculate my wife MS to see whether if she joins CPF Life at what accumulated MS. amount will she gets a higher payout.
Strange, my calculation (using CPF LIFE calculator) always show she will be getting much less even after starting CPF LIFE 1 to 2 years after her DDA. It may be insurance actuary calculation always show woman tends to live longer than man. Right???

You are right about that. The longer a person live, the lower the payout. Maybe come to my time, people can live to 100, then my CPF Life payout will be pathetic!

SO my wife will just take the normal monthly MS. payout which is so much more higher. About 11% higher and so much better for the bequest amount too.
Actually in this way we seems to have the best of both worlds. My MS. join CPF LIFE, hers remain hers, though not for life. But at least should last from 65 to 85. (If GOD permits she lives that long). Another words we have hedged our MS to certain extent. Right???
Amen.

[NTL]

Something "strange" happens to me regarding my MS. and CPF LIFE.
i have delayed my DDA from 62 to 65. This year is my 65 DDA. As forumers know i am against joining CPF LIFE Annuity because it pays me much less than the amount i will be getting per month with my MS without joining. That was if i join at the age of DDA 62.
Now i found out if i join CPF LIFE this year DDA@65, i will be getting about 11% more than MS monthly payout (though the amount will be adjusted Y-Y) if i don't join. It's strange to me as my maths understanding couldn't coop. But who cares as i think i should be getting more for life if i live beyond 85. (It's still a "gamble"). But actually not only i am buying "protection" for myself, it's also for my son. So i have to change my mind lol!
Then, i calculate my wife MS to see whether if she joins CPF Life at what accumulated MS. amount will she gets a higher payout.
Strange, my calculation (using CPF LIFE calculator) always show she will be getting much less even after starting CPF LIFE 1 to 2 years after her DDA. It may be insurance actuary calculation always show woman tends to live longer than man. Right???

You are right about that. The longer a person live, the lower the payout. Maybe come to my time, people can live to 100, then my CPF Life payout will be pathetic!

SO my wife will just take the normal monthly MS. payout which is so much more higher. About 11% higher and so much better for the bequest amount too.
Actually in this way we seems to have the best of both worlds. My MS. join CPF LIFE, hers remain hers, though not for life. But at least should last from 65 to 85. (If GOD permits she lives that long). Another words we have hedged our MS to certain extent. Right???
Amen.

Whichever is better, take!

[wsreader]

Temperament, are you saying that

for male,
CPF LIFE DDA@62 is < MS DDA@62
CPF LIFE DDA@65 is 11% > MS DDA@65

but for female,
CPF LIFE is always < MS whatever the DDA

?

[Temperament]

Temperament, are you saying that

for male,
CPF LIFE DDA@62 is < MS DDA@62
CPF LIFE DDA@65 is 11% > MS DDA@65

but for female,
CPF LIFE is always < MS whatever the DDA

?

No. i say for myself only (1948)
And Wife (1951)
Based on CPF LIFE Calculator.

i don't know about other years and others circumstances. i think there are "variations" if you go and read the CPF LIFE booklet available on CPF websites.
It is not the same for everyone even in the same year. The GOV. really doesn't gives you a cent more but based on the amount each individual has in his MS. Another words MS also stand for "Meritocracy Scheme". Ha! Ha!

[butterfly]

Something "strange" happens to me regarding my MS. and CPF LIFE.
i have delayed my DDA from 62 to 65. This year is my 65 DDA. As forumers know i am against joining CPF LIFE Annuity because it pays me much less than the amount i will be getting per month with my MS without joining. That was if i join at the age of DDA 62.
Now i found out if i join CPF LIFE this year DDA@65, i will be getting about 11% more than MS monthly payout (though the amount will be adjusted Y-Y) if i don't join. It's strange to me as my maths understanding couldn't coop. But who cares as i think i should be getting more for life if i live beyond 85. (It's still a "gamble"). But actually not only i am buying "protection" for myself, it's also for my son. So i have to change my mind lol!
Then, i calculate my wife MS to see whether if she joins CPF Life at what accumulated MS. amount will she gets a higher payout.
Strange, my calculation (using CPF LIFE calculator) always show she will be getting much less even after starting CPF LIFE 1 to 2 years after her DDA. It may be insurance actuary calculation always show woman tends to live longer than man. Right???

Hi,
May I know under the MS, what would you be receiving each month (for 20 years), if your DDA is 62 vs 65 ?

From rough calculation, for each year one delays the DDA, and assuming that the monthly payout remains the same, one should be able to prolong the same monthly payout for about 2 years. That is, one should be able to receive the payout for 22 years instead of 20. <<On the other hand, if one is to restrict the payout to 20 years, the payout should increase by 10% for each year we delay the DDA.>>

Thanks.

[Temperament]

Something "strange" happens to me regarding my MS. and CPF LIFE.
i have delayed my DDA from 62 to 65. This year is my 65 DDA. As forumers know i am against joining CPF LIFE Annuity because it pays me much less than the amount i will be getting per month with my MS without joining. That was if i join at the age of DDA 62.
Now i found out if i join CPF LIFE this year DDA@65, i will be getting about 11% more than MS monthly payout (though the amount will be adjusted Y-Y) if i don't join. It's strange to me as my maths understanding couldn't coop. But who cares as i think i should be getting more for life if i live beyond 85. (It's still a "gamble"). But actually not only i am buying "protection" for myself, it's also for my son. So i have to change my mind lol!
Then, i calculate my wife MS to see whether if she joins CPF Life at what accumulated MS. amount will she gets a higher payout.
Strange, my calculation (using CPF LIFE calculator) always show she will be getting much less even after starting CPF LIFE 1 to 2 years after her DDA. It may be insurance actuary calculation always show woman tends to live longer than man. Right???

Hi,
May I know under the MS, what would you be receiving each month (for 20 years), if your DDA is 62 vs 65 ?

From rough calculation, for each year one delays the DDA, and assuming that the monthly payout remains the same, one should be able to prolong the same monthly payout for about 2 years. That is, one should be able to receive the payout for 22 years instead of 20. <<On the other hand, if one is to restrict the payout to 20 years, the payout should increase by 10% for each year we delay the DDA.>>

Thanks.

The idea of delay is hopefully your MS will last another 3 years that is if you delay from 62 to 65. i think you can delay as long as you want even after 65, but the MS payout will never change. But if you join CPF life later (as long as you are below the age of 80), with a larger amount accumulated MS and a "shorter life left to live", of course you will get even more than maybe 15% or even > 20% of your MS payout if you join at 79 years + 364 days.
Go and check with insurance actuary. The actual maths is beyond me.

[butterfly]

Something "strange" happens to me regarding my MS. and CPF LIFE.
i have delayed my DDA from 62 to 65. This year is my 65 DDA. As forumers know i am against joining CPF LIFE Annuity because it pays me much less than the amount i will be getting per month with my MS without joining. That was if i join at the age of DDA 62.
Now i found out if i join CPF LIFE this year DDA@65, i will be getting about 11% more than MS monthly payout (though the amount will be adjusted Y-Y) if i don't join. It's strange to me as my maths understanding couldn't coop. But who cares as i think i should be getting more for life if i live beyond 85. (It's still a "gamble"). But actually not only i am buying "protection" for myself, it's also for my son. So i have to change my mind lol!
Then, i calculate my wife MS to see whether if she joins CPF Life at what accumulated MS. amount will she gets a higher payout.
Strange, my calculation (using CPF LIFE calculator) always show she will be getting much less even after starting CPF LIFE 1 to 2 years after her DDA. It may be insurance actuary calculation always show woman tends to live longer than man. Right???

Hi,
May I know under the MS, what would you be receiving each month (for 20 years), if your DDA is 62 vs 65 ?

From rough calculation, for each year one delays the DDA, and assuming that the monthly payout remains the same, one should be able to prolong the same monthly payout for about 2 years. That is, one should be able to receive the payout for 22 years instead of 20. <<On the other hand, if one is to restrict the payout to 20 years, the payout should increase by 10% for each year we delay the DDA.>>

Thanks.

The idea of delay is hopefully your MS will last another 3 years that is if you delay from 62 to 65. i think you can delay as long as you want even after 65, but the MS payout will never change. But if you join CPF life later (as long as you are below the age of 80), with a larger amount accumulated MS and a "shorter life left to live", of course you will get even more than maybe 15% or even > 20% of your MS payout if you join at 79 years + 364 days.
Go and check with insurance actuary. The actual maths is beyond me.

Thanks for the info.
Now I understand that the month payout will remain the same if we delay the DDA.

Sorry that I made a mistake in my rough calculation. It should read :

""From rough calculation, for each year one delays the DDA, and assuming that the monthly payout remains the same, one should be able to prolong the same monthly payout for about 1 (not 2) years. That is, one should be able to receive the payout for 21 (not 22) years instead of 20. ""


Regards.