lifefinance

lifefinance

4 thoughts on “How Much of My CPF Should Go Into CPF LIFE?

  1. Terrible attempt to paint a nice picture of CPF OA is the best option as it is risk free. What about inflation? What about A rated bonds?
    Of course higher returns come with risk and it is up to individual to manage them.

    1. “Terrible” is a rather strong choice of word to use, don’t you think? As with many other things, “risk free” is very different from “low risk”, just as for many of us “no chance of death” is not the same as “low chance of death”. For a significant proportion of people, especially the older ones and retirees, risk-free is the ideal state to be in for peace of mind. In the example shown, payouts rise by 2% a year, which alleviates a significant part of inflation risk.

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