FRANCIS NEO: To the uncle who complained about how the CPF Board is trying to hold his money hostage, I ask that he take a look at the numbers properly.
Uncle has S$86,727.75 in his Retirement Account.
CPF offered him S$482 a month in payouts across 28 years
Uncle will receive S$162,000 over 28 years – twice the sum of what’s in his Retirement Account
If Uncle chose a 20-year payout, he will receive about S$400 every month across 20 years.
He gets more per month by stretching the payout over 28 years because of the new interest components introduced by the CPF Board.
As for the mean age that of 85 years old that has been referred to, he will receive S$115,680, which is still more than the amount he currently has in his Retirement Account.
Understand that “mean” means the average life expectancy.
The full range could reach from 65 all the way to 95.
So, let’s not jump on the bandwagon to slam CPF for everything single thing that people don’t understand because they don’t bother to think through things carefully.
The facts and figures are cold and plain and simple.
And they show that the CPF Board is giving this uncle a good deal.