Now that you’ve gotten to 65, it's time to decide the amount of monthly payouts that you want to receive.
There are 3 different monthly payout plans. The standard plan gives you a consistent monthly payout and is the most common plan.
For those who wish to leave a higher amount of money to your loved ones after your passing, you will be able to choose the basic plan. Here, you will receive a lower monthly payout amount.
It is important to note that if you happen to pass on before spending all your savings, only your unused annuity premium and CPF savings will be paid out to beneficiaries.
Your interest that you have accumulated will not be paid out.
Lastly, there is the escalating plan. In this plan, monthly payouts start lower but will increase by 2% yearly. This is to ensure that your payouts increase in tandem with inflation and allows you to pay for a more consistent standard of living.
As most people choose the standard plan, we will be using this plan to estimate the monthly payouts that you will receive.
For those with the BRS, you will stand to receive around $750 to $810.
For those with the FRS, you will receive $1,390 to $1,490 monthly.
And for those who are lucky enough to opt for the ERS, you’ll be able to receive a whooping $2,030 to $2,180 monthly.
However, for those with enough savings or enough profits from investment returns, you can choose to begin your payouts at 70 instead. This will leave an even larger monthly payout for you to spend as you enjoy your retirement.
However, it is important to realize that most people will require more than $1,500 monthly to retire comfortably.
According to research done by the Lee Kuan Yew School of Public Policy, a single elderly household will require $1,379 a month just to meet the basic needs. This means that even though monthly payouts through FRS will be enough to sustain your basic retirement lifestyle, you will want to plan your investments so that you will be able to retire comfortably.
If you’re unsure as to what you should be doing in order to retire comfortably, why not arrange for a free consultation so that we can help you with your wealth planning today?