MYTH: High interest rates…but that probably means high risk too.
MYTH: My money will go to the Government when I die.
MYTH: I have to share all my CPF LIFE interest with others.
MYTH: CPF LIFE can’t compete with private annuity plans.
Common misconceptions about CPF LIFE
Your savings in CPF LIFE is guaranteed by the Singapore Government, which means its interest rates, with a floor of 4 per cent per year, come with no risk.
THE FACT IS...
Research has shown that CPF LIFE is value for money. It provides one of the highest payout for every dollar committed compared to other lifelong private annuities. It also provides lifelong payouts, unlike some private annuity plans which only provide payouts for a limited duration.
Rest assured, all your CPF savings will automatically go to your nominees as long as you have made a valid CPF nomination. Otherwise, your CPF savings will be transferred to the Public Trustee for distribution in accordance with the relevant intestacy laws.
The interest earned on your CPF LIFE premium will be factored into your monthly payouts, enabling you to receive higher payouts right from the start. It is only the unused interest in the pool that will be shared with other members after you pass on.
