If you read a lot about retirement planning, you may have built up some Income Generating Assets such as Real Estate Investment Trusts (REITs) or Retirement Income Plans. But few people talk about CPF Life.
This is not surprising because people tend to associate retirement planning with stock and property investments. Many people believe that “you need one million dollars to retire”, and that is their retirement goals.
But if you dive deeper, you will realise that the solution to your retirement is never about how much money you have or will have, but how much passive income you can receive without working.
Traditionally, if you are worried about running out of money in retirement, the solution was annuity or pension schemes. But with a decade of low-interest rate environment, many insurers have withdrawn their annuity products.
CPF Life becomes one of the best solutions for a lifetime retirement income now. In this article, I will explain to you how CPF Life works and how it complement your other retirement plans.