Pre CPF Annuity Report Update

News just reported what I would say a pre-teaser to the CPF annuity. I would say there are 2 main points:

1. Return of "capital" if your payments do not exceed the amount that you have put in
2. Flexible starting of withdrawal age to start from 65 years old.
   

The annuity will cost more due to these changes.

I would say cost aside, that these changes are quite positive and would work with the general public. However, I feel that feedback from the ground should have been considered first before making such an announcement. There will not be such negativity if all the reactions from the common people has been taken into account.

Anyway, based on this new information, I would guess that the annuity would be based on something like the Medishield. Most probably there would be 3 plans:

1. 85 years old withdrawal age, with return of capital.
2. 75 years old withdrawal age, with return of capital.
3. 65 years old withdrawal age, with return of capital.

Plan 3 will cost more than Plan 2, which will cost more than Plan 1. Payout will be the same across the 3 plans. That's just roughly what I think would happen, to keep things simple.

This is all just a prediction. The full details are not out yet, but I think the purpose for telling us this information is for them to feel the ground. Most probably the details will come out before the new year.

For now, I will not update my CPF changes summary here since nothing has been cast in stone.