Dear Mr. Tan
I read an article (link from your blg) about the pros and cons of annuities. It seems that the cons are overwhelming. What is your opinion about CPF Life annuity?
REPLY
The cons apply mostly to annuities sold by comercial insurance companies, where the charges are high and the consumer does not get a fair return on the annuity. These negative points do NOT apply to CPF Life, as it is runned on a mutual basis (i.e. the CPF does not run it to make a profit), and any surplus is distributed fairly among the annuitants.
This is explained in my book, Practical Guide on Financial Planning. You will also find other tips that are benefiicial to people approaching retirement.
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