Should We Keep the Full Retirement Sum (FRS) or the Enhanced Retirement Sum (ERS) in Our CPF After Age 55?
As we approach the age of 55, we need to make a critical decision regarding our CPF savings. Should we maintain the Full Retirement Sum (FRS) or opt for the Enhanced Retirement Sum (ERS)? The decision is critical as it will have a direct impact on our retirement lifestyle and our decision will effectively lock in our money for literally the rest of our lives.
Pros of Choosing the Enhanced Retirement Sum
Higher Monthly Payouts
The most obvious benefit of the ERS is the increased monthly payouts under CPF Life. By setting aside a larger sum, we secure a higher monthly income during retirement which will provide more comfort and peace of mind during our golden years.
Greater Financial Security
The ERS offers a reliable and guaranteed income stream ideal for those of us who prefer a hands-off approach when building our retirement nest egg.
