Different people have different definitions of being F.I., but in general, the concept is to be able to stop working because there is not a need to. You would have a fully paid house and sufficient money to spend for the rest of your life. If you continue to work, it would hopefully is because you LOVE to work, and not you NEED to work.
The CPF LIFE Program was launched by the CPF Board because they realized that the old Minimum Sum Scheme system which gives only a 20yrs payment after retirement is not that ideal.
The CPF Lifelong Income For Elderly (CPF LIFE) is a scheme that will provide you with a monthly starting from your Draw Down Age (DDA), for as long as you live.
For e.g.
The difference between the 4 types of plans; Basic / Balanced / Plus / Income, is to strike a balance between your monthly payout and the bequest that would be left behind for your beneficiaries. Your choice would ultimately depends on your retirement needs. Do encourage your elderly parents above 55 to sign up for the program to enjoy the Life Bonus up to $4k.This, no doubt is a good option for our retirement planning. But, think again, is this kind of payout sufficient to sustain your lifestyle? Say for e.g. you are now a working adult earning $3k a month, assuming that you spent a bare minimal on necessities of at least $1k a month, the CPF payment may not be sufficient (excluding the factoring in of inflation). If you want to have enjoy a good lifestyle of staying in a big house, driving a car, and going for regular holidays, do not depend on your CPF savings ONLY.
By having a proper financial planning, and using good financial tools to your advantage, it is giving you the options of how you want to retire. There are many good instruments in the market whose objective is to provide you with a well-built up retirement fund. What you need to put in is disciplined savings and time for it to grow.
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