Recently i went to attend a HSBC life talk about CPF for retirement, how you can diversified further after hitting the FRS for the cpf special account. The excess funds to invest in a fixed income fund and guarantee by HSBC life in terms of capital but not on the returns. It seems very attractive as the income yield is currently at 8%+ and the payout is every month for the dividends. Comparing to the fixed income you will get from CPF when you are age 65 and above.
Depending on the amount of money you have set aside at age 55, once upon reaching 65 years old. You will start to draw down the money for life. Upon reaching death when you are age 82 and above, you will not get any capital return. With the HSBC life, you will still get whatever money you invested + 5% when you pass away. It seems very attractive and put the money to work harder. Only thing is if HSBC life goes to chapter 11, or company is being bought over by other companies then you may not get back any money.
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