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I wonder how many of us here are clear about how the CPF Life balance sum is computed before returning to the beneficiaries upon demise of the account holder ? Here is my understanding. Assuming a person Mr. A has $170k in his RA at age 55. by the time he reaches 65, his RA account should have $242k assuming a compounding interest of 4%. to simplify our discussion, i stop the interest accruing from 65 onwards. At 65, Mr, A start drawing out $1,2k per month for 8 years, 96*$1.2k = he would have drew out $115.2k when he is 74 year old. Assuming Mr. A unfortunately pass away at 74, the BIG question is how much would the balanced sum be returned to the beneficiaries? The answer is $170k - $115,2k = $54.8k. the deduction is not from $242k, because the sum to be returned is without interest, letting alone the balanced sum also has accrued compound interest YoY during the disbursement period from 65 to 74. so go digest and think about how much money from the earned interest is evaporated from our account. Dont get me wrong, I support CPF Life, but the way the refund being computed is sucks. Over and above, not to forget that the monthly disbursement amount is based on the assumption that a member would exhaust his account by age of 93. meaning, if anyone pass away before 93, all the interest earned along the way from 55 year old would all be gone.