I'd be interested to know if anyone else has been confronted with the following...
- I received a letter in the post today from Aviva
- As a PR and CPF contributor, I am going to be auto-enrolled in Eldershield when I turn 40 in a few months time, unless I choose to opt out
- The deal is that I will pay an annual premium out of my CPF of around S$175 until I am 65
- In return, I will be able to claim S$400 for up to 72 months if I become severely disabled
My initial reaction is:
- S$175 for 25 years equals almost S$4k. That's quite a lot to pay for a max of ~S$28k of *potential* benefit, especially when you factor in the time value of money
- can you trust that the terms of the scheme won't change 20, 30, 40 years from now?
- will I even be in Singapore in my old age?
Thoughts?