CPF minimum sum to be raised to $139,000

[henrylbh]

I tried Sourcing online for a detailed answer but to no avail... Hopefully someone out there can answer this:

I understand that there is currently a cpf min sum and one can pledge their property for up to half the min. sum.

1.)
Now what happened ifwe couple were to pledge their property for min sum @ 55, both r of the same age, and flat got enbloc when we reach 56? currently living in a 3room hdb, fully paid up... Will they have enough to downgrade, fully paid up? I don't think can get loan at 56...

2.)
What happen if either one sway sway were to pass away at say when they are 58 or 68 (after pledging of property). Can their child inherit the flat from them?

What I heard from some is that though we had pledge the property for the min. sum but upon death, everything will b 'pang sua' and our children will inherit not only our flat but also the little left in our cpf. Is that true?

Seriously I felt the info given was too good to b true.
If tts true..l the ms like quite good and 'its ok even if we don't hit the ms...'

I may be wrong. If your flat selected for enbloc, you will be paid market value less principal and interest on cpf used, if any. If you below 55, you can still use all your cpf for the next purchase. But if you are above 55, half of the min sum in cpf (according to your cohort) cannot be used for the next purchase.

 

[anddrool]

I may be wrong. If your flat selected for enbloc, you will be paid market value less principal and interest on cpf used, if any. If you below 55, you can still use all your cpf for the next purchase. But if you are above 55, half of the min sum in cpf (according to your cohort) cannot be used for the next purchase.

For SERS owners above 55 can have a choice to use all refunded cpf to pay for next hdb.
SERS package tweaked to make it more favourable for residents - Channel NewsAsia

 

[Mean jinx]

For SERS owners above 55 can have a choice to use all refunded cpf to pay for next hdb

Now I hav better nderstanding of the cpf scheme le... Thanks everyone.

Actually quite confusing, cause when I called cpf, was told tt in the event of sale/en bloc of flat...if I had pledge my property (I think auto?) I will need to top up the min. sum first... Cannot say I need the money for the next flat then 'skip' it... So was wondering abt the big 'what if'...

But if can dig into ra acct for the new flat... Ok ma...
Just tt for retirement, one must b prepared cash wise, cannot rely on cpf.

Nothing truly belongs to us here... Hdb/car/cpf...

 

[endlssorrow]

assume ur cpf is 1k month, 1 year is 12k.
20 yr is 240k. that does not include buy house wor. .. so in short cpf money u won't touch when u hit 55.


and every 2 year cpf board will raise it.

shiok... many more years ahead...

 

[henrylbh]

For SERS owners above 55 can have a choice to use all refunded cpf to pay for next hdb.
SERS package tweaked to make it more favourable for residents - Channel NewsAsia

Thanks for the info.

 

[lzydata]

assume ur cpf is 1k month, 1 year is 12k.
20 yr is 240k. that does not include buy house wor. .. so in short cpf money u won't touch when u hit 55.


and every 2 year cpf board will raise it.

shiok... many more years ahead...

Great, another person who forgot about interest. Compounding is powerful. And 2 years? You are making things up.

 

[endlssorrow]

Great, another person who forgot about interest. Compounding is powerful. And 2 years? You are making things up.[/QUOT

as mentioned.. assume

 

[audiovideo]

kinda confuse by all these CPF thingy
IF I turning 55 this year, and I only have $120K in CPF OA, and $60k each for the other accounts, what can I do?

can I withdraw any $$?
how much will be transferred to what account?
and how can I use the rest of the CPF $$ from now on?


thanks

 

[cscs3]

kinda confuse by all these CPF thingy
IF I turning 55 this year, and I only have $120K in CPF OA, and $60k each for the other accounts, what can I do?

can I withdraw any $$?
how much will be transferred to what account?
and how can I use the rest of the CPF $$ from now on?


thanks

If you do not have immediately need. Just leave it there. Unless you can find a bank who pay you 4% interest rate.

 

[cscs3]

Lzydata: Thanks for the clarification.

I did a simple calculation.

Assuming a 30 years old person took a 30years loan to service his house.
Logically, he will use up most of his monthly contribution in his CPF to service this loan.
Let say his salary is above average of the population and he manage to save $500/mth in his CPF(OA,SA) and the rest of the contribution in MA.

He would need $139,000/500 = 278 months = 23.1years to meet the current minimum sum.

After 23 years, this person will be 53 years old and he still need another 7 years to finish his 30 years loan.

After 25years (at age 55years old), this person is unlikely to meet the minimum sum.
Assuming the calculation of 2K per year and inflation of 3%/year,
[139K +2K(25)] x 1.03 = $194.67K ~ Ballpark figure ~$200K (SA minimum sum)

Assuming MA minimum sum increase by 1K per year.
After 25 years, MA Minimum sum = [43.5K + 1K(25)]x1.03 ~ $70.5K ~ Ballpark figure say $75K

25 years from now.
Minimum sum SA= $200K
Minimum sum MA = $75K

As you already say - you are doing "assuming"
So there is many factors which will be changed. eg, house price increase, salary increase and many more.

 

[lzydata]

kinda confuse by all these CPF thingy
IF I turning 55 this year, and I only have $120K in CPF OA, and $60k each for the other accounts, what can I do?

can I withdraw any $$?
how much will be transferred to what account?
and how can I use the rest of the CPF $$ from now on?


thanks

Hopefully this FAQ can help: How much can I withdraw from my CPF Account when I reach 55?

If you really need to calculate the exact amount you can withdraw, I suggest going to the CPF office in person. Then you can be sure of the right answer.

 

[wuming79]

Hi guys, what happens if someone at age 55 got divorce and he sold his property and the sales proceed he got is....say....200k only. Then after returning to CPF and meeting the MS, he left with 61k. Does that mean he is going to rent a place for the rest of his life because he can't buy any place in Singapore to move in?

 

[cscs3]

Hi guys, what happens if someone at age 55 got divorce and he sold his property and the sales proceed he got is....say....200k only. Then after returning to CPF and meeting the MS, he left with 61k. Does that mean he is going to rent a place for the rest of his life because he can't buy any place in Singapore to move in?

Then why sell in the first place?
BTW, I am not sure the 200K you mention is profit or total selling price?

 

[lzydata]

Hi guys, what happens if someone at age 55 got divorce and he sold his property and the sales proceed he got is....say....200k only. Then after returning to CPF and meeting the MS, he left with 61k. Does that mean he is going to rent a place for the rest of his life because he can't buy any place in Singapore to move in?

He can consider buying a studio apartment from HDB, either BTO or SBF, but he'll still need around $40k more.

HDB InfoWEB: Eligibility to buy Studio Apartment : Buying A New Flat

 

[lzydata]

Then why sell in the first place?

Because of the divorce?

 

[anfielder]

Hi guys, what happens if someone at age 55 got divorce and he sold his property and the sales proceed he got is....say....200k only. Then after returning to CPF and meeting the MS, he left with 61k. Does that mean he is going to rent a place for the rest of his life because he can't buy any place in Singapore to move in?

Only half the minimum sum cannot be touched for property. . Whih means in your example, you can use 200k-69.5k = 130.5k.

 

[wuming79]

Only half the minimum sum cannot be touched for property. . Whih means in your example, you can use 200k-69.5k = 130.5k.

130k still cannot buy without taking loan again right? Will CPF based on special case and not lock the CPF up?

 

[avviicc]

last year 2012 this thread is $139k.

Exactly 1 year later 2013, minimum sum is raised to $148k..

Song gao gao

 

[clearsky2007]

When will CPF stop increasing the minimum ceiling?
Seems like every year keep on increasing with the same reasons.

 

[Dividends Warrior]

When will CPF stop increasing the minimum ceiling?
Seems like every year keep on increasing with the same reasons.

It will never stop.

Aging population. More people are retiring.......

So, congrats to the people born in the 50s and 60s.

Those born in the 70s, 80s and 90s, gg.com