HWZ Forums

Login Register FAQ Mark Forums Read

CPF Special Account after 55 years old

Reply
 
LinkBack Thread Tools
Old 09-02-2018, 11:33 PM   #1
Senior Member
 
Join Date: May 2017
Posts: 714
CPF Special Account after 55 years old

My uncle turned 55 in 2008. Then, 50k was drawn from his SA and placed into CPF Life and he chose CPF Standard Plan.

From his latest statement (Jan 2018), I noticed that he still had some money in his SA (around 9k) and a sum of money in his RA (around 15k).

1) What happens to these monies when he turned 65 in May next year?
2) Can he transfer his OA to his SA now in order to earn higher interest? Will his SA be locked in?
3) Can he withdraw from his SA?
JuniorLion is offline   Reply With Quote
Old 09-02-2018, 11:41 PM   #2
High Supremacy Member
 
crimsontactics's Avatar
 
Join Date: Nov 2009
Posts: 35,036
Why your 50k become 15k?

The money only goes to the pot at 65.

Sent from . using GAGT
crimsontactics is offline   Reply With Quote
Old 09-02-2018, 11:47 PM   #3
Senior Member
 
Join Date: May 2017
Posts: 714
Why your 50k become 15k?

The money only goes to the pot at 65.

Sent from . using GAGT
50k was put into "CPF LIFE" Account.
Remaining 15k in RA.
JuniorLion is offline   Reply With Quote
Old 09-02-2018, 11:53 PM   #4
High Supremacy Member
 
crimsontactics's Avatar
 
Join Date: Nov 2009
Posts: 35,036
50k was put into "CPF LIFE" Account.
Remaining 15k in RA.
Both my parents turn 55 last year and their money still stays inside their RA and SA.

It only moves to "CPF Life" at 65.

They are not even asked to pick their options yet.

Sent from . using GAGT
crimsontactics is offline   Reply With Quote
Old 10-02-2018, 03:16 AM   #5
Supremacy Member
 
Join Date: Mar 2004
Posts: 8,986
My uncle turned 55 in 2008. Then, 50k was drawn from his SA and placed into CPF Life and he chose CPF Standard Plan.

From his latest statement (Jan 2018), I noticed that he still had some money in his SA (around 9k) and a sum of money in his RA (around 15k).

1) What happens to these monies when he turned 65 in May next year?
2) Can he transfer his OA to his SA now in order to earn higher interest? Will his SA be locked in?
3) Can he withdraw from his SA?
CPF Life is mandatory only for those born from 1 Jan 1958. For your uncle, CPF Life is an option.

He can't choose any plan yet until or near payout eligibility age, which is 65. Also to say he chose Standard Plan and yet has RA balance is strange.
henrylbh is offline   Reply With Quote
Old 10-02-2018, 07:40 AM   #6
Senior Member
 
Join Date: May 2017
Posts: 714
CPF Life is mandatory only for those born from 1 Jan 1958. For your uncle, CPF Life is an option.

He can't choose any plan yet until or near payout eligibility age, which is 65. Also to say he chose Standard Plan and yet has RA balance is strange.
Yes, that's exactly the weird part.

When he clicked on "My Messages", it says "you are on CPF Life Standard. 50,000 has been deducted... your estimated monthly payout is $400-$450 from age 65 onwards.."

When he clicked on his full account details, it also says his RA balance is 15k.

Strange huh?
JuniorLion is offline   Reply With Quote
Old 10-02-2018, 08:22 AM   #7
Junior Member
 
Join Date: Apr 2017
Posts: 61
My uncle turned 55 in 2008. Then, 50k was drawn from his SA and placed into CPF Life and he chose CPF Standard Plan.

From his latest statement (Jan 2018), I noticed that he still had some money in his SA (around 9k) and a sum of money in his RA (around 15k).

1) What happens to these monies when he turned 65 in May next year?
2) Can he transfer his OA to his SA now in order to earn higher interest? Will his SA be locked in?
3) Can he withdraw from his SA?
1. Before he turn 65 in May, CPF will ask him in writing whether he wants to defer payout or start payout from CPF Life.
2. Cannot transfer from OA to SA.
3. He can withdraw from SA and OA.

Go study his CPF statements from 2008 todate to understand where the 15k in RA come from - mostly interest and bonus from govt maybe. When he start CPF life payout, money in RA will also be paid to him in instalments until it hit zero.

He is under old CPF Life scheme, people here mostly only know or talking about the latest scheme.
maple96 is offline   Reply With Quote
Old 10-02-2018, 09:02 AM   #8
Senior Member
 
Join Date: Nov 2015
Posts: 2,078
It's 2018 now and his uncle is 65 this year.

I suspect CPF will purchase the annuity in January regardless when his birthday month is.

Just a suspicion on my part...
elnewbie is offline   Reply With Quote
Old 10-02-2018, 09:24 AM   #9
Honorary Member
 
The_Davis's Avatar
 
Join Date: Mar 2001
Posts: 113,901
My uncle turned 55 in 2008. Then, 50k was drawn from his SA and placed into CPF Life and he chose CPF Standard Plan.

From his latest statement (Jan 2018), I noticed that he still had some money in his SA (around 9k) and a sum of money in his RA (around 15k).

1) What happens to these monies when he turned 65 in May next year?
2) Can he transfer his OA to his SA now in order to earn higher interest? Will his SA be locked in?
3) Can he withdraw from his SA?
how much is his payout now? or did he delay till 70?
The_Davis is online now   Reply With Quote
Old 10-02-2018, 09:40 AM   #10
Senior Member
 
Join Date: May 2017
Posts: 714
1. Before he turn 65 in May, CPF will ask him in writing whether he wants to defer payout or start payout from CPF Life.
2. Cannot transfer from OA to SA.
3. He can withdraw from SA and OA.

Go study his CPF statements from 2008 todate to understand where the 15k in RA come from - mostly interest and bonus from govt maybe. When he start CPF life payout, money in RA will also be paid to him in instalments until it hit zero.

He is under old CPF Life scheme, people here mostly only know or talking about the latest scheme.
Exactly. CPF Life keeps evolving, and I don't even know what the old scheme now means..

From what I've read, there will be 2 deductions. First deduction is at the age of 55, and second deduction is at the age of 65 where the RA will be emptied.
JuniorLion is offline   Reply With Quote
Old 10-02-2018, 09:41 AM   #11
Senior Member
 
Join Date: May 2017
Posts: 714
how much is his payout now? or did he delay till 70?
Estimated payout is 450-500. I advised him not to delay till 70.
JuniorLion is offline   Reply With Quote
Old 10-02-2018, 10:07 AM   #12
Master Member
 
Join Date: Jun 2010
Posts: 3,231
I advised him not to delay till 70.
Why is that?
BBCWatcher is offline   Reply With Quote
Old 10-02-2018, 10:11 AM   #13
Senior Member
 
Join Date: May 2017
Posts: 714
Why is that?
Will never recover the 7% lost until age 90 onwards. Better to just start at 65 years old, and put the excess back into RA at the end of the year to earn 4% interest.
JuniorLion is offline   Reply With Quote
Old 10-02-2018, 11:38 AM   #14
Master Member
 
Join Date: Jun 2010
Posts: 3,231
Will never recover the 7% lost until age 90 onwards.
Thatís really not the way to think of it. This isnít a game.

Better to just start at 65 years old, and put the excess back into RA at the end of the year to earn 4% interest.
No, mathematically that isnít best. (And it just plows back into CPF LIFE anyway, but with an interruption of interest for at least one month.)

Itís really quite simple: does he need the money to survive before age 70? If yes, fine, start it up. If not, let it ride. The only real purpose this trickle of income can serve is as exactly what itís designed to do: insure against longevity, insure against the risk of exhausting (or losing, or some of both) his savings. Itís a bigger trickle if he waits and can wait.

Iím assuming CPF LIFE here. Which is a very reasonable choice in the circumstances, most likely.
BBCWatcher is offline   Reply With Quote
Old 10-02-2018, 11:39 AM   #15
Senior Member
 
Join Date: May 2017
Posts: 714
That’s really not the way to think of it. This isn’t a game.


No, mathematically that isn’t best. (And it just plows back into CPF LIFE anyway, but with an interruption of interest for at least one month.)

It’s really quite simple: does he need the money to survive before age 70? If yes, fine, start it up. If not, let it ride. The only real purpose this trickle of income can serve is as exactly what it’s designed to do: insure against longevity, insure against the risk of exhausting (or losing, or some of both) his savings. It’s a bigger trickle if he waits and can wait.

I’m assuming CPF LIFE here. Which is a very reasonable choice in the circumstances, most likely.
It doesn't automatically plow back into CPF Life, as I have read. It just stays in the RA, and earns 4% interest. Money in RA functions like a deposit account, which you can withdraw anytime. Unless I'm wrong on this -- would be happy if someone above 65 comes up and say.
JuniorLion is offline   Reply With Quote
Reply
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Terms of Service for more information.


Thread Tools

Posting Rules

Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are On