CPF Withdrawl @ 55 years old

AnTiLooP

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Chanced upon this clause on the CPF website...

""""""

From 55:

After setting aside your Full Retirement Sum or Basic Retirement Sum with sufficient property charge/pledge, you can choose to withdraw the remaining CPF balances (excluding top-up monies, government grants, and interest earned in your Retirement Account), or continue to keep your savings in CPF to earn attractive interest. "

""""""

it states that you can withdraw monies after setting aside BRS/FRS but also states that interest earned in the RA cannot be withdrawn.

Does this interest refer to ALL the interest you have earned over the years leading up to age 55 years old?
 

kzonexx

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does anyone know why is that for BRS, we will get lesser monthly CPF Life payout than FRS?

Since u need to pledge ur property for the difference between FRS & BRS, and final payment to CPF Life is still the same eventually, y does the monthly payout differ?
 

AnTiLooP

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No, only interest in RA as of now.

Keyword: as of now

ok but just to clarify, does it then refer to the interest earned in the RA account only?

for example, the interest monies earned from 55-60, 5 years worth of interest since converting to the RA account ?
 

limpoop

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ok but just to clarify, does it then refer to the interest earned in the RA account only?

for example, the interest monies earned from 55-60, 5 years worth of interest since converting to the RA account ?

Last year I went to CPF and asked this question, here is an example what will happen (if wrong please correct me):

Just before 55:
OA $90,000
SA $150,000

At 55:
OA $74,000
SA $0
RA $166,000 (FRS)

You can withdraw all from OA & SA anytime, cannot touch RA.

If you don't touch OA & SA, at 60:

OA $84,000 ($74,000 + est interests)
SA $0
RA $202,000 (FRS + est interests)

You can only withdraw all from OA & SA anytime, cannot touch RA.
 

koja6049

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ok but just to clarify, does it then refer to the interest earned in the RA account only?

for example, the interest monies earned from 55-60, 5 years worth of interest since converting to the RA account ?

The RA account is not created until you reach 55 years old. So it means at the point when RA is created, all interest earned from there onwards cannot be taken, even if it overshoots your brs
 

koja6049

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does anyone know why is that for BRS, we will get lesser monthly CPF Life payout than FRS?

Since u need to pledge ur property for the difference between FRS & BRS, and final payment to CPF Life is still the same eventually, y does the monthly payout differ?

Think of it as an endowment. You put less money in the endowment, you get less payout per month.

The value of your property does not form part of the endowment. If it does then the government has the right to take back your property when you die, which you don't really want ;)
 

BBCWatcher

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does anyone know why is that for BRS, we will get lesser monthly CPF Life payout than FRS?
Simple: the BRS is half the FRS. With a smaller principal, the monthly life annuity benefit is lower.

The property pledge is not an immediate pledge of additional principal to the CPF LIFE annuity specifically. It's a pledge to yourself, paid in the future into your CPF account balance.
 

BBCWatcher

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The value of your property does not form part of the endowment. If it does then the government has the right to take back your property when you die, which you don't really want ;)
Well, maybe you do! That's called a reverse mortgage paid as an immediate (or deferred) life annuity. It'd be an interesting CPF LIFE option for some.
 

nautilus

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Last year I went to CPF and asked this question, here is an example what will happen (if wrong please correct me):

Just before 55:
OA $90,000
SA $150,000

At 55:
OA $74,000
SA $0
RA $166,000 (FRS)

You can withdraw all from OA & SA anytime, cannot touch RA.

If you don't touch OA & SA, at 60:

OA $84,000 ($74,000 + est interests)
SA $0
RA $202,000 (FRS + est interests)

You can only withdraw all from OA & SA anytime, cannot touch RA.
Thanks for the explanation.

What happens if you have $249k (ERS) in RA, $100k in SA and $0 in OA. Can you touch the $100k in SA and can you have the option of leaving it in SA?
 

royalmix

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does anyone know why is that for BRS, we will get lesser monthly CPF Life payout than FRS?

Since u need to pledge ur property for the difference between FRS & BRS, and final payment to CPF Life is still the same eventually, y does the monthly payout differ?
u pledge property so u can withdraw excess of FRS over BRS, so what goes to CPF Life is BRS, of course less money then payout from CPF Life will be less
 

limpoop

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Anyone knows after 55, say you have $74,000 in OA+SA, how many times you can withdraw in a year until zero?
 

limpoop

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Thanks for the explanation.

What happens if you have $249k (ERS) in RA, $100k in SA and $0 in OA. Can you touch the $100k in SA and can you have the option of leaving it in SA?

Yes, you can zero SA and OA anytime, but die die cannot touch RA.

But leaving $100K in SA is a good idea, unless you can get >4%pa outside.

If you have $250K in SA+OA, better to take out and buy those >5%pa bonds :s13:
 

kzonexx

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Simple: the BRS is half the FRS. With a smaller principal, the monthly life annuity benefit is lower.

The property pledge is not an immediate pledge of additional principal to the CPF LIFE annuity specifically. It's a pledge to yourself, paid in the future into your CPF account balance.


Since smaller principal = lower benefit, why do I need to pledge my property then? What happens to this pledged property?
 

limpoop

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Since smaller principal = lower benefit, why do I need to pledge my property then? What happens to this pledged property?

Just an option for those who wanted to withdraw more cash from CPF after 55, remember last time there is no option at all?

If you sell property, the amount + accrued interests will go back to RA.
 

nautilus

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Yes, you can zero SA and OA anytime, but die die cannot touch RA.

But leaving $100K in SA is a good idea, unless you can get >4%pa outside.

If you have $250K in SA+OA, better to take out and buy those >5%pa bonds :s13:
Just make sure you avoid Swiber bonds else you won't get back a cent. ;)
 
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