If you don't have to pay CPF, would you still do it?

beefjerky

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Example working in a location outside of Singapore? Or is there a limit you would do eg. 20k in OA only for the 3.5% interest?
 
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fr33d0m

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CPF is a good and sustainable retirement scheme subsidised by the government. I don’t see any reason you should not use it even you have no intention to live in Singapore for the rest of your life.
 

Xwzlol

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CPF interest rate is high.
it meant to support you to have little cash when you retired, at least on your olden days you are not begging for money to buy food.

If you are PR (not west malaysia), you can get the money if you surrender your pr status but keep in mind. You must return back the money plus accrued interest (til today) if you want to reapply pr
 

s0crates

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I would do it for the tax relief.

But I want anything above the additional 1% to be investable through cpfis.
 

BBCWatcher

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Example working in a location outside of Singapore?
Yes, in some measure. It’s very attractive.

Or is there a limit you would do eg. 20k in OA only for the 3.5% interest?
You’re not allowed to make a directed contribution into OA only, except as repayment of previously used OA dollars (housing, education), and bonus interest is practically irrelevant operationally to OA, so your hypothetical is moot. There is no such offer on offer.

If you are PR (not west malaysia), you can get the money if you surrender your pr status but keep in mind. You must return back the money plus accrued interest (til today) if you want to reapply pr
That’s another hypothetical (PR, not PR, PR), and it essentially never happens. It’s been over 10 years since PR status was relatively easy to get (or even to buy), but that’s not true any more. The only reasonable, responsible forecast for those who terminate (or lose) PR status, or Singaporean citizenship, is that they’re never getting it back.
 
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amazingneil

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CPF interest rate is high.
it meant to support you to have little cash when you retired, at least on your olden days you are not begging for money to buy food.

If you are PR (not west malaysia), you can get the money if you surrender your pr status but keep in mind. You must return back the money plus accrued interest (til today) if you want to reapply pr

Ya i agree. i would still pay CPF ah cause of the high fixed interest for a more secure and stable future/ retirement. Not bad.

https://blog.moneysmart.sg/budgeting/cpf-retirement-sum-explained/
 

OnePunchMan

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If I don’t have to pay interest for using CPF on housing, I will put almost all my spare cash in it.
 

OngHuatHuat

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I cannot top up anymore, used to do it for the tax relief and additional bonus.
 

cscs3

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Example working in a location outside of Singapore? Or is there a limit you would do eg. 20k in OA only for the 3.5% interest?

Know of a friend still deposit 7K each to his own and wife account. But using their kids name. This is to enable their kids to get 7K income tax rebate. At the same time, they get high interest rate from RA account.

This is actually allowed. Only contribution from immediate family. I did that for my parents too when they are still around. Instead of giving them cash to spend. I deposit the amount to their CPF account, and I get income tax rebate.
 

cscs3

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Yep.
It sucks that there's 181k limit.

I have a same misunderstanding too until I paid a visit to CPF. It turn out even you see 181K in the account, you may actually not hitting the limit yet as your 181K consist of contribution plus a large portion of interest. Interest earned is not counted. They have a record. You can still make a contribution. Excess amount of interest will be transferred to your OA next year.

That's what I understand. Pay then a visit to understand more.
 

OngHuatHuat

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Really? That is a good news

I have a same misunderstanding too until I paid a visit to CPF. It turn out even you see 181K in the account, you may actually not hitting the limit yet as your 181K consist of contribution plus a large portion of interest. Interest earned is not counted. They have a record. You can still make a contribution. Excess amount of interest will be transferred to your OA next year.

That's what I understand. Pay then a visit to understand more.
 

henrylbh

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I have a same misunderstanding too until I paid a visit to CPF. It turn out even you see 181K in the account, you may actually not hitting the limit yet as your 181K consist of contribution plus a large portion of interest. Interest earned is not counted. They have a record. You can still make a contribution. Excess amount of interest will be transferred to your OA next year.

That's something new or you still have misunderstanding on the limit after the visit?

Excess interest will be transferred to OA? That's even newer :s13:
 

item2sell

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CPF is not your money.

Now many Government lackeys come out to preach on topping up CPF.

From what I see. We are in deep sheet.

Pray for our retirement age.
If you are below 30 now. You can forget about touching your CPF
 

polyglob

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LOLZ 10char

CPF is not your money.

Now many Government lackeys come out to preach on topping up CPF.

From what I see. We are in deep sheet.

Pray for our retirement age.
If you are below 30 now. You can forget about touching your CPF
 

OngHuatHuat

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Tried top up yesterday, unable to do so since system indicates no top up available after meeting full retirement sum.
 

Hot_Dog

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Personally no, I prefer liquidity, but I'll probably lose all the money punting the markets at that age, but that is me :s13:
 
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