CPF Questions (minimum sum)

[lcp2000]

For me -

If FRS + top-ups to ERS = CPF Life, no.
If FRS = CPF Life and top-ups to ERS remains in RA, yes.

So I guess you are going to top up RA after buying CPF LIFE.


That's different from me.

My Plan is

Top up up to ERF at the age of 55
Then on subsequent years, I will continue to top up if there is available top up limit.
At age 65 - opt for CPF LIFE Standard and defer to age 70.
Will continue to top up from age 66 up to age 70 and buy extra annuity.

 

[cybercom8]

this is really confusing

 

[henrylbh]

So I guess you are going to top up RA after buying CPF LIFE.


That's different from me.

My Plan is

Top up up to ERF at the age of 55
Then on subsequent years, I will continue to top up if there is available top up limit.
At age 65 - opt for CPF LIFE Standard and defer to age 70.
Will continue to top up from age 66 up to age 70 and buy extra annuity.

That's up to individual to decide.

If all RA, including top-ups to ERS goes to CPF Life at the point of choosing CPF Life plan, then you are merely placing more in a betting pool in which some must lose for some to gain.

It would be more palatable if top-ups to ERS remains in RA when one chooses the CPF Life plan with FRS. But the answers you got from CPFB is not clear on this and also it does not say the period over which the amount in RA can be withdraw (as AMP) after choosing CPF Life plan.

 

[windwaver]

Hmm.....in this case, what's the best way to maximize money for retirement?

Top up SA to max then what else?

 

[henrylbh]

Hmm.....in this case, what's the best way to maximize money for retirement?

Top up SA to max then what else?

Pray that you outlive your cohort by 20 years

 

[windwaver]

Pray that you outlive your cohort by 20 years

, that's a good one.

Is there any use for OA if I have no more housing loan? Just throw everything into SA before 55 right? Think it's hard to generate more than 4% from OA.

 

[dork32]

It would be more palatable if top-ups to ERS remains in RA when one chooses the CPF Life plan with FRS. But the answers you got from CPFB is not clear on this and also it does not say the period over which the amount in RA can be withdraw (as AMP) after choosing CPF Life plan.

you choose basic, money will remain in ra.

 

[dork32]

, that's a good one.

Is there any use for OA if I have no more housing loan? Just throw everything into SA before 55 right? Think it's hard to generate more than 4% from OA.

use oa to buy second property.

 

[lcp2000]

That's up to individual to decide.

If all RA, including top-ups to ERS goes to CPF Life at the point of choosing CPF Life plan, then you are merely placing more in a betting pool in which some must lose for some to gain.

It would be more palatable if top-ups to ERS remains in RA when one chooses the CPF Life plan with FRS. But the answers you got from CPFB is not clear on this and also it does not say the period over which the amount in RA can be withdraw (as AMP) after choosing CPF Life plan.

May be the following Q&A can help you


Just double confirm

(Q)
1.) Top-up 178,000 at 1st Sept 2019
2.) Apply for CPF-Life
3.) Get Monthly Payout let say $1,000
4.) Next year, Top-up $30,000 at 5th Jan 2020

Q1.) After top-up $30,000 at 5th Jan 2020 and in the following month 1st Feb 2020, she will receive her payout = $30,000 (AMP) + 1000 (CPF Life payout) = $31,000. Am I right?
Q2.) If above statement is correct , how fast do she need to apply Extra Annuity before the amount returned to her in the Form of AMP ? Is it be before 20th Jan 2020?


(A)

Based on the top-up amount that she receive in her RA, we are then able to compute and determine the AMP. She will be able to receive a smaller portion from the top-up amount of $30,000 in the form of AMP and not the lump sum of $30,000. The AMP will be paid on top of the current LIFE payout she is receiving.

If she wish to receive the AMP immediately, she will need to write in to us (via letter/e-Concierge) to request the AMP. Otherwise, she can wait for the AMP during the annual payout review in July.

She can also consider purchasing an additional annuity for her LIFE plan at any time as she wish to, as long as she has made/receive top-ups to her RA.

The difference between requesting AMP and purchasing an additional annuity is that:-
1) The AMP will be paid to the member until the RA savings are exhausted; whereas
2) The member can receive higher LIFE annuity payouts for as long he lives if the member purchases an additional annuity.

 

[lcp2000]

Hmm.....in this case, what's the best way to maximize money for retirement?

Top up SA to max then what else?

To me , annuity is just an insurance that can help me to have constant payout for the rest of my life.
What I worry when I am old , my mind may not be as clear as when I was young. This is for sure I have constant payout no matter how long I live.

Minimum Sum is good only we can leave some fund for our dependents if we see God earlier.
However , if we can live too long and still remain reasonably healthy (we can eat, walk , surge the net but when work, will feel very big pressure) and our fund exhausted, then we will be in trouble since we can not guarantee our son/daughter can help or we are able to work etc.

Anyway , I am single, so I need not to think so much.

 

[windwaver]

use oa to buy second property.

OK, private it means. Bad returns for private property now and too much up front investment.

Other than that, anymore use for OA?

 

[luvalist]

OK, private it means. Bad returns for private property now and too much up front investment.

Other than that, anymore use for OA?

Education loan for the kids' local tertiary education? Investment?

 

[windwaver]

Education loan for the kids' local tertiary education? Investment?

OA investment not easy to get 4% constant now. No need education fees either but that's a good point.

I just dump OA into SA since I don't use it anyway.

 

[henrylbh]

May be the following Q&A can help you


Just double confirm

(Q)
1.) Top-up 178,000 at 1st Sept 2019
2.) Apply for CPF-Life
3.) Get Monthly Payout let say $1,000
4.) Next year, Top-up $30,000 at 5th Jan 2020

Q1.) After top-up $30,000 at 5th Jan 2020 and in the following month 1st Feb 2020, she will receive her payout = $30,000 (AMP) + 1000 (CPF Life payout) = $31,000. Am I right?
Q2.) If above statement is correct , how fast do she need to apply Extra Annuity before the amount returned to her in the Form of AMP ? Is it be before 20th Jan 2020?


(A)

Based on the top-up amount that she receive in her RA, we are then able to compute and determine the AMP. She will be able to receive a smaller portion from the top-up amount of $30,000 in the form of AMP and not the lump sum of $30,000. The AMP will be paid on top of the current LIFE payout she is receiving.

If she wish to receive the AMP immediately, she will need to write in to us (via letter/e-Concierge) to request the AMP. Otherwise, she can wait for the AMP during the annual payout review in July.

She can also consider purchasing an additional annuity for her LIFE plan at any time as she wish to, as long as she has made/receive top-ups to her RA.

The difference between requesting AMP and purchasing an additional annuity is that:-
1) The AMP will be paid to the member until the RA savings are exhausted; whereas
2) The member can receive higher LIFE annuity payouts for as long he lives if the member purchases an additional annuity.

The given answers are not what I am looking for.

Example, this year 2016 at age 55 one has FRS of 161k and decided to top up 80.5k to ERS. Then at age 65 (in 2026), one decided on the CPF Life plan.

Not counting accumulated interest, etc, will they automatically consider the whole amount of ERS as CPF Life plan. Or can one opt for 161k as part of CPF Life plan and leave 80.5k outside the CPF Life plan, i.e. 80.5k is left in RA to be withdrawn (as AMP) over a specified period, like about 20 years under the min sum scheme from age 65?

Then after choosing CPF Life plan, in 2026, one again top up RA, say by 30k. Over how many years will this top-up of 30k be paid over (as AMP)? 20 years or follow the similar calculations under CPF Life. How long can one defer the AMP or no option?

The only clear answer so far is that top-up in RA after CPF Life plan is chosen, remains in RA and can be paid as AMP or annuity.

For me, unlikely I will top up to ERS if it automatically goes into CPF Life, a betting pool where one must lose for another to gain.

 

[lcp2000]

The given answers are not what I am looking for.

Example, this year 2016 at age 55 one has FRS of 161k and decided to top up 80.5k to ERS. Then at age 65 (in 2026), one decided on the CPF Life plan.

Not counting accumulated interest, etc, will they automatically consider the whole amount of ERS as CPF Life plan. Or can one opt for 161k as part of CPF Life plan and leave 80.5k outside the CPF Life plan, i.e. 80.5k is left in RA to be withdrawn (as AMP) over a specified period, like about 20 years under the min sum scheme from age 65?

Then after choosing CPF Life plan, in 2026, one again top up RA, say by 30k. Over how many years will this top-up of 30k be paid over (as AMP)? 20 years or follow the similar calculations under CPF Life. How long can one defer the AMP or no option?

The only clear answer so far is that top-up in RA after CPF Life plan is chosen, remains in RA and can be paid as AMP or annuity.

For me, unlikely I will top up to ERS if it automatically goes into CPF Life, a betting pool where one must lose for another to gain.

I have send your question to CPF Board, see how they say?
I am also curious about it even I will not go for AMP.
Forgive me to send it without asking your permission. I just remembered it.

 

[qhong61]

I have send your question to CPF Board, see how they say?
I am also curious about it even I will not go for AMP.
Forgive me to send it without asking your permission. I just remembered it.

What is Amp?

 

[Trazora]

What is Amp?

Additional monthly payout.

 

[lcp2000]

CPF LIFE is very good for me.
No body want to die earlier.
I believe most of us will fight to live longer with good health .
So that we can see future world.

One thing I am curious the most is
How flexi HDB works after 30 years?
Will the resident age 55 and above able to order food from home via automatic controller (press button and select which type of food ) ?
HaHa, I am such a lazy person.

 

[henrylbh]

I have send your question to CPF Board, see how they say?
I am also curious about it even I will not go for AMP.
Forgive me to send it without asking your permission. I just remembered it.

Glad that you try to clarify my queries with CPF.

Likely part of the answers may still be opaque especially on the period of AMP from top-ups after CPF Life is chosen. They will say you need to apply for APM and they will tell you the amount at the time when you want to start payout.

Under min sum scheme, we would be able to estimate the monthly payout ourselves when we commence draw down as the RA amount is spread over a finite period of about 20 years or remaining period of 20 years from payout eligibility age..

 

[henrylbh]

CPF LIFE is very good for me.
No body want to die earlier.
I believe most of us will fight to live longer with good health .
So that we can see future world.

One thing I am curious the most is
How flexi HDB works after 30 years?
Will the resident age 55 and above able to order food from home via automatic controller (press button and select which type of food ) ?
HaHa, I am such a lazy person.

If everyone lives longer than expected, the monthly payout will be adjusted down as some must lose for some to gain. No two ways about it.

When you buy flexi flat, the min lease must last till you are 95. If you live beyond 95, it up to ah gong to decide.

If you want order food by pressing button, might as well hire a maid who you can press and bathe for you and much more and you can change maid every year to revitalise yourself