CPF Easy Info Thread. :)

[crimsontactics]

what if you have excesses more than FRS and less than ERS by means of top up? Those excess cannot be withdrawn at 55, can they be withdrawn at 65? What if you pass on before reaching 65?

Everything above FRS can be withdrawn at 55.

 

[henrylbh]

what if you have excesses more than FRS and less than ERS by means of top up? Those excess cannot be withdrawn at 55, can they be withdrawn at 65? What if you pass on before reaching 65?

You must first know that you can't top up SA if it meets the prevailing FRS.

 

[bladez87]

You must first know that you can't top up SA if it meets the prevailing FRS.

yes but the earlier RSTU will contribute to the interest ma...

 

[crimsontactics]

yes but the earlier RSTU will contribute to the interest ma...

You can withdraw those interest above FRS.

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[bladez87]

What if the sa balance is between BRS and ERS? This balance includes the RSTU.

 

[crimsontactics]

What if the sa balance is between BRS and ERS? This balance includes the RSTU.

Anything above FRS can be withdrawn.

Btw BRS and FRS, only compulsory contribution or VC and their interest can be withdrawn.

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[elnewbie]

If SA balance is between BRS and FRS, BRS + RSTU funds cannot be withdrawn in lump sum. Anything above this can be withdrawn via property pledge.

If SA is above FRS, all funds in excess of FRS can be withdrawn even if part of the excess comes from RSTU top ups. In reality, this is unlikely to happen unless your RSTU top ups are much more than your salary contributions.

What if the sa balance is between BRS and ERS? This balance includes the RSTU.

 

[crimsontactics]

If SA balance is between BRS and FRS, BRS + RSTU funds cannot be withdrawn in lump sum. Anything above this can be withdrawn via property pledge.

If SA is above FRS, all funds in excess of FRS can be withdrawn even if part of the excess comes from RSTU top ups. In reality, this is unlikely to happen unless your RSTU top ups are much more than your salary contributions.

Must start early...

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[elnewbie]

Correct. I only started in my mid 30s. Am late into this game. How old are you btw?

Must start early...

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[crimsontactics]

Correct. I only started in my mid 30s. Am late into this game. How old are you btw?

I'm 25.

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[elnewbie]

If I'm 25, first step is to max out my VC contributions and medisave top ups.

While VC contributions are not tax deductible, it helps to build up the base.

As to why medisave top ups? That's cos once you hit the BHS, ALL excess then goes into SA up to FRS. And these excess funds are both tax deductible and will not be locked up unlike RSTU.

It doesn't make sense to do RSTU at such a young age due to the low tax rate for most folks who are just starting out.

I'm 25.

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[crimsontactics]

If I'm 25, first step is to max out my VC contributions and medisave top ups.

While VC contributions are not tax deductible, it helps to build up the base.

As to why medisave top ups? That's cos once you hit the BHS, ALL excess then goes into SA up to FRS. And these excess funds are both tax deductible and will not be locked up unlike RSTU.

It doesn't make sense to do RSTU at such a young age due to the low tax rate for most folks who are just starting out.

But BHS cannot redraw leh...

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[elnewbie]

BHS cam be used for many things. Maternity, Shield plans etc.

Eventually, your MA account will hit the limit from funds originating from your salary. The question is whether sooner or later.

But BHS cannot redraw leh...

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[crimsontactics]

BHS cam be used for many things. Maternity, Shield plans etc.

Eventually, your MA account will hit the limit from funds originating from your salary. The question is whether sooner or later.

I hit FRS first bah...

Still long way to go...

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[bladez87]

If SA balance is between BRS and FRS, BRS + RSTU funds cannot be withdrawn in lump sum. Anything above this can be withdrawn via property pledge.

If SA is above FRS, all funds in excess of FRS can be withdrawn even if part of the excess comes from RSTU top ups. In reality, this is unlikely to happen unless your RSTU top ups are much more than your salary contributions.

When you said BRS + RSTU cannot be withdrawn in lump sum, then how can the RSTU be withdrawn?

So now this year BRS is 83k. FRS is 166k. If I have 130k inside SA, including 35k RSTU made over 5 years. Since I do not hit FRS, what happens to my 35k? I think I will be able to withdraw 130 - 35 - 83 =12?

 

[crimsontactics]

When you said BRS + RSTU cannot be withdrawn in lump sum, then how can the RSTU be withdrawn?

So now this year BRS is 83k. FRS is 166k. If I have 130k inside SA, including 35k RSTU made over 5 years. Since I do not hit FRS, what happens to my 35k? I think I will be able to withdraw 130 - 35 - 83 =12?

Yes.

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[elnewbie]

Correct. 12k only.

When you said BRS + RSTU cannot be withdrawn in lump sum, then how can the RSTU be withdrawn?

So now this year BRS is 83k. FRS is 166k. If I have 130k inside SA, including 35k RSTU made over 5 years. Since I do not hit FRS, what happens to my 35k? I think I will be able to withdraw 130 - 35 - 83 =12?

 

[bladez87]

Correct. 12k only.

Then what happens to my 35k?

O man, I need to contribute 24 years to hit the 166k now. Assuming 4% growth vs 3% inflation, if I start now, I should be able to hit 166 at 55yo.

 

[a4973]

Then what happens to my 35k?

O man, I need to contribute 24 years to hit the 166k now. Assuming 4% growth vs 3% inflation, if I start now, I should be able to hit 166 at 55yo.

doesn't the FRS increase each year?
its 166k this year, by your 55th it would have gone up

 

[bladez87]

Yes. But because I already have 20k inside. And that the sa growth rate is 4% while the inflation of FRS is 3%,i should be able to hit if I contribute 7k yearly from now.