CPF Easy Info Thread. :)

[crimsontactics]

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.

It's 5% for your first 60k.

Yes you should be able to.

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[elnewbie]

ALL funds contributed under the RSTU scheme can only be paid out via CPF life monthly payments when you turn 65.

Correct. 12k only.

 

[zuppeur]

If i already hit FRS, would i still be able to do rstu to ers?

 

[crimsontactics]

ALL funds contributed under the RSTU scheme can only be paid out via CPF life monthly payments when you turn 65.

No. Funds contributed under RSTU can be withdrawn at 55.

As long as its any amount above FRS.

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[crimsontactics]

If i already hit FRS, would i still be able to do rstu to ers?

Only at 55.

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[apatheticme]

If i already hit FRS, would i still be able to do rstu to ers?

After 55, and there's no tax relief for topping up from FRS to ERS.

 

[elnewbie]

Yup. Didnt qualify my previous statement.

No. Funds contributed under RSTU can be withdrawn at 55.

As long as its any amount above FRS.

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[crimsontactics]

Yup. Didnt qualify my previous statement.

As in your previous CPF statement?

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[apatheticme]

No. Funds contributed under RSTU can be withdrawn at 55.

As long as its any amount above FRS.

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Technically he is right. You can't contribute more than FRS (or ERS after 55) with RSTU and the retirement sums only increase. Therefore you can never take out monies contributed via RSTU. You can, however, withdraw the money you displaced by doing RSTU.

 

[elnewbie]

There has been a lot of questions raised on RSTU recently.

May I suggest that we also look at VC contributions?

If the tax relief is not a factor, there are advantages in doing a VC contribution over a RSTU. main advantage is that all funds under VC aren't as restricted as RSTU.

Both my parents who are in their 70s are using the VC method instead of RSTU as such funds can be withdrawn in lump sum easily.

 

[elnewbie]

I am aware that as long as you reach the FRS threshold, the excess can be withdrawn. Having said that, as long as one is working, it is more likely that the majority of the SA comes from salary contributions. (Unless one did a huge RSTU contribution early on)

Anyway, have a look at my other post on VC.

As in your previous CPF statement?

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[crimsontactics]

Technically he is right. You can't contribute more than FRS (or ERS after 55) with RSTU and the retirement sums only increase. Therefore you can never take out monies contributed via RSTU. You can, however, withdraw the money you displaced by doing RSTU.

I get what you mean.

Basically, you need to start investing early to take advantage of compound interest.

 

[crimsontactics]

There has been a lot of questions raised on RSTU recently.

May I suggest that we also look at VC contributions?

If the tax relief is not a factor, there are advantages in doing a VC contribution over a RSTU. main advantage is that all funds under VC aren't as restricted as RSTU.

Both my parents who are in their 70s are using the VC method instead of RSTU as such funds can be withdrawn in lump sum easily.

There are some problems with VC that makes it unattractive for me.

Firstly, a mandatory portion of VC goes into my MA, which I don't really like because I won't be able to withdraw it.

Secondly, there is a very low annual cap of VC at around $35k. For people like me who wants to invest a larger sum of money to take advantage of the compounding effect, it's not possible with VC.

 

[crimsontactics]

I am aware that as long as you reach the FRS threshold, the excess can be withdrawn. Having said that, as long as one is working, it is more likely that the majority of the SA comes from salary contributions. (Unless one did a huge RSTU contribution early on)

Anyway, have a look at my other post on VC.

Yes. I did a large deposit into RSTU early on to take advantage of the compounding effect.

 

[Wood41]

The government is smart enough to know
richer would abuse the safety & relatively high
yield of CPF .

Already 1 group wants to maximise the return & the other 'CPF-not-my-$' .

 

[bladez87]

ALL funds contributed under the RSTU scheme can only be paid out via CPF life monthly payments when you turn 65.

yes. so the 35k, how would it be paid out?
https://www.cpf.gov.sg/Assets/members/Documents/RetirementPayouts.pdf

Since I would hit BRS, it means I will be getting 700 - 750, then what about my 35k? how would it be dispersed monthly?

 

[bladez87]

Technically he is right. You can't contribute more than FRS (or ERS after 55) with RSTU and the retirement sums only increase. Therefore you can never take out monies contributed via RSTU. You can, however, withdraw the money you displaced by doing RSTU.

what do you mean by the bold part?

 

[henrylbh]

yes. so the 35k, how would it be paid out?
https://www.cpf.gov.sg/Assets/members/Documents/RetirementPayouts.pdf

Since I would hit BRS, it means I will be getting 700 - 750, then what about my 35k? how would it be dispersed monthly?

With BRS of 83k in your RA, you get monthly payout of 700 to 750. But you actually got 83k+35k in your RA. So your monthly payout would be higher.

 

[crimsontactics]

what do you mean by the bold part?

Means you can only withdraw the interest since you can only top up till FRS

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[crimsontactics]

The government is smart enough to know
richer would abuse the safety & relatively high
yield of CPF .

Already 1 group wants to maximise the return & the other 'CPF-not-my-$' .

Yes.

That's why I worry, SG society too divided.

Poor too poor, rich too rich, govt policy not consistent as they have to cater to both groups.

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