Question about CPF Life

[microtek]

I understand that CPF Life payouts start at 65. Let's say after 65 you win $100K in TOTO. Can you put the $100K into your CPF account and thus get larger CPF Life payouts?

 

[BBCWatcher]

I understand that CPF Life payouts start at 65.

They start at age 70, unless you decide to start payouts earlier, as early as age 65. It’s generally a good idea to defer payouts to age 70 if you can afford it, in my view.

CPF LIFE payouts don’t start if your Singapore status ends before you start payouts. For example, if you terminate your citizenship at age 64, you won’t be participating in CPF LIFE.

Let's say after 65 you win $100K in TOTO. Can you put the $100K into your CPF account and thus get larger CPF Life payouts?

Sure, you can top up your Retirement Account whenever you wish, at any time upon reaching age 55 and before your 80th birthday (possibly later also, but definitely before age 80), and as long as your RA is below the Enhanced Retirement Sum (ERS). Only suckers play TOTO, but any legal source of Singapore dollar funds is fine.

If you’re below age 55 there are options available for CPF top-ups (and housing repayments), but pushing the RA up to ERS is only available from age 55 when the RA is formed.

 

[microtek]

Sure, you can top up your Retirement Account whenever you wish, at any time upon reaching age 55 and before your 80th birthday (possibly later also, but definitely before age 80), and as long as your RA is below the Enhanced Retirement Sum (ERS). Only suckers play TOTO, but any legal source of Singapore dollar funds is fine.

So once you top up the $100K cash, assuming you're already getting CPF Life payouts, your monthly payouts will automatically increase accordingly?

 

[BBCWatcher]

So once you top up the $100K cash, assuming you're already getting CPF Life payouts, your monthly payouts will automatically increase accordingly?

Yes, CPF will figure that out automatically before too long. You might still want to contact CPF to ask them to adjust the payout amount, especially if you're in a hurry and want a higher payout to start as soon as possible.

I should point out that the earlier you can top up, the more time there is for that top up to earn attractive interest and to grow. As one example, it's better to top up $50K in January and $50K in July than to wait until July to make one $100K top up.

 

[maple96]

They start at age 70, unless you decide to start payouts earlier, as early as age 65. It’s generally a good idea to defer payouts to age 70 if you can afford it, in my view.

Get your facts right with CPF Life, dun mislead with your own opinion

You can choose to start CPF Life payouts at age 65, ie u will join CPF Life with your choice of CPF Life plan to start the payouts. U can also opt to defer start of payout till 70.

CPF LIFE payouts don’t start if your Singapore status ends before you start payouts. For example, if you terminate your citizenship at age 64, you won’t be participating in CPF LIFE.

If u meet certain criteria defined by CPF, u can opt not to join CPF Life before 70 or apply to exit after joining. BBC is a PR, [COLOR="Red"[B]]so he might[[/B]/COLOR] end his PR at 64 or 69 after earning max interests on his CPF monies and leave Singapore with all those monies! [/COLOR]

Sure, you can top up your Retirement Account whenever you wish, at any time upon reaching age 55 and before your 80th birthday (possibly later also, but definitely before age 80), and as long as your RA is below the Enhanced Retirement Sum (ERS). Only suckers play TOTO, but any legal source of Singapore dollar funds is fine.

If you’re below age 55 there are options available for CPF top-ups (and housing repayments), but pushing the RA up to ERS is only available from age 55 when the RA is formed.

[COLOR="red"]U can topup your RA anytime after 55 so long it does not exceed ERS, there is no end date or age for topping up.

Pls state accurate CPF rules when posting, do no confuse it with your own strong opinions

See my comments in red above!

 

[maple96]

So once you top up the $100K cash, assuming you're already getting CPF Life payouts, your monthly payouts will automatically increase accordingly?

It also depends on which CPF Life Plans u have chosen and your choice of how u want the topup monies to be handled.

There is a difference in how the topup monies will be handled/treated when u topup before or after CPF LIfe payouts starts.

 

[scheng1]

So once you top up the $100K cash, assuming you're already getting CPF Life payouts, your monthly payouts will automatically increase accordingly?

Based on my mother's CPF Life Annual Payout Statement, it shows 3 parts.
1. Annuity Payout (comes from CPF Life)
2. Retirement Account Payout (comes from Retirement Account)
3. Additional Monthly Payout (comes from Retirement Account)

RA payout and AML payout will increase if you top up. Annuity Payout depends on mortality experience, CPF interest rate.

If top up is in 2018, then the increase to RA payout and AML payout starts from July 2019. A letter from CPF will inform of the adjustment in April/May 2019.

 

[maple96]

Based on my mother's CPF Life Annual Payout Statement, it shows 3 parts.
1. Annuity Payout (comes from CPF Life)
2. Retirement Account Payout (comes from Retirement Account)
3. Additional Monthly Payout (comes from Retirement Account)

RA payout and AML payout will increase if you top up. Annuity Payout depends on mortality experience, CPF interest rate.

If top up is in 2018, then the increase to RA payout and AML payout starts from July 2019. A letter from CPF will inform of the adjustment in April/May 2019.

Yes, that's how mthly payouts are paid from different sources if u choose to do nothing. CPF Life payout amt is unlikely to increase but might decrease in the later years, unless u choose to buy additional CPF Life annuity with your topup monies.

Which CPF LIfe Plan is your mum on?

 

[JuniorLion]

Based on my mother's CPF Life Annual Payout Statement, it shows 3 parts.
1. Annuity Payout (comes from CPF Life)
2. Retirement Account Payout (comes from Retirement Account)
3. Additional Monthly Payout (comes from Retirement Account)

RA payout and AML payout will increase if you top up. Annuity Payout depends on mortality experience, CPF interest rate.

If top up is in 2018, then the increase to RA payout and AML payout starts from July 2019. A letter from CPF will inform of the adjustment in April/May 2019.

Can I check with you the following:
(1) is fixed amount, whereas (2) and (3) increases if you top it up but will eventually becomes $0?

 

[BBCWatcher]

Get your facts right with CPF Life, dun mislead with your own opinion

What I posted is factually correct. You are mistaken.

You can choose to start CPF Life payouts at age 65, ie u will join CPF Life with your choice of CPF Life plan to start the payouts. U can also opt to defer start of payout till 70.

If you do nothing, CPF LIFE payouts DO NOT start at age 65. They start at age 70 if you do nothing. Quoting CPF’s retirement guide: “If you have not chosen your CPF LIFE plan by age 70, we will automatically place you on the CPF LIFE Standard Plan and start paying you your monthly payouts.” You have to DO SOMETHING if you want anything else to happen, exactly as I wrote. You must affirmatively choose to start payouts any earlier than age 70, as early as age 65. That’s how it actually works; that’s the fact of the matter.

If u meet certain criteria defined by CPF, u can opt not to join CPF Life before 70 or apply to exit after joining.

If you simply do nothing, CPF LIFE payouts don’t start before age 70.

What do you have in mind as far as “exiting” after payouts start?

BBC is a PR, so he might end his PR at 64 or 69 after earning max interests on his CPF monies and leave Singapore with all those monies!

Oh, is that a fact? No, it’s your wild a** guess. As it happens, that’s not the plan.

U can topup your RA anytime after 55 so long it does not exceed ERS, there is no end date or age for topping up.

No, not always. You can’t do that if your CPF balance is too low to enter CPF LIFE (before age 80), and then you try to top up on or after your 80th birthday to join CPF LIFE quite late. That’s exactly why I wrote that an age 80 limit may apply.

I was quite careful to stick to facts. You weren’t.

 

[maple96]

What I posted is factually correct. You are mistaken.

What cannot even differentiate between facts and your own suggestions

If you do nothing, CPF LIFE payouts DO NOT start at age 65. They start at age 70 if you do nothing. You must affirmatively choose to start payouts any earlier than age 70, as early as age 65. That’s how it actually works; that’s the fact of the matter.

If you simply do nothing, CPF LIFE payouts don’t start before age 70.

Official date when u can start CPF Life is 65, that is the fact I am talking. Before u hit 65, CPF will write to u, u have to right to decide whether to start or not - that's the fact I am referring to. U have the right to decide when u want to start from age 65 to 70 - that's the fact I am talking about

U cannot comprehend what I write lor



What do you have in mind as far as “exiting” after payouts start?

U can read past discussions we had in another thread


Oh, is that a fact? No, it’s your wild a** guess. As it happens, that’s not the plan.

U cannot understand simple english? I wrote "might", it is not a guess that u will, just your own a**

No, not always. You can’t do that if your CPF balance is too low to enter CPF LIFE (before age 80), and then you try to top up on or after your 80th birthday to join CPF LIFE quite late. That’s exactly why I wrote that an age 80 limit may apply.

There is nothing in CPF website to say u cannot topup after 80. The CPF rule is u cannot join CPF Life after 80, it never stop anyone from topping up RA and nobody say u must join CPF Life with your topup monies.
U cannot write simple english to explain this fact

I was quite careful to stick to facts. You weren’t.

Sure, you can top up your Retirement Account whenever you wish, at any time upon reaching age 55 and before your 80th birthday (possibly later also, but definitely before age 80), and as long as your RA is below the Enhanced Retirement Sum (ERS). Only suckers play TOTO, but any legal source of Singapore dollar funds is fine.

.

Pls read again what u wrote about age 80 above!

They start at age 70, unless you decide to start payouts earlier, as early as age 65. It’s generally a good idea to defer payouts to age 70 if you can afford it, in my view.

REad what u wrote about starting payouts above. U should write "U should only start payouts at age 70" then it is your suggestion, by your writing "They start at age 70" u are suggesting it is a CPF rule. So pls be careful how u write lor

Pls read carefully and interpret what I write properly, see my comments in red above

 

[maple96]

What I posted is factually correct. You are mistaken.


If you do nothing, CPF LIFE payouts DO NOT start at age 65. They start at age 70 if you do nothing. Quoting CPF’s retirement guide: “If you have not chosen your CPF LIFE plan by age 70, we will automatically place you on the CPF LIFE Standard Plan and start paying you your monthly payouts.” You have to DO SOMETHING if you want anything else to happen, exactly as I wrote. You must affirmatively choose to start payouts any earlier than age 70, as early as age 65. That’s how it actually works; that’s the fact of the matter.


If you simply do nothing, CPF LIFE payouts don’t start before age 70.

Just wondering what amendments u made after I quoted your previous comments and found it.

Ok u again always like to quote some CPF rules and just apply it to something else

Pls dun just cut and paste then conclude u are right on something else

Yes if u do not choose the CPF Life Plan by age 70, CPF will award u with the CPF Life Standard Plan. But that does not mean u are right about age 65 or that this rule will apply at age 65.

Pls go read the CPF website about what happens a few mths before u hit age 65! Many things will happen which require u to make some decisions

 

[scheng1]

Yes, that's how mthly payouts are paid from different sources if u choose to do nothing. CPF Life payout amt is unlikely to increase but might decrease in the later years, unless u choose to buy additional CPF Life annuity with your topup monies.

Which CPF LIfe Plan is your mum on?

Plus Plan. She is in the earliest batch when there were 4 plans to choose from.

Can I check with you the following:
(1) is fixed amount, whereas (2) and (3) increases if you top it up but will eventually becomes $0?

So far, no change in the amount in (1), (2) and (3) increases year after year due to top up. (2) and (3) unlikely to reach 0. The total annual payout of (2) and (3) are just above the interests earned for the year.

 

[henrylbh]

I understand that CPF Life payouts start at 65. Let's say after 65 you win $100K in TOTO. Can you put the $100K into your CPF account and thus get larger CPF Life payouts?

CPF Life payout starts from age 65, if you decide. Otherwise, CPF payout will start automatically at 70.

You can top up after 65 as long as the top-up amount does not exceed the prevailing ERS amount. You can even top-up RA before 65.

Assuming you strike $100k in toto post 65 and have $X (excluding accumulated interest and assuming no earlier top-ups and have not commenced payout) in RA, you can top up 256,500 (prevailing ERS) less $X.

Top-ups will increase payout but the amount would depend on course of action you take.

 

[henrylbh]

Sure, you can top up your Retirement Account whenever you wish, at any time upon reaching age 55 and before your 80th birthday (possibly later also, but definitely before age 80), and as long as your RA is below the Enhanced Retirement Sum (ERS).

Not true, that you can't top up RA after age 80.

I topped up my father's RA when he was -

82 - 30k
85 - 28k
86 - 16k
87 - 28k
88 - 29k
89 - 30k

 

[BBCWatcher]

My goodness, the lack of basic English reading comprehension is astounding. I particularly call out Maple96 for having significant problems in this area.

 

[henrylbh]

My goodness, the lack of basic English reading comprehension is astounding. I particularly call out Maple96 for having significant problems in this area.

before your 80th birthday (possibly later also, but definitely before age 80)

 

[maple96]

My goodness, the lack of basic English reading comprehension is astounding. I particularly call out Maple96 for having significant problems in this area.

Well it is your bad writing skills that is the root cause, u write to sway people to your opinion instead of explaining accurately the CPF rules. U write to misled, tho u tried hard to qualify in the end. That is bad writing skill.

 

[maple96]

Plus Plan. She is in the earliest batch when there were 4 plans to choose from.



So far, no change in the amount in (1), (2) and (3) increases year after year due to top up. (2) and (3) unlikely to reach 0. The total annual payout of (2) and (3) are just above the interests earned for the year.

Ok, under the old plans, Plus is quite similar to the current Standard CPF Life Plan where 100% of the RA is transferred to the CPF Life Pool at start ( based on info I gathered from google search). The only thing I am not sure is how extra interests on CPF is treated. So #1 is unlikely to change.

Since she topup her RA, she will get payout from there. If she continues to topup, it will be adjusted over the years until the fund is depleted. If she stops topup, it may or may not be adjusted in future. That's #2

# 3 is likely adjustments for interests credited to RA, based on what I see in one case.

That explains the payouts from different sources.

 

[maple96]

before your 80th birthday (possibly later also, but definitely before age 80)

simply spot on! wonder who has bad writing and understanding skills of CPF Life!

My CPF Life and RA are at stake and I have already carefully planned how to make the best use of it as a true blue Singaporean!