CPF Retirement Sum Scheme

[assiak71]

It really does depend.
My mum recently made a choice too, based on my recommendation she went for CPF Life Escalating plan. Maybe it's less money for me if she passes early, but I want her to have a fulfilling life all the way to the end if she remains healthy.

Is rss monthly payout higher than cpf life basic?

 

[dork32]

so once the monthly payout starts for old RSS.. the money can "recycle" back to RA account

cannot, based on bbc suggestion, much of it is recycled into oa, which earns 2.5% instead of 4

 

[dork32]

i am not concern with bequest too.. my view is to get as much as early as possible to enjoy the money wwhile still can walk .. at 90+ , how to go holiday and enjoy?

i respect your decision. choose standard on brs and withdraw at 65

 

[dork32]

in this case... one spouse on RSS , the other on cpf life?
can hedge? haha
statistically, who lives longer? male or female?

like tat also may not be very good.
if the one on cpf life die early and the one on rss lives forever, then xiao liao

 

[dork32]

ah.. i see what you mean..
yes, i didnt take account the bequest.
how do we calculate the xirr, taking into the account the bequest?

tangent did something like dat before. it is quite good. i too lazy to do it. hey, maybe i too stupid to do it.

 

[dork32]

i respect your decision. choose standard on brs and withdraw at 65

on the other thread, i am telling mummy to choose basic and delay to 70.

notice how the advice is different for different. different people have different needs, perception. this is why cpf life have evolved into such a complex system

i will not go around tell everyone the escalating on ers and drawing at 70 is the best deal for everyone.

 

[henrylbh]

I am one of those born in 1957 (last cohort on RSS). Yes, the MS was $139k but I subsequently top it up to ERS when the option was available a few years later. Do you think CPF will stretch my payout from 65 to 95, citing the 'extra interest' that was given out as bonuses? I am still on RSS.

As mentioned earlier, your then min sum was $139k and the payout starting 65 is fixed at $1,240 per month which will exhaust your min sum in about 20 years without taking into account the extra interest given.

Though you top up your RA to ERS, the monthly payout would remain the same at $1,240 unless you write in for higher payout. The higher payout would be calculated to exhaust your RA in about 20 years, again without taking into account the extra interest given. The extra interest would stretch the monthly payout beyond 20 years.

 

[henrylbh]

How I interprete the rules : If u start payout at 65, plus 20 years = 85, plus up to 5 years for the interest payout = 90. If u start payout 70, then it will be up to 95.

Only those who qualify can use the CPF RSS calculator. Login with singpass and use the calculator to check for yourself, then share with us.

From what I understand, if he starts payout from 70, the payout will be calculated to exhaust his RA by about 20 years from PEA, i.e. by 85 - without taking into account the extra interest which would stretch payout beyond 85.

 

[henrylbh]

Hi my kin is turning 65 and need to decide RSS or CPF Life soon. Wish to seek advice on which to go for. And resources to read up on for comparison. Thanks.

Since your kin is turning 65 (soon), he is by default under RSS. Anytime from age 65 (to just before 70), he need to apply to commence payout. Otherwise, payout will commence automatically at age 70.

He has the option to convert RSS to CPF Life when he decides to commence payout.

In short, he need not decide RSS or CPF Life soon, unless he decides to commence payout soon. But I if I am not wrong, he can still opt for CPF Life, if he has commenced payout under RSS, but not the other way round.

 

[BBCWatcher]

But I if I am not wrong, he can still opt for CPF Life, if he has commenced payout under RSS, but not the other way round.

I think that’s correct, but that particular decision must be made before age 80. Entry into CPF LIFE is not allowed once you celebrate your 80th birthday. (And there’s some administrative delay, so don’t wait until age 79 and 364 days to make this switch.)

 

[henrylbh]

hi sir, i think this is quite similar situation to mine.
how much did cpf say you are getting per mth? from the letter sent to you?
our letter says ~ 1012 for 26 years (70-96) for old RSS.
but cpf life is ~1085 , based on the online cpf calculator.
both start from birthday payout.

what are you plans? to stay or change?
and why?

advice? stay on this thread..

There must be some misunderstanding. You need to say whether he has met the min sum at 55 to get 1,012 and whether he had top-up above his cohort min sum. Assuming he has met the min sum at 55, he would be getting the original (fixed for each cohort) payout from 65. Even if he decided to start payout at 70, the original payout would apply and the payout would last much longer than 20 years as CPF indicated that each deferred year would extend the payouts by about 2 additional years.

 

[henrylbh]

As requested, I logged into CPF using SingPass.

Under Calculator>Retirement>Retirement Sum Scheme (RSS) Payout Calculator, appears I cannot access the RSS Calculator. The message I received on clicking:

"Please email CPF Board at retirement@cpf.gov.sg to enquire further about RSS payouts instead"

.any thoughts?

(I just turn 61 in Dec 2018)

Based on my records, payout under RSS is indicated as follows (if min sum is met at age 55).

55 from - Payout - Min Sum
1 Jul 2001 $537 ($70,000)
1 Jul 2002 $575 ($75,000)
1 Jul 2003 $613 ($80,000)
1 Jul 2004 $668 ($84,500)
1 Jul 2005 $711 ($90,000)
1 Jul 2006 $750 ($94,600)
1 Jul 2007 $790 ($99,600)
1 Jul 2008 $910 ($106,000)
1 Jul 2009 $1,040 ($117,000)
1 Jul 2010 $1,100 ($123,000)
1 Jul 2011 $1,170 ($131,000)
1 Jul 2012 $1,240 (139,000)

Those turning age 55 from 1 Jan 2013 (born 1958) payout depends on CPF Life, gender, plan etc.

For RSS, monthly payout based other than the min sum (whether RA is more or less), one need to write in to ask as the Calculator is no longer available to give an estimate. If you have an idea of how they derive the above payout for each min sum, you can estimate the payout yourself.

FRS -
1 Jan 2014 $148,000
1 Jan 2015 $155,000
1 Jan 2016 $161,000
1 Jan 2017 $166,000
1 Jan 2018 $171,000
1 Jan 2019 $176,000
1 Jan 2020 $181,000

 

[henrylbh]

I think that’s correct, but that particular decision must be made before age 80. Entry into CPF LIFE is not allowed once you celebrate your 80th birthday. (And there’s some administrative delay, so don’t wait until age 79 and 364 days to make this switch.)

I think, you also think? Actually no need to think. It's correct lah.

Might as well add that CPF Life is available only to those born in or after 1931 and may join CPF LIFE between age 55 and 80. And that your RA balance will determine whether you can opt for CPF Life.

 

[henrylbh]

the part i dont understand is why the standard is higher than rss monthly payout, if standard last for eternity. while rss last for a fixed 26 yrs only.
i thgt the arguement here is that rss will be more, coz it lasts "shorter" years of payout?

At the start, how could any CPF Life Plan give more payout than RSS.

The last cohort with min sum of $139k will be getting $1240 from age 65.

The first batch with FRS of $148k will be getting (from age 65) -

SP btw $1033 and 1128
BP btw $948 and 1039
EP $1,100 (average ?)

 

[henrylbh]

on the other thread, i am telling mummy to choose basic and delay to 70.

notice how the advice is different for different. different people have different needs, perception. this is why cpf life have evolved into such a complex system

i will not go around tell everyone the escalating on ers and drawing at 70 is the best deal for everyone.

I will pledge my property for BRS and commence payout under basic soonest possible ...... but

 

[Battery Operator]

As mentioned earlier, your then min sum was $139k and the payout starting 65 is fixed at $1,240 per month which will exhaust your min sum in about 20 years without taking into account the extra interest given.

Though you top up your RA to ERS, the monthly payout would remain the same at $1,240 unless you write in for higher payout. The higher payout would be calculated to exhaust your RA in about 20 years, again without taking into account the extra interest given. The extra interest would stretch the monthly payout beyond 20 years.

That's something I will go visit the CPF officer to clarify. Thanks for the headsup.

 

[henrylbh]

That's something I will go visit the CPF officer to clarify. Thanks for the headsup.

If you going to see them, please clarify with them whether you can subsequently pledge your property for BRS AFTER topping RA to ERS.

 

[maple96]

If you going to see them, please clarify with them whether you can subsequently pledge your property for BRS AFTER topping RA to ERS.

Based on this CPF rule, it should be possible but double confirm with CPFB:

Q I am on CPF LIFE. Can I withdraw from my Retirement Account if I own a property?

A If you own a property, you may withdraw your Retirement Account savings (excluding interest earned, any government grants received and top-ups made under the Retirement Sum Topping-up scheme) above the Basic Retirement Sum (applicable to you) that have not been deducted as annuity premium for CPF LIFE, provided you have met the eligibility criteria. You can refer to our Retirement Sum Scheme FAQ for more information on withdrawal of Retirement Account savings based on sufficient charge/pledge.

Withdrawing your Retirement Account savings will reduce your monthly payouts from your payout eligibility age.

(disclaimer: I am not pledging)

 

[maple96]

As mentioned earlier, your then min sum was $139k and the payout starting 65 is fixed at $1,240 per month which will exhaust your min sum in about 20 years without taking into account the extra interest given.

Though you top up your RA to ERS, the monthly payout would remain the same at $1,240 unless you write in for higher payout. The higher payout would be calculated to exhaust your RA in about 20 years, again without taking into account the extra interest given. The extra interest would stretch the monthly payout beyond 20 years.

I just read this rule: for topups under RSS u have a choice to increase payout or increase duration, but under CPF Life only increase payout

 

[maple96]

I think, you also think? Actually no need to think. It's correct lah.

Might as well add that CPF Life is available only to those born in or after 1931 and may join CPF LIFE between age 55 and 80. And that your RA balance will determine whether you can opt for CPF Life.

No need to think, read this CPF rule:

Q Is there a minimum amount I need before I can join CPF LIFE?

A There is no minimum amount for joining CPF LIFE. However, the amount of retirement sum which you have set aside in your Retirement Account for CPF LIFE would affect your monthly payout amount. If you join with more savings, you will receive a higher payout.