CPF Accounts Value thread

[madtari]

You don't need 5mths bonus to hit AW ceiling. If ur earning 10k, you only need 2mths excluding aws.

But I have to admit it's not easy for most ppl to hit 10k in their career life (less those ppl from EDWM).

Maybe 6k per month is normal but 5 months bonus is not but good for you.

 

[terence2112]

Spot on by dork... just to share my case (BTW I won't be able to hit FRS by 40, but if I'm a scholar and joined my workplace right after graduation, I should be able to).

I'm 37+yo now, currently on MSO scheme, where I will get an extra of $140 per mth into my MA. I've also hit my CPF OW & AW ceiling, so I'm getting the max contribution into my CPF accounts. As my MA was maxed out, I was getting $1099.70 per mth into my SA based on OW alone (excluding bonus). Total in 2018, my SA increased by $21,836 (inclusive of $4.19k interest). As of 31 Dec 2018, my SA was $101k. By the time I reached 40yo, my SA should have more than $155k.

So ya... overflow of MA and compounded interest will make a hell lot of difference over the long term and for a high flyer who hit CPF ceiling early in his/her career, it is certainly possible to hit FRS by 40yo w/o top up.

Wow, you have a good job.
I’m 33 this year, humble cpf savings, but I top up my Medisave to the ceiling in Dec 2018 to reach $54,500 then, and additional $2700 to reach $57,200.

So will monitor and see how the MA overflow will create wonders

 

[THEMIKOS]

Always had this impression after reading this thread and its sharings that if one opts into ERS, and passes on at say 70 years old, the bequest is 0 to family. Couldn't search through all the threads so i checked CPF Life via google but what it is stated at CPF life is that ANY plan will have the balance of unused annuity premium without savings and RA savings will be returned to family. I am confused or did i read and understand wrongly? Any one can clarify? Sorry because i am sure this has been asked repeatedly.

 

[SKenny]

Always had this impression after reading this thread and its sharings that if one opts into ERS, and passes on at say 70 years old, the bequest is 0 to family. Couldn't search through all the threads so i checked CPF Life via google but what it is stated at CPF life is that ANY plan will have the balance of unused annuity premium without savings and RA savings will be returned to family. I am confused or did i read and understand wrongly? Any one can clarify? Sorry because i am sure this has been asked repeatedly.

Us the CPF LIFE Estimator to estimate teh bequest.

https://www.cpf.gov.sg/eSvc/Web/Schemes/LifePayoutEstimator/LifePayoutEstimatorInputs

 

[THEMIKOS]

Thank you very much

Us the CPF LIFE Estimator to estimate teh bequest.

https://www.cpf.gov.sg/eSvc/Web/Schemes/LifePayoutEstimator/LifePayoutEstimatorInputs

 

[dork32]

Spot on by dork... just to share my case (BTW I won't be able to hit FRS by 40, but if I'm a scholar and joined my workplace right after graduation, I should be able to).

I'm 37+yo now, currently on MSO scheme, where I will get an extra of $140 per mth into my MA. I've also hit my CPF OW & AW ceiling, so I'm getting the max contribution into my CPF accounts. As my MA was maxed out, I was getting $1099.70 per mth into my SA based on OW alone (excluding bonus). Total in 2018, my SA increased by $21,836 (inclusive of $4.19k interest). As of 31 Dec 2018, my SA was $101k. By the time I reached 40yo, my SA should have more than $155k.

So ya... overflow of MA and compounded interest will make a hell lot of difference over the long term and for a high flyer who hit CPF ceiling early in his/her career, it is certainly possible to hit FRS by 40yo w/o top up.

i tot you mentioned that are on a pension scheme.

i also on mso. getting extra medisave topup for many years.

you are right that initial accumulation of sa is very slow. assuming you start work at 26, you took 11 years to accumulatae 100k.
you will take just another 3years to accumulate 55k. this is very true due to the higher interest amoount and overflow from ma to sa

 

[madtari]

Pension scheme also have cpf contribution, but lesser amount. But once u hit the ceiling (7.5k instead of 6k), u will still hit the same ceiling.

The pension scheme nowadays is nowhere similar to the old ones. Old pension schemes fully cover ur medical bills after retirement. Now they give u MSO and tell u buy ur own insurance cos pension will no longer cover any medical bills. There's an earlier scheme which will co-pay medical bills I think is call CPW.

i tot you mentioned that are on a pension scheme.

i also on mso. getting extra medisave topup for many years.

you are right that initial accumulation of sa is very slow. assuming you start work at 26, you took 11 years to accumulatae 100k.
you will take just another 3years to accumulate 55k. this is very true due to the higher interest amoount and overflow from ma to sa

 

[JuniorLion]

i tot you mentioned that are on a pension scheme.

i also on mso. getting extra medisave topup for many years.

you are right that initial accumulation of sa is very slow. assuming you start work at 26, you took 11 years to accumulatae 100k.
you will take just another 3years to accumulate 55k. this is very true due to the higher interest amoount and overflow from ma to sa

Pension scheme also have cpf contribution, but lesser amount. But once u hit the ceiling (7.5k instead of 6k), u will still hit the same ceiling.

The pension scheme nowadays is nowhere similar to the old ones. Old pension schemes fully cover ur medical bills after retirement. Now they give u MSO and tell u buy ur own insurance cos pension will no longer cover any medical bills. There's an earlier scheme which will co-pay medical bills I think is call CPW.

Rich civil servants.

 

[dork32]

Pension scheme also have cpf contribution, but lesser amount. But once u hit the ceiling (7.5k instead of 6k), u will still hit the same ceiling.

The pension scheme nowadays is nowhere similar to the old ones. Old pension schemes fully cover ur medical bills after retirement. Now they give u MSO and tell u buy ur own insurance cos pension will no longer cover any medical bills. There's an earlier scheme which will co-pay medical bills I think is call CPW.

i always thot that pension scheme will have a reduction in cpf contribution. yours do not seem to have that

i always thot that garmen pension scheme is gone. it is still around

 

[madtari]

It is indeed reduced. Instead of 17%+20% employer/employee contribution, we only have 12.75%+15%. But the final ceiling in terms of $ contribution into CPF is the same between pensioner n non-pensioner. So once u reach the OW ceiling, there's no difference.

The pension scheme was removed for most of the services in govt, with political appointment holders being the last, but that doesn't mean it is completely abolished.

i always thot that pension scheme will have a reduction in cpf contribution. yours do not seem to have that

i always thot that garmen pension scheme is gone. it is still around

 

[dork32]

It is indeed reduced. Instead of 17%+20% employer/employee contribution, we only have 12.75%+15%. But the final ceiling in terms of $ contribution into CPF is the same between pensioner n non-pensioner. So once u reach the OW ceiling, there's no difference.

The pension scheme was removed for most of the services in govt, with political appointment holders being the last, but that doesn't mean it is completely abolished.

wow perm sec ah..

and with your 12,75 +15, you can still hit frs? you must be quite powerful.

no wonder you can hit 200k

 

[madtari]

No, I'm far from PS calibre. 200k includes special bonus (similar to teacher's connect plan). I did mention in another thread my annual is only 150k. PS easily should have 350k I believe.

wow perm sec ah..

and with your 12,75 +15, you can still hit frs? you must be quite powerful.

no wonder you can hit 200k

 

[cscs3]

Wow, you have a good job.
I’m 33 this year, humble cpf savings, but I top up my Medisave to the ceiling in Dec 2018 to reach $54,500 then, and additional $2700 to reach $57,200.

So will monitor and see how the MA overflow will create wonders

Still very young and has many potential.

 

[cscs3]

It is indeed reduced. Instead of 17%+20% employer/employee contribution, we only have 12.75%+15%. But the final ceiling in terms of $ contribution into CPF is the same between pensioner n non-pensioner. So once u reach the OW ceiling, there's no difference.

The pension scheme was removed for most of the services in govt, with political appointment holders being the last, but that doesn't mean it is completely abolished.

I remember from a friend (teacher), several years back they are ask to convert pension scheme to CPF. But some choose to stay with pension scheme. Guess may be it is gone by now?

My understanding is pension scheme is you have to work till retired to enjoy it. (ie your pension is gone if you quit before retired?)

 

[tangent314]

Pension scheme also have cpf contribution, but lesser amount. But once u hit the ceiling (7.5k instead of 6k), u will still hit the same ceiling.

The pension scheme nowadays is nowhere similar to the old ones. Old pension schemes fully cover ur medical bills after retirement. Now they give u MSO and tell u buy ur own insurance cos pension will no longer cover any medical bills. There's an earlier scheme which will co-pay medical bills I think is call CPW.

The advantage of CPF over the older pension schemes is perfect portability. Maybe that's why we see a lot more job hopping these days.

 

[madtari]

Ya... teacher no more pension. Those who chose to stick with pension better make sure they retire then only they can get it. If u resign, u will lose ur pension unless it's on medical ground or death in service after hitting min years in service.

I remember from a friend (teacher), several years back they are ask to convert pension scheme to CPF. But some choose to stay with pension scheme. Guess may be it is gone by now?

My understanding is pension scheme is you have to work till retired to enjoy it. (ie your pension is gone if you quit before retired?)

 

[madtari]

That's true. Maybe also due to different mindset from youngsters. There's no job loyalty to speak of now.

The advantage of CPF over the older pension schemes is perfect portability. Maybe that's why we see a lot more job hopping these days.

 

[JuniorLion]

That's true. Maybe also due to different mindset from youngsters. There's no job loyalty to speak of now.

Oh really; if you don't have your pension package and your incentive plan, would you stay?

 

[BBCWatcher]

Maybe also due to different mindset from youngsters.

How about the employers? Loyalty is a two way street. If more employers are more often treating employees as disposable commodities rather than as genuine long-term partners — and I think that’s a fair characterization of recent history — then employees properly shouldn’t be loyal.

 

[madtari]

I'm speaking in general terms. If you do interviews, you would have noticed that the younger generations tend to ask "How can I benefit/learn from your organisation/company" rather than emphasize on "How can I contribute to your organisation/company". Turn-over rates are also clearly higher in the younger employee age group. What I've said is backed by statistics from HR.

So back to your qns on me. Having been thru MNC, Stat Board (Public Service) and Civil service, all I can say is I certainly treasure my well-paying job with good work-life balance and yet I find it meaningful, challenging and interesting. So ya, even w/o the pension and incentive plan, I do plan to stay on. When I first applied for this job, I don't even know that there will be such benefits! And now that I know I'm having these benefits, there is one less reason for me to leave! So yeah, its certainly a pull factor for employee retention.

Oh really; if you don't have your pension package and your incentive plan, would you stay?