Withdrawal from CPF at 55

bluezzy

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I am planning to opt for the BRS option by pledging my property at 55.

After setting aside the amount for BRS, do I have to withdraw the remaining from CPF account as a lump sum or can I let them continue to be in my SA account to earn the interest and just withdraw $2-3k each month for my expenses? If yes, can this continue until the end of life?

If have to withdraw as lump sum as 55, what would be a good option to save the money in (might be at about 300-400k)? T-bills? Or FD?

TIA
 

sohguanh

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I am planning to opt for the BRS option by pledging my property at 55.

After setting aside the amount for BRS, do I have to withdraw the remaining from CPF account as a lump sum or can I let them continue to be in my SA account to earn the interest and just withdraw $2-3k each month for my expenses? If yes, can this continue until the end of life?

If have to withdraw as lump sum as 55, what would be a good option to save the money in (might be at about 300-400k)? T-bills? Or FD?

TIA
Correct me if I am wrong but opt for BRS is when you cannot meet FRS. So if you can meet FRS and want to go for BRS don't think it is allowed. CPF not stupid. Now for your case you can fulfill FRS but purposely opt for BRS or really cannot fulfill FRS?
 

bluezzy

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Correct me if I am wrong but opt for BRS is when you cannot meet FRS. So if you can meet FRS and want to go for BRS don't think it is allowed. CPF not stupid. Now for your case you can fulfill FRS but purposely opt for BRS or really cannot fulfill FRS?
I think it is allowed eh...up to us to choose. But can only choose BRS if you have a property to pledge.

Purposely opt for BRS cos I don't want a bulk amount of my money to be stuck inside CPF
 

sohguanh

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I think it is allowed eh...up to us to choose. But can only choose BRS if you have a property to pledge.

Purposely opt for BRS cos I don't want a bulk amount of my money to be stuck inside CPF
Ooh so you reach age 55 already is it? Please confirm as a few more years I reaching 55 same as you too. If can I will purposely opt for BRS as I know I can manage my cpf perfectly no need govt nanny!
 

qhong61

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I think it is allowed eh...up to us to choose. But can only choose BRS if you have a property to pledge.

Purposely opt for BRS cos I don't want a bulk amount of my money to be stuck inside CPF
U will regret if u have long lives
 

bluezzy

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Ooh so you reach age 55 already is it? Please confirm as a few more years I reaching 55 same as you too. If can I will purposely opt for BRS as I know I can manage my cpf perfectly no need govt nanny!
Haven't reached...planning for future :grin:

What I read is u need to have property with lease that can last you till 95, then set aside the BRS amount using your OA and SA to form RA. Anything in excess can be withdrawn.

Of course other readers feel free to correct me if I am wrong as well
 

bluezzy

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U will regret if u have long lives
Withdraw out doesn't mean I am going to spend all at one go. That's why I created this thread to see how that money can be put to good us e.g. save in FD to earn interest, etc.

Who can say whether we have short life or long life? What if I never even live past 65 then all my money stuck inside cpf? It can go both ways.
 

sohguanh

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Withdraw out doesn't mean I am going to spend all at one go. That's why I created this thread to see how that money can be put to good us e.g. save in FD to earn interest, etc.

Who can say whether we have short life or long life? What if I never even live past 65 then all my money stuck inside cpf? It can go both ways.
If you got short life means your monies let your offpsring shiok. No need work hard got monies to take and spend who don't want?
 

sohguanh

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no offspring leh?
Means govt take and then put into one big pool (unclaimed monies I think). Last time a newspaper media did mention there is this pool of monies. And whether govt take from this pool for charity or other purposes I am not sure. Anyway when you are gone, you also dunno your monies go where so before you died faster spend finish and pamper oneself!
 

bluezzy

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Means govt take and then put into one big pool (unclaimed monies I think). Last time a newspaper media did mention there is this pool of monies. And whether govt take from this pool for charity or other purposes I am not sure. Anyway when you are gone, you also dunno your monies go where so before you died faster spend finish and pamper oneself!
That's why I want to opt for BRS

Just not sure if the excess monies I need to one shot take out at 55 or can just let it be inside my SA and earn interest..
 

henrylbh

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I am planning to opt for the BRS option by pledging my property at 55.

After setting aside the amount for BRS, do I have to withdraw the remaining from CPF account as a lump sum or can I let them continue to be in my SA account to earn the interest and just withdraw $2-3k each month for my expenses? If yes, can this continue until the end of life?

If have to withdraw as lump sum as 55, what would be a good option to save the money in (might be at about 300-400k)? T-bills? Or FD?

TIA
Can only opt for BRS after RA is created with money from SA and OA. Any balance in SA and OA can be withdrawn any time after RA is formed with FRS. If no enough to form FRS, still any amount at any time, money in RA above BRS can be withdrawn with adequate property pledge/charge.

No wife no offspring, what acumen have you to ensure that money withdrawn from CPF can give better yield, if not for spending.
 
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BBCWatcher

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I am planning to opt for the BRS option by pledging my property at 55.

After setting aside the amount for BRS, do I have to withdraw the remaining from CPF account as a lump sum or can I let them continue to be in my SA account to earn the interest and just withdraw $2-3k each month for my expenses? If yes, can this continue until the end of life?

If have to withdraw as lump sum as 55, what would be a good option to save the money in (might be at about 300-400k)? T-bills? Or FD?
"Opting for the BRS" has little directly to do with your CPF Ordinary, Special, or MediSave Accounts. It has everything to do with your CPF Retirement Account.

On your 55th birthday the CPF Board will create your new Retirement Account and attempt to fund it to the Full Retirement Sum (FRS). First, it will transfer dollars from your Special Account. Then, if necessary, it will transfer dollars from your Ordinary Account. The CPF Board will stop transferring dollars when the Full Retirement Sum is reached or when your Special Account and Ordinary Account are exhausted, whichever comes first.

To some extent you can prevent your Retirement Account from being funded to the Full Retirement Sum through these two options:

1. "Shielding." You can use the CPF Investment Scheme to "shield" Special Account and even Ordinary Account dollars. However, you'll have to leave behind at least $40,000 in your Special Account and at least $20,000 in your Ordinary Account since the CPF Investment Scheme cannot touch those dollars.

2. You can ask the CPF Board to leave some dollars in your Ordinary Account if you're servicing a mortgage from your Ordinary Account.

Assuming your Retirement Account is funded to the Full Retirement Sum "opting for the BRS" means you withdraw dollars from your 4% interest earning Retirement Account. You cannot leave dollars in your RA and "opt for the BRS." The two concepts are the same thing: opting for the BRS means withdrawing dollars from your RA. Do you want to withdraw from a government guaranteed account paying 4% interest? Up to you!

You can withdraw dollars from your RA with or without making a property pledge/charge any time before CPF LIFE payouts start. You can start CPF LIFE payouts as late as age 70, the default. (Or as early as age 65, or any time in between.) You can withdraw up to $5,000 without making a property pledge/charge from age 55. And you can withdraw up to 20% (inclusive of the up to $5,000 prior withdrawal) starting from age 65.
 

sohguanh

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Can only opt for BRS after RA is created with money from SA and OA. Any balance in SA and OA can be withdrawn any time after RA is formed with FRS. If no enough to form FRS, still any amount at any time, money in RA above BRS can be withdrawn with adequate property pledge/charge.
Thanks for sharing but this article I read seem to indicate otherwise ?

It says "When you’re turning 55, you’ll receive a set of documents and forms regarding CPF, and you’ll need to indicate if you’d like to set aside the Basic, Full, or Enhanced Retirement Sum."

So I would infer from above I make the option FIRST before the RA is created logical?

https://blog.seedly.sg/cpf-minimum-retirement-sum/
 

BBCWatcher

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Thanks for sharing but this article I read seem to indicate otherwise ?

It says "When you’re turning 55, you’ll receive a set of documents and forms regarding CPF, and you’ll need to indicate if you’d like to set aside the Basic, Full, or Enhanced Retirement Sum."

So I would infer from above I make the option FIRST before the RA is created logical?
The default is Full Retirement Sum-level funding.

You have the option to increase your new Retirement Account's funding beyond the Full Retirement Sum, up to Enhanced Retirement Sum. You can do that either with a transfer from remaining CPF dollars (starting from anything remaining in your Special Account, then once your SA is exhausted from your Ordinary Account), from cash, or from the Ordinary Account(s) of qualified family members.

You also have the option to reduce, or to prevent the funding of, your Retirement Account (below the Full Retirement Sum) via a property pledge/charge. You can do that before the CPF Board funds your Retirement Account or after.
 

bluezzy

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Can only opt for BRS after RA is created with money from SA and OA. Any balance in SA and OA can be withdrawn any time after RA is formed with FRS. If no enough to form FRS, still any amount at any time, money in RA above BRS can be withdrawn with adequate property pledge/charge.

No wife no offspring, what acumen have you to ensure that money withdrawn from CPF can give better yield, if not for spending.
My half of the property is about 180k, which combined with the BRS, is more than enough to form FRS

I am not sure what will be a better option hence I am asking here, esp people who have opted for BRS and has withdrawn the excess money. Can withdraw a bit a bit each time or must one shot take out all?
 

sohguanh

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The default is Full Retirement Sum-level funding.

You also have the option to reduce, or to prevent the funding of, your Retirement Account (below the Full Retirement Sum) via a property pledge/charge. You can do that before the CPF Board funds your Retirement Account or after.
Above in bold is what I want to know which mean before or close to age 55 I will double confirm with CPF again. I want to go for BRS definitely! I do a better job than CPF OA 2.5 last I check my cpf investment!
 

henrylbh

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Thanks for sharing but this article I read seem to indicate otherwise ?

It says "When you’re turning 55, you’ll receive a set of documents and forms regarding CPF, and you’ll need to indicate if you’d like to set aside the Basic, Full, or Enhanced Retirement Sum."

So I would infer from above I make the option FIRST before the RA is created logical?

https://blog.seedly.sg/cpf-minimum-retirement-sum/
At 55, there is no decision to make to set aside BRS, FRS or ERS. FRS is by default and ERS is optional. If want to set aside BRS, the decision can be delayed.
 

sohguanh

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At 55, there is no decision to make to set aside BRS, FRS or ERS. FRS is by default and ERS is optional. If want to set aside BRS, the decision can be delayed.
Ok so that url is bluffing? Anyway when I reach close to age 55 I will definitely pay a visit to CPF branch to get it all sorted out. Thanks for sharing.
 

BBCWatcher

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I am not sure what will be a better option hence I am asking here, esp people who have opted for BRS and has withdrawn the excess money. Can withdraw a bit a bit each time or must one shot take out all?
You can withdraw a bit at a time. But you might not even need to make a property pledge/charge if you want to "withdraw a bit at a time." You may never reach the withdrawal threshold when a property pledge/charge would be required to withdraw more that what you wish to withdraw.
 
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