CPF - OA (or cash) vs RA for beyond 65

[AlanKohCD]

Cpf life lah… eg. 176k FRS at 55 after ten years RA will have about 260523 ( 10 years 4% interest ) . Then I opt BRS at 65, 88k i can withdraw while the balance 172523 go to cpf life and u start to get ur monthly payout.

In this case at age 65. You can use this $88k to Top up your MA to max because at age 65 the MA will not increase yearly and the interest of 4% will go to your OA and you can withdraw as cash.

 

[hmyoth]

In this case at age 65. You can use this $88k to Top up your MA to max because at age 65 the MA will not increase yearly and the interest of 4% will go to your OA and you can withdraw as cash.

Yes. Provided there is room to top up, the most is after the elder shield n medishield premium deduction then top up but few K only. I will stick to FRS basic plan.

 

[The_Davis]

Upz for more opinions

 

[The_Davis]

Cpf life lah… eg. 176k FRS at 55 after ten years RA will have about 260523 ( 10 years 4% interest ) . Then I opt BRS at 65, 88k i can withdraw while the balance 172523 go to cpf life and u start to get ur monthly payout.

Can confirm with CPFB if really can withdraw at age 65?

@BBCWatcher

 

[hmyoth]

Can confirm with CPFB if really can withdraw at age 65?

@BBCWatcher

https://www.cpf.gov.sg/service/arti...-retirement-account-savings-using-my-property

https://www.cpf.gov.sg/member/contact-us/call-us

u got hand phone ? Can call hotline to ask .

 

[8zaoyu]

Yes, of cos interest will be added from 55 til 65 based on the amount in ur RA. if u r on FRS at 55 like my case, after 10 years at 65, my RA will have one lump sum including the 10 years interest. Then i decided to opt for BRS at 65 before the cpf life payout starts, I can only withdraw BRS from the lump sum. The rest goes to cpf life. U can’t touch the interest earned. U can opt for BRS anytime btw 55 to 65/70 before cpf life starts.

people opt for BRS just before 65 because minimal future draw-down payouts then bequest more to nominated loved ones. But if your nominated loved ones are faring well, why lower your own payouts - I would still opt for Standard max payout from 70 or near 70 since still may have half time re- employed btw 65 to 68/69/70 nowadays

 

[8zaoyu]

Cpf life lah… eg. 176k FRS at 55 after ten years RA will have about 260523 ( 10 years 4% interest ) . Then I opt BRS at 65, 88k i can withdraw while the balance 172523 go to cpf life and u start to get ur monthly payout.

CPFB had already estimated for your 176k when 55 yo to get about 1.2-1.3k for Standard, you don't want this for Life from 65 till 85/95 ? Want lower payouts then how long can you become "monitor lizard" for your saved OA or cash savings? Exhausting, right, especially after 70 yo where every 5 years' good health means can chiong another 5 years. Everyday if got critical illness, may not live pass 5 months, don't dream still have 5 more good years ahead.

 

[dontwastetime]

OA/cash
- can start withdraw from 55
- interest can see from 55 - dead.
- can keep capital.
- dont need to share in common pool
- need to ownself invest to get more than 2.5/3.5%

RA:
- need to wait till 65 to see some $
- need to live till 88+ to fully break even or gain
- interest only from 55 - 65
- interest earned on cpf life premium (after 65-70) is shared in common pool
- unused premium will go to beneficiaries when dead

based on above points, which is better option?

U sure 55 can withdraw all boh?

If not then pointless

 

[Senfai]

quite confused on the whole “earn interest on premium common pool” concept.

isn’t it just pay a premium (one-time fee), you “buy in” to the annuity.

the board invests using your premium, generates returns to the common pool, and you are paid from that pool?

the return is similar but not exactly your interest?

 

[iceblendedchoc]

Best dun give more to common pool than the mandate necessary. 4% returns is easily to obtain

 

[qhong61]

Best dun give more to common pool than the mandate necessary. 4% returns is easily to obtain

Where to obtain

 

[archie7]

i would rather take the first option

 

[The_Davis]

Upz for more experts

 

[The_Davis]

quite confused on the whole “earn interest on premium common pool” concept.

isn’t it just pay a premium (one-time fee), you “buy in” to the annuity.

the board invests using your premium, generates returns to the common pool, and you are paid from that pool?

the return is similar but not exactly your interest?

Hmm….

 

[The_Davis]

Btw, if got $500k in OA, need. $500000/$2000=250 months to finish drawing out Sia if assume one month draw $2000…

 

[0218crawford]

i plan to leave just the BRS in my RA next time with prop pledge.

the rest all samma take out.

2.5% to 4% ish a complete waste of good $.

 

[The_Davis]

i plan to leave just the BRS in my RA next time with prop pledge.

the rest all samma take out.

2.5% to 4% ish a complete waste of good $.

Where you gonna move to?

 

[lifeafter41]

Btw, if got $500k in OA, need. $500000/$2000=250 months to finish drawing out Sia if assume one month draw $2000…

Why don’t just draw 1k /month…………
Can neh finish.

 

[The_Davis]

Why don’t just draw 1k /month…………
Can neh finish.

500 months = 40 years .

haven’t include interest leh

 

[bigrooster]

Btw, if got $500k in OA, need. $500000/$2000=250 months to finish drawing out Sia if assume one month draw $2000…

$500,000 in OA, assuming 2.50% p.a. interest => $12,500 per year. Each month draw $1,040.

Self-sustained and 'principal' untouched. As aged further, can increase drawdown amount.

Having said that, I actually started my withdrawal from OA today, bit by bit.