Discussn CPF : Anyone alredy reached ERS ($450k) or topping up FRS to ERS ?

[ahboy82]

U guys r sibei elite. Took moi so long to hit frs, cannot think Abt ers bah. Too much for moi

 

[mcylo]

Wow congrats !

aiyah....just some numbers only

 

[rizhal]

Can some one check my understanding i.e.

Lets say you stay in old HDB (fully paid) and no longer going to move out - stay until mati. If you choose BRS you will need to pledge your property. Since you not going to sell the property, if you pledge it you can withdraw more $ from CPF... Is that a smart way to encash your property?

Depend on your situation.

If you pledge flat, then your CPF life monthly amount is computed from your BRS.

If you say more CPF, do you mean you have more OA to draw down from ? I don’t know your case.

 

[grevq80o]

Depend on your situation.

If you pledge flat, then your CPF life monthly amount is computed from your BRS.

If you say more CPF, do you mean you have more OA to draw down from ? I don’t know your case.

Yar i mean I have more than FRS liao... Just thought whether by choosing BRS I can encash more out of CPF. Since my property fully paid and i will be staying there forever, I thought might as well use the equity to help take more $ out of CPF. U think ish a good or bad idea? Not so focused on the CPFLife payout

 

[8zaoyu]

With scams why not put in FD still can draw out unlike CPF life, die leow balance go common pool and descendants can't get any of the balance in the ERS.

If you die the first month after your draw- down payouts, you ERS that is un-used will be for your descendants MINUS what you have drawn down as pay-outs, no?
If you are a struggler to form FRS, what you have in CPF is what you will draw from 65 or 70, TILL your CPF dry, maybe CPFB keep the interests of CPF Life pool to distribute to long life folks living past 90 ?

 

[fandango]

OA MS and SA together



Read HWZ Forum Rules!

Wah! $700k is excellent! Can screenshot your cpf monies and post here?

 

[Zze121]

if i have 1m spare cash, may consider to top-up to ers

 

[fandango]

Yar i mean I have more than FRS liao... Just thought whether by choosing BRS I can encash more out of CPF. Since my property fully paid and i will be staying there forever, I thought might as well use the equity to help take more $ out of CPF. U think ish a good or bad idea? Not so focused on the CPFLife payout

Pledging HDB flat doesn't sound like a good idea. Many questions I ask last time is unanswered.

For example, if I pledge my flat, what happens when I sell my flat.
What happens if I divorce.
What happens if my spouse die.
Can my chewren inherit this pledged flat? How?

 

[mcylo]

U guys r sibei elite. Took moi so long to hit frs, cannot think Abt ers bah. Too much for moi

not elite lah. we just coolie

 

[rizhal]

Yar i mean I have more than FRS liao... Just thought whether by choosing BRS I can encash more out of CPF. Since my property fully paid and i will be staying there forever, I thought might as well use the equity to help take more $ out of CPF. U think ish a good or bad idea? Not so focused on the CPFLife payout

ok, you have enough money (to hit FRS) but you choose to pledge and BRS.

Then I cannot see how you could take more money from CPF : your FRS amount into 2 x BRS as follows:

SA -> BRS amount (4% grow until 65yo, then CPF life take over)

OA -> BRS amount (2.5% grow)

Best is to grow all your FRS amount at 4% rate to maximize it.

 

[8zaoyu]

Yar i mean I have more than FRS liao... Just thought whether by choosing BRS I can encash more out of CPF. Since my property fully paid and i will be staying there forever, I thought might as well use the equity to help take more $ out of CPF. U think ish a good or bad idea? Not so focused on the CPFLife payout

It is a good to get the dollars, but before sale upon your death, your loved ones / charities will have to wait for sale price AFTER recovery of dollars with accrued interests that you have "pledged", no?

 

[hachi]

After FRS cannot top up until 55 then can top up RA to ERS?

Then don't bother... Just leave it inside OA if got opportunity just whack another property.

 

[grevq80o]

Pledging HDB flat doesn't sound like a good idea. Many questions I ask last time is unanswered.

For example, if I pledge my flat, what happens when I sell my flat.
What happens if I divorce.
What happens if my spouse die.
Can my chewren inherit this pledged flat? How?

I can answer a few of the above:
, if I pledge my flat, what happens when I sell my flat - CPF WILL USE YOUR SALE PROCEED TO TOP UP YOURRA TO FRS BEFORE RELEASING THE REST OF $ TO YOU ... SAME AS THE ACCRUED INTEREST.
What happens if I divorce - NOT SURE. CUZ MOI ISH SINGLE. NOT THINK ABOUT IT.
What happens if my spouse die - IF YOUR FLAT IS HELD AS JOINT TENANCY, WHEN ONE SPOUSE DIE, THE SURVIVING SPOUSE AUTOMATICALLY TAKE OVER THE OWNERSHIP OF THE PROPERTY. NO MORE CPF TO WORRY ABOUT, THE SPOUSE'S CPF GO TO THE NOMINATED BENEFICIARY.
Can my chewren inherit this pledged flat? How? - MOI HAS NOT CHEWREN. SO NOT THINK ABT IT.

 

[inmyopinion]

i will stop at FRS and put excess money in better use. recently CNA announced CPF interest will stay at 4% for next one year. sounds like anytime the government can reduce interest they want. they made it like for donkeys years never reduce interest in our favor. one day they will just say bo bian have to reduce, giving excuses like US fred interest also reduce, need to follow bank rates etc.

CPF Interest rates history

https://www.cpf.gov.sg/content/dam/web/member/faq/documents/InterestRate.pdf

 

[pclow59]

the key question is how many years do i have after 65.

https://www.straitstimes.com/singap...-2024-marking-improvement-over-covid-19-years

 

[KnyghtRyder]

It is impossible to top up to ERS before 55 yo.

No one said top up. Can be from interest accumulation and salary contribution

 

[inmyopinion]

Just crossed 40 milestone.

Though I have reached CPF FRS and a biz owner, I am wondering if I shd continue to contribute or top up my FRS to ERS of $450K. The interest for ERS is not bad, I think annual 4% rite ? Also completely risk free. So after 65yo, it will becum CPF Life and I can get min $3K/mth payout for life.

Anyone alredy reached ERS ?

 

[KnyghtRyder]

but OA only gives 2.5% interest. If you take out and invest in US equities can huat until cannot recognize home

Seems risky leh

 

[KnyghtRyder]

i will stop at FRS and put excess money in better use. recently CNA announced CPF interest will stay at 4% for next one year. sounds like anytime the government can reduce interest they want. they made it like for donkeys years never reduce interest in our favor. one day they will just say bo bian have to reduce, giving excuses like US fred interest also reduce, need to follow bank rates etc.

4% is the floor rate. They can't go lower without getting permission from Parliament

 

[KnyghtRyder]

late 40, still struggle to reach BRS

Means you have millions in FD