CPF contribution after Specical Account hits min sum

[cReDdY]

Definitely good to have $ in MA la. Have to pay for the premium for medishield life. How to afford when reach 50-60s and they - 1k per year from your account?

 

[antonpoh]

My relative got diabetes and can use MA to offset medications up to $400 per year. It is not a lot but good to have since MA is still yielding 4% in the background. ��

If you have 40k inside your MA, $400 per year can last 100yrs.

 

[henrylbh]

Can I clarify the underlined line above. You mean last time can withdraw cash from MA meh? I thought MA is for medical bills and medishield premiums only?

Only those 55 and above can withdraw cash from MA (in excess of MMS) if they met the min sums. MMC is 48,500 and MMS is 43,500 until end of this year.

From 1 Jan 2016, no more MMS (replaced by BHS) and hence no more issue about withdrawal. BHS will increase every year. Amount in excess of BHS flow into other accounts. When you reach 65, BHS is fixed. In other words, you need not contribute any more to MA.

 

[mcylo]

after reading thru all posting here, have decided and transferred all my OA to SA. HDB already fully paid. Hope I dont live to regret my decisions

 

[heymee]

after reading thru all posting here, have decided and transferred all my OA to SA. HDB already fully paid. Hope I dont live to regret my decisions

Will not regret -for sure!
In fact CPF Board controls how much to put in the SA Account...
As I have hit the minimum sum already....so tried to TOP UP under Voluntary Contribution...they said exceeded limit and have to refund me....very strict hor!

So actually CPF Board not desperate for people to put in $$$$ in the SA account.

So I am waiting for next year when the Enhanced CPF Life starts...
I will start again to transfer all my OA to SA if they allow...

 

[wts2013]

Will not regret -for sure!
In fact CPF Board controls how much to put in the SA Account...
As I have hit the minimum sum already....so tried to TOP UP under Voluntary Contribution...they said exceeded limit and have to refund me....very strict hor!

So actually CPF Board not desperate for people to put in $$$$ in the SA account.

So I am waiting for next year when the Enhanced CPF Life starts...
I will start again to transfer all my OA to SA if they allow...

hahaha, dun think u can do that, only can topup your RA, anyway u check lor, but SA cannot then RA make no difference to u right?

 

[heymee]

hahaha, dun think u can do that, only can topup your RA, anyway u check lor, but SA cannot then RA make no difference to u right?

I not so old get....still got a few more years to hit 55...

 

[teerance85]

after reading thru all posting here, have decided and transferred all my OA to SA. HDB already fully paid. Hope I dont live to regret my decisions

Once the HDB is fully paid, it's a wise choice to transfer the remaining OA monies to SA.

Why?

This would mean your min sum would be faster met, leaving whatever in the OA for withdrawal when you turn 55. Assuming you don't transfer and when you turn 55, monies from the OA will still flow in SA to meet the minimum sum. It's still back to Square one

 

[heymee]

Once the HDB is fully paid, it's a wise choice to transfer the remaining OA monies to SA.

Why?

This would mean your min sum would be faster met, leaving whatever in the OA for withdrawal when you turn 55. Assuming you don't transfer and when you turn 55, monies from the OA will still flow in SA to meet the minimum sum. It's still back to Square one

And if you have kids going U or in U...do not let them use your SA $$$ to pay the U fees... not because you are miser...

Because they must return with interest...into your CPF!

Go get study loan from the local bank...interest free when they are still a undergraduate...payback the bank loan when they work...
It is local students privilege ...must use it...

 

[highsulphur]

Once your SA hits min sum, you probably don't have to worry about min sum ever.

 

[wts2013]

I not so old get....still got a few more years to hit 55...

hahaha, then no need to dream/hope, u cannot transfer from OA to SA next year once u hit min, hahaha

 

[edwinttt1978]

after reading thru all posting here, have decided and transferred all my OA to SA. HDB already fully paid. Hope I dont live to regret my decisions

You shall not regret it.

The ones who regret are those who dilly dally now and then, only to realise it is too late for any effective transfers.

 

[dork32]

the only disadvantage is when you want to buy your second property or upgrade to a condo.

the extra few thousand in your oa may go a long way in helping you achieve your dream

however, if you are contented to stay in your hdb or you are so rich that the little bit of money that is transferred does not mean anything, it is a good idea to do the transfer

but do take note. aspirations do change in different stages of your life. when i was younger, i was very contented with my home. today i have bought my second property in sg. i am looking at buying another in maybe 5 years' time.

 

[edwinttt1978]

Once your SA hits min sum, you probably don't have to worry about min sum ever.

That's right. At 4%pa on $161,000 alone, even without future contributions, SA automatically grows $6-7k/year, enough to take care of any future increase in the Minimum Sum/Full Retirement Sum.

 

[rainbow123]

Like very difficult to hit MS

 

[highsulphur]

Like very difficult to hit MS

Easier if you plan early and don't over commit on using your cpf for housing payment

 

[satayxp]

after reading thru all posting here, have decided and transferred all my OA to SA. HDB already fully paid. Hope I dont live to regret my decisions

Depends a lot on ur current age n wat financial plans u have in the near future.. no right or wrong ~

 

[mcylo]

the only disadvantage is when you want to buy your second property or upgrade to a condo.

the extra few thousand in your oa may go a long way in helping you achieve your dream

however, if you are contented to stay in your hdb or you are so rich that the little bit of money that is transferred does not mean anything, it is a good idea to do the transfer

but do take note. aspirations do change in different stages of your life. when i was younger, i was very contented with my home. today i have bought my second property in sg. i am looking at buying another in maybe 5 years' time.

Would like to buy another property but dont think its possible. Just a salaried worker w 3 kids. Just an average Joe.

 

[henrylbh]

Will not regret -for sure!
In fact CPF Board controls how much to put in the SA Account...
As I have hit the minimum sum already....so tried to TOP UP under Voluntary Contribution...they said exceeded limit and have to refund me....very strict hor!

So actually CPF Board not desperate for people to put in $$$$ in the SA account.

So I am waiting for next year when the Enhanced CPF Life starts...
I will start again to transfer all my OA to SA if they allow...

SA has no limit unless you are transferring OA to SA. MA also has ceiling.

As long as you make voluntary contribution, subject to annual limit, the contribution will flow into OA, MA and SA.

You are right that CPF Board is not desperate for people's money. They are forcing me to withdraw more than 220k by early Nov, else no interest will be paid for fund not withdrawn.

 

[henrylbh]

I not so old get....still got a few more years to hit 55...

If you are few years to 55, it would be wise to transfer OA to SA to the ceiling. Else when you reached 55, they will auto do that for you. So better do it early to earn a higher interest rate of 4% in SA then leaving it in OA earning 2.5% since you are not thinking of a second property.

Anyway second property means paying additional buyer's stamp duty of 7% on top of the usual stamp duty. And if you need to get rid of it within 4 years, for whatever reason, you will also incur seller's stamp duty between 16% and 4%. Your second property will need to pay flat 10% property tax, regardless of whether you rent out your property.