[henrylbh]

zuppeur wrote:

My parents is above 55.
I intend to top up their cpf to enjoy the 6% interest for the first 30k.

Would i be able to top up to their SA?
What are the difference topping up their SA vs RA?

First 30k in RA earns 6%, next 30k 5% and excess earns 4%.

You can't top up SA as they are above 55, only RA.

[zhenyuan_2000]

Hi all

I have been reading this thread. Thanks for the info. Not sure if i missed out regarding this question of mine. (Pardon)

My mum is 63 and she is still working with regular income.

Am I able to top up her SA? Or RA? Will she or I be able to enjoy any tax relief if I top up in either of these2?

Thanks

[henrylbh]

zhenyuan_2000 wrote:

Hi all

I have been reading this thread. Thanks for the info. Not sure if i missed out regarding this question of mine. (Pardon)

My mum is 63 and she is still working with regular income.

Am I able to top up her SA? Or RA? Will she or I be able to enjoy any tax relief if I top up in either of these2?

Thanks

Can only top up her RA as she is passed 55. Can claim tax relief of 7k, if RA less than FRS.

If she had no met FRS of her co-hort, all her working contributions (including voluntary contributions, if any) will go into RA if she tries withdraw her OA and SA less 5k if she had not withdrawn before. As such, if she is certain that she will never use her OA, better transfer them to RA asap.

[maple96]

zhenyuan_2000 wrote:

Hi all

I have been reading this thread. Thanks for the info. Not sure if i missed out regarding this question of mine. (Pardon)

My mum is 63 and she is still working with regular income.

Am I able to top up her SA? Or RA? Will she or I be able to enjoy any tax relief if I top up in either of these2?

Thanks

She is 63, 2 years later will start payout at 65. Before u do anything, check which CPF Life Plan she signed up at 55. Login to CPF to check, u should be able to see balance in RA and balance in CPF Life.

[BBCWatcher]

maple96 wrote:

She is 63, 2 years later will start payout at 65.

That’s upon request. Payouts can start as late as age 70 if desired.

It’s possible she is still under the old Retirement Sum Scheme, but she can join CPF LIFE if she wishes — and generally I’d recommend that.

[zhenyuan_2000]

Thanks for all the advice. 😄

[LiteHouse]

EagleToThesSky wrote:

"

Since we are on this topic, what do you think about the return of a BTO flat in a mature estate, such as Clementi or Queenstown for example? Apparently, the government does not want the market to be too hot, which means housing price appreciation might be less attractive.

Fact 1: SG land is limited.
Fact 2: Population must increase for economy sake.
Fact 3: Clementi, Bouna Vista, Queenstown, Bishan, TPY, Etc are running out of land for BTOs. If you want these areas u have to buy resale or condo.

[BBCWatcher]

LiteHouse wrote:

Fact 1: SG land is limited.

No, it’s being reclaimed. Singapore’s land area increased 23% within the past half century. And potential floor space is even more abundant.

Quote:

Fact 2: Population must increase for economy sake.

There seems to be a broad consensus in Singapore — and public pressure on elected officials — to keep tight control over immigration. I don’t expect any sudden change in those political views, but if you want to forecast a return to 3% annual population growth due to much higher net migration rates, you’re welcome to your forecast. I’m not forecasting that.

[henrylbh]

maple96 wrote:

She is 63, 2 years later will start payout at 65. Before u do anything, check which CPF Life Plan she signed up at 55. Login to CPF to check, u should be able to see balance in RA and balance in CPF Life.

She is before 1958 and has option of joining CFF Life. If she has not, better she remains under the old scheme unless she thinks she can easily lives passed 95.

[BBCWatcher]

henrylbh wrote:

If she has not, better she remains under the old scheme unless she thinks she can easily lives passed 95.

That’s utter nonsense! The Retirement Sum Scheme pays for 20 years. If payouts are started at age 65, then payouts permanently and irrevocably end just before one’s 85th birthday. Start at age 70 (the maximum) and they end just before age 90.

More than half of Singaporean women age 65 today live past age 87!

CPF LIFE assures monthly income for life, however long one lives. It’s the pinnacle of Singapore dollar denominated retirement income security.

[henrylbh]

That would be utter stupidity without giving thoughts to the numbers and cost of the scheme. If it's that good, a huge number under RSS is stupid not to join when they have a choice.

[JuniorLion]

Not sure how I am waddling into this, but hey:

BBCWatcher wrote:

No, it’s being reclaimed. Singapore’s land area increased 23% within the past half century. And potential floor space is even more abundant.

We're limited up north, south, east, and west. So there's a limit.

[BBCWatcher]

henrylbh wrote:

If it's that good, a huge number under RSS is stupid not to join when they have a choice.

No, that’s not a given, for several reasons:

1. Pure inertia and lack of information. There are plenty of smart things people could be doing that they don’t do simply because they’ve never considered it and never event spent time considering it. For example, plenty of people could be earning far more interest, and with better liquidity, in Singapore Savings Bonds than in fixed deposits. Yet fixed deposits are still remarkably popular.

2. Many people (including in this forum!) are terrible estimating life expectancies. You just made that basic mistake, as it happens.

3. Some percentage of CPF members are in poor health or even have terminal illness diagnoses.

4. Some percentage are waiting to decide. A CPF LIFE participation decision can be deferred, at least to some extent.

5. Some percentage have private and/or public lifetime pensions and would often otherwise qualify for CPF LIFE participation waivers, if they wished them.

6. Some percentage have younger spouses that will be CPF LIFE participants, and thus household income is rather well protected for life. These are household decisions, or at least they should be.

[henrylbh]

As a woman her payout for life is substantially lower than under RSS for 20 years from age 65. The difference recycled into RA can easily last 100 years. Anytime she goes, her bequest will be more under RA (assuming she recycle the difference) unlike zero bequest at 92 under CPFL. If she starts payout at 70,I won't need to know how long her RA will last.

[BBCWatcher]

JuniorLion wrote:

We're limited up north, south, east, and west. So there's a limit.

There is a limit absent a treaty renegotiation, and here it is (see the map). Singapore is in absolutely no danger of approaching its land reclamation limit within the lifetimes of anybody living in 2018.

There’s another long-term limit that will apply much sooner: rising sea levels due to global climate change. “Best guess” is that Singapore will turn into the Asian Holland and build lots of sea walls to protect the country against rising sea levels. That huge future investment will probably hold the seas at bay for several decades.