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CPF Special Account after 55 years old

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Old 14-02-2018, 10:42 AM   #46
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'money is getting lonely without you?' More like his uncle getting lonely without money. Grab first and recycle. He prefers a combo I wish I also can have.
u can when u reach 65 but u have already been doing for so many years using your father's account!

Last edited by maple96; 14-02-2018 at 10:46 AM..
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Old 14-02-2018, 10:46 AM   #47
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u can when u reach 65
I believe can, but the price too high compared to his uncle's generation.
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Old 14-02-2018, 10:51 AM   #48
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I believe can, but the price too high compared to his uncle's generation.
what price? no diff
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Old 14-02-2018, 11:12 AM   #49
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u can when u reach 65 but u have already been doing for so many years using your father's account!
with my topping up in Jan, he is now getting 2,204 monthly from Feb.
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Old 14-02-2018, 11:15 AM   #50
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what price? no diff
The annuity premium. Besides, his uncle's commitment just nice or just below 60k for max returns.
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Old 14-02-2018, 11:18 AM   #51
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lolllllllll
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Old 14-02-2018, 11:30 AM   #52
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I'm really confused why:

(a) Start CPF LIFE payouts at age 65, then take the monthly payouts to top up the Retirement Account;

would be financially better than

(b) Defer CPF LIFE payouts until age 70, then (if desired) take those deferred/higher monthly payouts and plow them into the Retirement Account.

What's the point of (a) if you don't need the money? (Not JL's father, who evidently does need the money sooner rather than later.) I don't understand why anyone (who doesn't need the money) would ever rationally do (a) over (b).
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Old 14-02-2018, 11:39 AM   #53
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I'm really confused why:

(a) Start CPF LIFE payouts at age 65, then take the monthly payouts to top up the Retirement Account;

would be financially better than

(b) Defer CPF LIFE payouts until age 70, then (if desired) take those deferred/higher monthly payouts and plow them into the Retirement Account.

What's the point of (a) if you don't need the money? (Not JL's father, who evidently does need the money sooner rather than later.) I don't understand why anyone (who doesn't need the money) would ever rationally do (a) over (b).
JL only giving one reason why one would want to start earlier payout. But that may not be the actual reason why he thinks his uncle should start earliest possible.
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Old 14-02-2018, 07:52 PM   #54
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I'm really confused why:

(a) Start CPF LIFE payouts at age 65, then take the monthly payouts to top up the Retirement Account;

would be financially better than

(b) Defer CPF LIFE payouts until age 70, then (if desired) take those deferred/higher monthly payouts and plow them into the Retirement Account.

What's the point of (a) if you don't need the money? (Not JL's father, who evidently does need the money sooner rather than later.) I don't understand why anyone (who doesn't need the money) would ever rationally do (a) over (b).
dont need money at 65 does not mean dont need money at 69. at 65, can you predict that you are not going to need money at 69. if suddenly you need this money, you will realize that all you money is stuck inside cpf life.

but if you have started your payout at 65 and plow them back into cpf, you would realize that you would have a tens of thousand in your liquid cpf account. you can activate this amount at 69 if you need it.
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Old 14-02-2018, 08:39 PM   #55
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but if you have started your payout at 65 and plow them back into cpf, you would realize that you would have a tens of thousand in your liquid cpf account. you can activate this amount at 69 if you need it.
No, this isn't actually an option. It'd be lovely, but no. RA top-ups can only come out two ways (at least for CPF LIFE participants): as CPF LIFE payouts, or together with your pine box (i.e. a bequest at death, if there's a residual).

I've provided the link where CPF explains all this, quite clearly. If somebody finds something else, OK, post the link!

It is possible to do an "all three" top up, but a portion of those funds goes into MA, which is quite restricted.

"Need the money" includes needing an emergency reserve fund (or a bigger one). But if you don't need the money...why? It's a true mystery.
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Old 14-02-2018, 10:08 PM   #56
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No, this isn't actually an option. It'd be lovely, but no. RA top-ups can only come out two ways (at least for CPF LIFE participants): as CPF LIFE payouts, or together with your pine box (i.e. a bequest at death, if there's a residual).

I've provided the link where CPF explains all this, quite clearly. If somebody finds something else, OK, post the link!

It is possible to do an "all three" top up, but a portion of those funds goes into MA, which is quite restricted.

"Need the money" includes needing an emergency reserve fund (or a bigger one). But if you don't need the money...why? It's a true mystery.
Based on your repeated points, could I say that if there's an option to defer CPF pay-out to 85 years old (and with 7% increase per year), then your personal opinion is that this is always the best choice to do so?

Assuming the person already has emergency funds of 24 months.
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Old 14-02-2018, 10:58 PM   #57
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Based on your repeated points, could I say that if there's an option to defer CPF pay-out to 85 years old (and with 7% increase per year), then your personal opinion is that this is always the best choice to do so?
Sure, why not? If you don't need/want that money, you don't need/want that money. The funds are growing nicely, the payor is Singapore's most reliable (and one of the world's most reliable), and the funds are incredibly well protected (from creditors and court judgments, too). "Let them ride."

That's exactly what some well-to-do CPF members used to do, but fairly recently the government limited that bit of generosity and now requires payouts to commence no later than age 70. Some clever nominated heirs also used to let their bequests stay parked at CPF, continuing to earn excellent well above market interest. But that bit of generosity has also been limited recently. Such financial behaviors are perfectly rational and sensible, and those were great "hacks" while they lasted.

The basic concept here is "satiation." Is this an unknown concept around these parts? I don't think so.
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Old 15-02-2018, 02:24 AM   #58
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That's exactly what some well-to-do CPF members used to do, but fairly recently the government limited that bit of generosity and now requires payouts to commence no later than age 70. Some clever nominated heirs also used to let their bequests stay parked at CPF, continuing to earn excellent well above market interest. But that bit of generosity has also been limited recently. Such financial behaviors are perfectly rational and sensible, and those were great "hacks" while they lasted.
'some well-to-do CPF members used to do' or intend to do? The first batch (born in 1958) under mandatory CPF Life has not even reached PEA in 2023.

And there is nothing clever about enhanced nomination scheme, though it may serve the purpose of 'some' members, and they do so not for the sake of higher interest rates.
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Old 15-02-2018, 06:07 AM   #59
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Sure, why not? If you don't need/want that money, you don't need/want that money. The funds are growing nicely, the payor is Singapore's most reliable (and one of the world's most reliable), and the funds are incredibly well protected (from creditors and court judgments, too). "Let them ride."

That's exactly what some well-to-do CPF members used to do, but fairly recently the government limited that bit of generosity and now requires payouts to commence no later than age 70. Some clever nominated heirs also used to let their bequests stay parked at CPF, continuing to earn excellent well above market interest. But that bit of generosity has also been limited recently. Such financial behaviors are perfectly rational and sensible, and those were great "hacks" while they lasted.

The basic concept here is "satiation." Is this an unknown concept around these parts? I don't think so.
If one has a few billion, I guess the CPF monies is insignificant.
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Old 15-02-2018, 08:24 AM   #60
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If one has a few billion, I guess the CPF monies is insignificant.
No need to exaggerate.

Some Princeton researchers estimated the “happiness threshold” in the United States not too long ago, and according to their findings it was about US$75,000/year of income in that country. That is, once you get to that level of income an additional dollar of income didn’t make you any happier, on average. Sure, you could buy more things, but as far as happiness, that’s as far as it goes. If you’re going to be any happier, you have to find that greater happiness in other ways than more money.

Some people have figured this out. It’s a concept of “satiation.” I believe I’ve reached that point, and I’m quite fortunate that way. But there are many such people. (“Cowboy millionaires” have, by and large.)

So, what are you going to do with this CPF money if you don’t need it and if it doesn’t bring you any more happiness? If it’s safe and protected, growing very nicely, and could benefit an heir or charitable cause you care about, “let it ride.” Why not? It’s simple, and no, it doesn’t require billions. Not necessarily even one million.

But it’s a moot point anyway, because the government doesn’t allow you to postpone payouts past age 70. Other countries are often the same. [The U.S. has a maximum age of 70 for U.S. Social Security retirement benefit startup and age 70 1/2 for its Traditional 401(k)s and Traditional IRAs, to pick another example. Governments don’t like to keep great deals going “too long.”]
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