2nd Sweep @ 65 by CPF

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balagan

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#7 Transfer Of Ordinary And Special Accounts Savings To Retirement Account At Payout Start Age [From 2023]​


This was announced as part of the 7 changes to CPF policies back in January 2022.

"At age 55, our Retirement Account (RA) is created and savings from our SA and OA, up to the Full Retirement Sum, will be transferred to our RA. If by the time we turn 65 and are eligible for payouts, our RA savings is less than our FRS, there would be another transfer from our SA and OA to our RA."

How will the following going to be impacted if one fulfills his cohort's FRS at age 55:
1. Property Pledge (before age 65)
2. Withdraw 20% PEA (at age 65).

Can anyone share any insights?

This 2nd sweep really seems adamant to "control" our CPF savings though there are views this allows members a higher monthly payout.
 
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sohguanh

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item2sell said:
I think this applies to those who didn’t meet FRS at 55.

But then again. CPF change every minute. Treat it as bonus if you lucky to get it back.
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The CPF scheme to get back all your monies is you die or you migrate. Very simple logic. If never fulfill above two they play game lor
 
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zoneguard

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balagan said:
Can anyone share any insights?
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https://www.cpf.gov.sg/member/faq/r...p-up-my-retirement-account-and-will-i-receive
However, if you receive any new contributions, government grants or other refunds in your CPF accounts after 55, part or all of these amounts will be transferred to your RA up to your FRS (or Basic Retirement Sum if you own a property) on your next withdrawal.
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https://www.cpf.gov.sg/content/dam/web/member/retirement/documents/Withdrawalrulestable.pdf
1Amount is withdrawable from your Special and Ordinary Account. If you have not yet met your Full Retirement Sum (with CPF savings or with a property), when you make
the withdrawal, some of your Special and Ordinary Account savings may be transferred to your Retirement Account to meet your Full Retirement Sum. Once you have met
your Full Retirement Sum, you can withdraw all your Special and Ordinary Account savings.
2 Amount withdrawable is computed based on your Retirement Account balance at age 65.

I can't find a specific FAQ on the sweep to RA at payout start age. Given this starts in 2023, maybe they haven't updated the FAQ.
 
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fr33d0m

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Without fulfilling FRS or BRS with property pledge, there is little to withdraw from CPF even with money in CPF OA/SA.

2nd sweep is to make the process simpler so that no money is stuck in CPF OA/SA.

I remember there were reports that people with BRS and property pledge kenna 2nd sweep, but I think these people can withdraw from CPF RA instead.
 
iMac

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balagan said:

#7 Transfer Of Ordinary And Special Accounts Savings To Retirement Account At Payout Start Age [From 2023]​


This was announced as part of the 7 changes to CPF policies back in January 2022.

"At age 55, our Retirement Account (RA) is created and savings from our SA and OA, up to the Full Retirement Sum, will be transferred to our RA. If by the time we turn 65 and are eligible for payouts, our RA savings is less than our FRS, there would be another transfer from our SA and OA to our RA."

How will the following going to be impacted if one fulfills his cohort's FRS at age 55:
1. Property Pledge (before age 65)
2. Withdraw 20% PEA (at age 65).

Can anyone share any insights?

This 2nd sweep really seems adamant to "control" our CPF savings though there are views this allows members a higher monthly payout.
Click to expand...
This 2nd sweep is really very confusing...no one seem to be completely clear of CPF's intent for this amendment.
 
BBCWatcher

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iMac said:
This 2nd sweep is really very confusing...no one seem to be completely clear of CPF's intent for this amendment.
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Currently if a second sweep is necessary it occurs on your 65th birthday. The only change is that the second sweep will instead occur just before starting CPF LIFE payouts — which can be as late as age 70 (the default). The explanation (as I understand it) is that many people in this situation continue working past their 65th birthdays and don't start CPF LIFE (or classic Retirement Sum Scheme) payouts at age 65. Hence the later sweep bolsters their Retirement Accounts when they are ready to start payouts.

These members can still transfer SA/OA dollars to RA manually, even every month (as compulsory contributions stream in) if they wish. That part doesn't change.
 
rrr2015

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balagan said:
How will the following going to be impacted if one fulfills his cohort's FRS at age 55:
1. Property Pledge (before age 65)
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to what i understand, if you already met FRS at 55 then there wont be 2nd sweep. property pledge is for you withdraw from RA anything above BRS
balagan said:
2. Withdraw 20% PEA (at age 65).
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don't see any impact on 20% RA withdrawal.
balagan said:
This 2nd sweep really seems adamant to "control" our CPF savings though there are views this allows members a higher monthly payout.
Click to expand...
2nd sweep applies only to those who didn't met FRS during 1st sweep at 55

best write to CPF clarify your doubts
 
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balagan

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fr33d0m said:
Without fulfilling FRS or BRS with property pledge, there is little to withdraw from CPF even with money in CPF OA/SA.

2nd sweep is to make the process simpler so that no money is stuck in CPF OA/SA.

I remember there were reports that people with BRS and property pledge kenna 2nd sweep, but I think these people can withdraw from CPF RA instead.
Click to expand...
Why is money stuck in CPF OA/SA? Isn't after 55, one can withdraw any amount from SA followed by OA.

Can share what other ways to withdraw from RA?
 
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fr33d0m

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balagan said:
Why is money stuck in CPF OA/SA? Isn't after 55, one can withdraw any amount from SA followed by OA.

Can share what other ways to withdraw from RA?
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Of course not. Only for those who has fulfilled FRS or BRS with property pledge then they have the freedom to withdraw any money left in SA&OA.
 
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sohguanh

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balagan said:
Why is money stuck in CPF OA/SA? Isn't after 55, one can withdraw any amount from SA followed by OA.

Can share what other ways to withdraw from RA?
Click to expand...
Above was true many years ago until earlier cohort spoil market go batam find women after take all out. Within a year give and take spend finish come back Spore ask govt feed. So govt angry come out new scheme policy to "solve" this issue.

Now want to withdraw all is you die or migrate.

I curse that cohort spoil market you do now behind cohorts suffer as a result of your actions. Women shiok meh? Curse of man even past dynasty emperor lost empire becuz of women. For more modern saga, past years MIW and oppo member women scandals
 
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item2sell

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sohguanh said:
Above was true many years ago until earlier cohort spoil market go batam find women after take all out. Within a year give and take spend finish come back Spore ask govt feed. So govt angry come out new scheme policy to "solve" this issue.

Now want to withdraw all is you die or migrate.

I curse that cohort spoil market you do now behind cohorts suffer as a result of your actions. Women shiok meh? Curse of man even past dynasty emperor lost empire becuz of women. For more modern saga, past years MIW and oppo member women scandals
Click to expand...

that is fake news.
If only the tikopek go Batam.
Why they punish All the lao grannies also
 
reddevil0728

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BBCWatcher

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balagan said:
https://www.cpf.gov.sg/member/faq/r...p-up-my-retirement-account-and-will-i-receiveLink provided by @zoneguard.
Here CPF says RA need not topup if one does not meet FRS in RA @ 55 and will receive retirement monthly payout amount depending on one's RA balance.
Does this not contradict the 2nd sweep at 65?
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No.

1. Starting in 2023 there's no sweep at age 65 specifically. The second sweep (if one is needed) is just before payout start. The default payout starting age is 70. The earliest payout starting age is 65.

2. Top ups aren't sweeps. They're two different things, hence they have different words attached.
 
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balagan

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The no top-up part mentioned "monthly payout amount depends on RA balance".

The 2nd sweep part "wants to help with higher monthly payout amount by transferring SA/OA to RA".

Does one not prefer to have savings remain in SA/OA and be able to withdraw any amount at any time?

Btw, top-ups after 55 is by choice with strings attached.
 
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