About CPF life premium

[evildoer]

After ur retirement account created at age 55, . Do you guy still interested to top up ? i think government dollar to dollar top up campaign for senior.. $2000.00 a year..

 

[reddevil0728]

After ur retirement account created at age 55, . Do you guy still interested to top up ? i think government dollar to dollar top up campaign for senior.. $2000.00 a year..

You got see the eligibility requirement?

 

[BBCWatcher]

After ur retirement account created at age 55, . Do you guy still interested to top up ? i think government dollar to dollar top up campaign for senior.. $2000.00 a year..

Sure, why not? Voluntary Contributions to MediSave are eligible for tax relief no matter what age you are as long as you have taxable income (and tax to relieve). Lots of people have taxable income at age 55+.

The Matched Retirement Savings Scheme (MRSS) is not available to those members who've reached the current Basic Retirement Sum (BRS), excluding interest. But the BRS is not the CPF Retirement Account top-up limit. The current Enhanced Retirement Sum (ERS) is. Every time the ERS is raised (usually on January 1) there's room for another top up even if you've previously met the ERS.

CPF MediSave and Retirement Accounts currently earn 4.0% interest (an attractive interest rate). Moreover, these forms of saving are well protected against creditors and court judgments.

 

[evildoer]

To ask:
If 55 yo, oa: 40000, sa:410000. Both will combine into ra:450000.
Assuming Frs is 300000, the balance 150000 can take out at 55yo?
Or jus 40000 from oa. Sa money is stuck forever.

i think when ur retirement account open at 55.. Your special account will be closed. it will first take the Special account to fill up ur retirement account to FRS (depend on FRS at that time). the rest will return to your ordinary account. u can choose to transfer the sum from the OA to RA to reach ERS. or withdraw..

but i think for top up and the interest earned from it cannot be withdraw.. and if you reached FRS in special account before the age 55.. i think u cannot do cash top up into the special account anymore.. it can only be contributed through employment. like the interest earned on the Special account , will be credit into your ordinary account instead..

 

[fire]

i think when ur retirement account open at 55.. Your special account will be closed. it will first take the Special account to fill up ur retirement account to FRS (depend on FRS at that time). the rest will return to your ordinary account. u can choose to transfer the sum from the OA to RA to reach ERS. or withdraw..

but i think for top up and the interest earned from it cannot be withdraw.. and if you reached FRS in special account before the age 55.. i think u cannot do cash top up into the special account anymore.. it can only be contributed through employment. like the interest earned on the Special account , will be credit into your ordinary account instead..

Yeah, reach FRS in SA before 55 cannot do more topup by cash or transfer anymore. Tried it and was denied

Other than topup by employment, I believe interest earned in SA will still be added, someone can correct me if wrong. Not sure if Medisave max, will it still flow to SA or go into OA instead.

 

[evildoer]

Yeah, reach FRS in sa before 55 cannot do more topup by cash or transfer anymore. Tried it and was denied

Other than topup by employment, I believe interest earned in SA will still be added, someone can correct me if wrong.

yeah i am also not so sure about the interest earned... i have not reach FRS ..

 

[alanchia67]

Your SA continue to earn interests. That's why some people can achieve close to ERS amount in their SA before 55.

 

[BBCWatcher]

like the interest earned on the Special account , will be credit into your ordinary account instead.

Special Account interest stays in your Special Account. Then your whole Special Account is closed when you celebrate your 55th birthday.

 

[fire]

Special Account interest stays in your Special Account. Then your whole Special Account is closed when you celebrate your 55th birthday.

If FRS and Medisave are max out, will excess from medisave still flow into SA or OA?

 

[alanchia67]

If FRS and Medisave are max out, will excess from medisave still flow into SA or OA?

It should flow to OA. You cant top-up anything if SA already hit FRS. The SA continues to earn interests.

 

[BBCWatcher]

u can choose to transfer the sum from the OA to RA to reach ERS. or withdraw..

That’s an option, but it’s often not the best option. Cash and/or OA transfers from family members can often work better.

Once you’ve met the Full Retirement Sum (or Basic Retirement Sum with property pledge/charge) in your Retirement Account your OA becomes a fully liquid 2.5% interest earning account. If for example you have cash sitting around earning 1.5% interest, it would be better to use that cash instead of OA to make RA top ups. As another example, if you’re 55 but your spouse is 52, it would be better if your spouse transfers OA dollars into your RA. Your OA is liquid, but your age 52 spouse’s OA is not.

 

[fire]

It should flow to OA. You cant top-up anything if SA already hit FRS.

I meant cpf funds from employment.

 

[alanchia67]

I meant cpf funds from employment.

Once SA is at FRS, all contributions will flow into OA (if Medisave is at BHS).

 

[BBCWatcher]

If FRS and Medisave are max out, will excess from medisave still flow into SA or OA?

Once your Special Account (including interest and CPF Investment Scheme deductions) reaches the Full Retirement Sum it will not receive any “spillover” dollars from MediSave. Your OA will.

It’s much the same from age 55+, although then it depends on whether your Retirement Account has reached the Full Retirement Sum (or Basic Retirement Sum with property pledge/charge).

 

[fire]

Once SA is at FRS, all contributions will flow into OA (if Medisave is at BHS).

But I read the below:
"When we hit our FRS in our SA, our mandatory contributions continue to flow in our SA. This means even when we hit the FRS in our SA, any further CPF mandatory contribution that is supposed to be allocated to SA would continue to flow into our SA"

 

[alanchia67]

But I read the below:
"When we hit our FRS in our SA, our mandatory contributions continue to flow in our SA. This means even when we hit the FRS in our SA, any further CPF mandatory contribution that is supposed to be allocated to SA would continue to flow into our SA"

You are right. Your monthly contributions continue to flow into SA.

 

[evildoer]

Just curious, after 55.. retirement account FRS . Can you like treat it like a bank withdrawal account for the fund in your OA.. like today draw 100 , 3 days later.. draw another 100.. i meant what's the withdrawal process.. can do it online ? and does it approve instantly ?

 

[fire]

Once your Special Account (including interest and CPF Investment Scheme deductions) reaches the Full Retirement Sum it will not receive any “spillover” dollars from MediSave. Your OA will.

It’s much the same from age 55+, although then it depends on whether your Retirement Account has reached the Full Retirement Sum (or Basic Retirement Sum with property pledge/charge).

Thanks. That means once SA reach FRS before 55, topup will only be from the mandatory contribution specifically to SA and SA annual bonus.

 

[alanchia67]

Just curious, after 55.. retirement account FRS . Can you like treat it like a bank withdrawal account for the fund in your OA.. like today draw 100 , 3 days later.. draw another 100.. i meant what's the withdrawal process.. can do it online ? and does it approve instantly ?

Usually we allocate our resources into buckets. Use up the bucket with lowest interests first before touching the next bucket with higher interests/returns.

Is your CPF OA earning the lowest interest compared to your other account/investments returns?

 

[royalmix]

Just curious, after 55.. retirement account FRS . Can you like treat it like a bank withdrawal account for the fund in your OA.. like today draw 100 , 3 days later.. draw another 100.. i meant what's the withdrawal process.. can do it online ? and does it approve instantly ?

Yes, your OA is your "on demand bank account", like your on demand ATM, withdrawal anytime any amount, online and instant via Paynow, if you setup correctly!

Usually we allocate our resources into buckets. Use up the bucket with lowest interests first before touching the next bucket with higher interests/returns.

Is your CPF OA earning the lowest interest compared to your other account/investments returns?

Based on his question of small amts, your assumption of usage and method might be right.

But if one can earn much more interest in Bank accounts, it makes sense to withdraw. Then he must have a means flow it back when markets change if he wants to play this game!