Contribution to Parents CPF

[henrylbh]

5 years isn't the max normally, it's meant to last 20 years from retirement age. Just that your dad is 81 years old already.

Under MSS, payout period is about 20 years or to age 82/83 but if receiver passes this age, it's about 5 years payouts or min of 297 till fund exhausted.

If top-up is a big sum, the payout can be 'eternity' if the receiver like 81yo gets the default $297 pm without asking for enhanced payout.

His father is 81 yo and most probably for his cohort, the terminal payout would be around 80yo or lower.

 

[zuppeur]

My dad is 80 this year. He is under the old mss scheme. Current his ra left nit much

My cpf have reached frs.I am thinking shld I transfer my oa to his ra account. I could not find the full details at cpf website.

1.If now every month I transfer my 1.5k from my oa to my father ra account,can he withdrawl the 1.5k out of his ra every month?

2.his ra will earn 6% interest. If no withdrawal is made.if he pass on,i know the money transfer to his ra account will go back to my oa account. what about the interest earn,where does it go to?

 

[SBC]

Suggest to start small amount irregardless whether your FRS is reached. Reason: your last $ is earning 4% while first $ in MSS RA is earning 6%.

 

[henrylbh]

Suggest to start small amount irregardless whether your FRS is reached. Reason: your last $ is earning 4% while first $ in MSS RA is earning 6%.

He is asking about transfer from his OA to his father RA. What are you saying?

 

[henrylbh]

My dad is 80 this year. He is under the old mss scheme. Current his ra left nit much

My cpf have reached frs.I am thinking shld I transfer my oa to his ra account. I could not find the full details at cpf website.

1.If now every month I transfer my 1.5k from my oa to my father ra account,can he withdrawl the 1.5k out of his ra every month?

2.his ra will earn 6% interest. If no withdrawal is made.if he pass on,i know the money transfer to his ra account will go back to my oa account. what about the interest earn,where does it go to?

Answers can be found here.

https://www.cpf.gov.sg/Members/FAQ/schemes/retirement/retirement-sum-scheme

 

[donald83]

For Special Account, is there a cap on the 4% interest earned? So if i place $1m in SA and i get 4% on $1m?

 

[henrylbh]

For Special Account, is there a cap on the 4% interest earned? So if i place $1m in SA and i get 4% on $1m?

Yes 4% on whatever in your SA until the rate is revised.

 

[donald83]

Yes 4% on whatever in your SA until the rate is revised.

I was reading Sunday Times and they said the cap in SA is actually the prevailing FRS. U cannot do further top ups.

So why did you say that there is no cap?

 

[henrylbh]

For Special Account, is there a cap on the 4% interest earned? So if i place $1m in SA and i get 4% on $1m?

Yes 4% on whatever in your SA until the rate is revised.

I was reading Sunday Times and they said the cap in SA is actually the prevailing FRS. U cannot do further top ups.

So why did you say that there is no cap?

You asked whether got cap on 4% interest earned and not cap on SA.

Anyway there is no cap on SA from mandatory contributions. SA cap only applies to top-ups.

 

[donald83]

You asked whether got cap on 4% interest earned and not cap on SA.

Anyway there is no cap on SA from mandatory contributions. SA cap only applies to top-ups.

I see. So if i already have 100k in SA, I can top up to prevailing rate at 161k. 4% will be earned and i can still contribute to SA from my employment?

 

[homer123]

Need guidance.. My mom 70 has 300K FD maturing.. I am thinking of putting all the 300K into her CPF account which has only $3000 MA. Can anyone advise which CPF account she can put her 300K so that she can get some kind of monthly payout for her retirement? I am overseas so I can't manage her finance.. Will the interest payoff she get from CPF get into her bank account? What is the pitfall in putting a lumpsum of 300K in her CPF account?

Thanks for any answer.

 

[OngHuatHuat]

Your mother's age is a very important factor

 

[homer123]

Your mother's age is a very important factor

So what do u recommend? I was reading the CPF site but could not figure how much money she should put in?? Should I put in the RA to earn the 4-5% interest or CPF life which has more payoff.. but not sure what happen to the money if put in CPF life if she pass away

https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/retirement-sum-scheme#Item1599

 

[oceanicmanta]

So what do u recommend? I was reading the CPF site but could not figure how much money she should put in?? Should I put in the RA to earn the 4-5% interest or CPF life which has more payoff.. but not sure what happen to the money if put in CPF life if she pass away

https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/retirement-sum-scheme#Item1599

Your mum shld be on Minimum Sum Scheme, which I feel is better option than CPF Life.

Similarly, the amounts topped up in her RA, she can apply to CPF to draw down montly & paid to her bank account.

perhaps dont put 300k in one pop ...

You can email CPF Board for details.

Or let others more knowledgeable advise u or correct me.

 

[koja6049]

CPF life is a generally bad idea, it is designed to pool the funds from both rich and poor so that they can equalise payout. But if you support the idea of a "ad-hoc welfare system" then by all means go ahead

 

[koja6049]

https://www.ifa.sg/cpf-life-standard-is-the-worst/

I speculate that the ‘poor’ returns of CPF Life Standard is due to the fact that all of the CPF RA is being invested into the common insurance pool while only a small amount of CPF RA under CPF Life Basic goes to the insurance common pool. The seemingly poor return is probably due to the ‘penalty’ of early exit from the pool in order to help subsidise the remaining in the pool who live too long. This is how insurance works through risk pooling. Unfortunately, we do not know whether this risk pooling is efficient as there is no further benefit illustration available.

 

[elnewbie]

That's right.

I see. So if i already have 100k in SA, I can top up to prevailing rate at 161k. 4% will be earned and i can still contribute to SA from my employment?

 

[djchris]

I do top up my mum's cpf. She's still in the old scheme so every top up helps extend the payout period.

 

[henrylbh]

Need guidance.. My mom 70 has 300K FD maturing.. I am thinking of putting all the 300K into her CPF account which has only $3000 MA. Can anyone advise which CPF account she can put her 300K so that she can get some kind of monthly payout for her retirement? I am overseas so I can't manage her finance.. Will the interest payoff she get from CPF get into her bank account? What is the pitfall in putting a lumpsum of 300K in her CPF account?

Thanks for any answer.

For her age, she can have OA, SA, MA and RA.

No way can she put 300k into any of the accounts. There is an annual limit for voluntary contributions (37k plus) to OA, SA and MA as well a current cap on topping up ($240k plus) to RA.

 

[henrylbh]

With recent top up to my father's RA, his monthly payout increased from 1,068 to 1,611

I may top up some more just to earn the min interest of 4% next year and request for even high payout.