Contribution to Parents CPF

[oceanicmanta]

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.

i presume your dad is on the old Min Sum Scheme, not CPF Life ?

with each top up, does your dad have to re-apply for the higher payout each month or is it auto computed ?

 

[henrylbh]

i presume your dad is on the old Min Sum Scheme, not CPF Life ?

with each top up, does your dad have to re-apply for the higher payout each month or is it auto computed ?

I must be dumb to top up if he is under CPF Life. Anyway he is not eligible to join CPF Life

For higher payout, if the top up is sufficient according to the recipient's age, you need to apply.

Haven't you read of a case where the person's RA will last till 130 yo simply because that person did not know he can request for higher payout when he is eligible.

For old scheme, payout is calculated to last to about 82 yo. If above 82, payout will spread over 5 years based on last top-up.

 

[badsector]

I must be dumb to top up if he is under CPF Life. Anyway he is not eligible to join CPF Life

For higher payout, if the top up is sufficient according to the recipient's age, you need to apply.

Haven't you read of a case where the person's RA will last till 130 yo simply because that person did not know he can request for higher payout when he is eligible.

For old scheme, payout is calculated to last to about 82 yo. If above 82, payout will spread over 5 years based on last top-up.

i see that u've top up 3 times. All with cash plus ur OA transfer to him?

But the increased payout only starts from apr 2016. not immediate.
I suspect..Was it becoz his DOB was april?

 

[SBC]

Went CPF office last week. Was told that there are 3 different version of MSS.

Anyone know their key difference?

 

[SBC]

Always tot that old MSS is better than CPF Life.

But did not have any fact to support my statement.

See Henry's snapshot: With 81k, can have a withdrawal of around $1600.

With CPF Life, at least $240k is required.

 

[henrylbh]

Went CPF office last week. Was told that there are 3 different version of MSS.

Anyone know their key difference?

You understand as 3 versions and they told you so? As far as I know, there is only one MSS but several ways to apply or administer it according to many complicating or confusing rules and not all are known to the public.

 

[badsector]

Always tot that old MSS is better than CPF Life.

But did not have any fact to support my statement.

See Henry's snapshot: With 81k, can have a withdrawal of around $1600.

With CPF Life, at least $240k is required.

Life payout vs term payout mah.

but i agree, old scheme was better

 

[henrylbh]

i see that u've top up 3 times. All with cash plus ur OA transfer to him?

But the increased payout only starts from apr 2016. not immediate.
I suspect..Was it becoz his DOB was april?

Why would I want to top his RA with cash if I can top up my own CPF? Very important point to note is that transfer of OA to recipient will be returned to giver upon death of recipient. But if cash, it will go to nominee or estate.

Don't assume increased payout got to do with DOB. If you top up before 15 of the month, you can request higher payout the next month or anytime later, and provided your top up amount is enough based on age.

 

[henrylbh]

Always tot that old MSS is better than CPF Life.

But did not have any fact to support my statement.

See Henry's snapshot: With 81k, can have a withdrawal of around $1600.

With CPF Life, at least $240k is required.

Most are already confused. Highlighting above will only add more confusion

 

[SBC]

This mess was created by zhen hu whau, who has claimed to have done many education & awareness.

What's the outcome now?

 

[Arsenalz]

My mum is 65 this year. So, I can top up 7k and get tax rebate. But how will the money be paid to her? She need to request for monthly payout? Via singpass? Thanks.

 

[Earnasyougrow]

Most are already confused. Highlighting above will only add more confusion

Henry's father is able to get higher payout due to his old age and lower drawn down age, and not due to the CPF sum inside. Correct me if I am wrong Henry. Agreed that lay man may not totally understand how cpf and hdb sometime work as the policies keep changing.

 

[SBC]

Was there a calculator for monthly draw down for the old MSS?

Still topping 7k every year to my dad. Amount is $500+ only. RA amount is over 30k.

 

[SBC]

You understand as 3 versions and they told you so? As far as I know, there is only one MSS but several ways to apply or administer it according to many complicating or confusing rules and not all are known to the public.

Was told by CPF officer that there are 3 MSS versions.
They will need parent NRIC to check further. Did not proceed to check further though.

 

[elnewbie]

Only the principal sum would be returned to giver. The interesr generated on these topup monies will be given to nominee. If you are also the nominee, thats fine.

Why would I want to top his RA with cash if I can top up my own CPF? Very important point to note is that transfer of OA to recipient will be returned to giver upon death of recipient. But if cash, it will go to nominee or estate.

Don't assume increased payout got to do with DOB. If you top up before 15 of the month, you can request higher payout the next month or anytime later, and provided your top up amount is enough based on age.

 

[oceanicmanta]

Was there a calculator for monthly draw down for the old MSS?

Still topping 7k every year to my dad. Amount is $500+ only. RA amount is over 30k.

i dont think got calculator.

cpf also asked for my dad's nric to check, so I re-phrased my questions to be hypotethical instead of person specific, they then replied to my questions.

 

[henrylbh]

i dont think got calculator.

cpf also asked for my dad's nric to check, so I re-phrased my questions to be hypotethical instead of person specific, they then replied to my questions.

The counter staff surely got a calculator but they are not giving to us when I ask for it

I asked for the max payout for my father based on a few different top-up amounts and the staff had to key in the amounts and left me know the answers.

Based on those few answers and the past payouts, I could roughly guess the payout on future top-ups as my father's payout started with 690 based on my first top-up, then to 1098 and now 1611. So if I were to top-up 30k anytime, I can make a calculated guess of the new payout

 

[henrylbh]

Only the principal sum would be returned to giver. The interesr generated on these topup monies will be given to nominee. If you are also the nominee, thats fine.

Yes interest will not be returned to the giver. This can only happen if the recipient don't ask for payout

 

[henrylbh]

My mum is 65 this year. So, I can top up 7k and get tax rebate. But how will the money be paid to her? She need to request for monthly payout? Via singpass? Thanks.

You should be able to claim tax relief on the 7k top-up.

If she got only 7k in RA, I think she will get a min of 297 monthly and the RA will be exhausted in about 24 months. Even if she got more than 7k, most likely the payout will be the same, unless her RA is gao gao.

She need to apply for the payout either by completing the application form or via online with singpass and 2FA.

 

[Arsenalz]

You should be able to claim tax relief on the 7k top-up.

If she got only 7k in RA, I think she will get a min of 297 monthly and the RA will be exhausted in about 24 months. Even if she got more than 7k, most likely the payout will be the same, unless her RA is gao gao.

She need to apply for the payout either by completing the application form or via online with singpass and 2FA.

Thanks. Her RA was empty. Will probably top up some for her.