CPF @ 55 & after

[rrr2015]

after reading CPF website again & again, I get more & more confused! so hoping someone kind can help shed some light ......

my confusion starts @ 55 though it's still years before i reach
1. if OA + SA meets BRS / FRS
- new RA with BRS / FRS created
- excess can be fully withdrawn
- excess can also be left in OA earning 2.5% p/a
- OA can be fully/partially withdrawn annually

2. if SA meets BRS / FRS
- same as above
Q1 what happen to excess SA?
Q2 can SA be fully/partially withdrawn annually?

appreciate your help to clear my doubts & questions

TQ!

 

[SBC]

Are you 70% or 30%?

 

[kehyi4]

after reading CPF website again & again, I get more & more confused! so hoping someone kind can help shed some light ......

my confusion starts @ 55 though it's still years before i reach
1. if OA + SA meets BRS / FRS
- new RA with BRS / FRS created
- excess can be fully withdrawn
- excess can also be left in OA earning 2.5% p/a
- OA can be fully/partially withdrawn annually

2. if SA meets BRS / FRS
- same as above
Q1 what happen to excess SA?
Q2 can SA be fully/partially withdrawn annually?

appreciate your help to clear my doubts & questions

TQ!

I'll try to help

If SA meets BRS / FRS
- RA created with BRS/FRS funds from SA, OA is untouched
- any excess of FRS can be fully withdrawn. BRS is a bit trickier as funds received as top-ups are earmarked for RA and cannot be withdrawn, even if you meet BRS
- whatever is left over in SA and OA will continue to earn the respective interest
- you can make partial withdrawals at any time after 55
- you can choose to withdraw only the interest earned, leaving the principal intact, rather like a FD

 

[rrr2015]

thanks kehyi4!

I'll try to help

If SA meets BRS / FRS
- RA created with BRS/FRS funds from SA, OA is untouched
- any excess of FRS can be fully withdrawn. BRS is a bit trickier as funds received as top-ups are earmarked for RA and cannot be withdrawn, even if you meet BRS
- whatever is left over in SA and OA will continue to earn the respective interest
- you can make partial withdrawals at any time after 55
- you can choose to withdraw only the interest earned, leaving the principal intact, rather like a FD

after rereading CPF website, think i finally understood about BRS. basically, $FRS will be move over to RA @ 55 (FRS or BRS). $½FRS will be from RA!

looking at different perspective, so if one opt for BRS and ....
1. OA+SA meets or exceed $FRS :

• $FRS -> RA
• RA -> $½FRS (in exchange for property pledge)

2. OA+SA does not meet $FRS

• $½FRS -> RA
• still "OWE" CPF $½FRS (wavier due to property pledge)

that's why need to put $½FRS back when you sell your property!
Qn - so if one sell property & put back $½FRS, do they belong to BRS or FRS?

any which way, only OA + SA in excess of $FRS are clear for withdrawal.

hope my understanding is right now?

 

[rrr2015]

Are you 70% or 30%?

am just trying to understand CPF better

 

[ashao911]

after reading CPF website again & again, I get more & more confused! so hoping someone kind can help shed some light ......

my confusion starts @ 55 though it's still years before i reach
1. if OA + SA meets BRS / FRS
- new RA with BRS / FRS created
- excess can be fully withdrawn
- excess can also be left in OA earning 2.5% p/a
- OA can be fully/partially withdrawn annually

2. if SA meets BRS / FRS
- same as above
Q1 what happen to excess SA?
Q2 can SA be fully/partially withdrawn annually?

appreciate your help to clear my doubts & questions

TQ!

SINGAPORE: The Republic's retirement system is becoming increasingly sustainable - according to a study released by insurance and asset manager Allianz on Monday (Nov 30).

However, the study also showed that existing schemes are not enough to maintain the same standard of living after retirement.

 

[rrr2015]

SINGAPORE: The Republic's retirement system is becoming increasingly sustainable - according to a study released by insurance and asset manager Allianz on Monday (Nov 30).

However, the study also showed that existing schemes are not enough to maintain the same standard of living after retirement.

looking at the payout, no doubt, the schemes won't be enough for one to maintain lifestyle standard similar period when you were working.

but i feel that should be able to cover bare essentials. with sufficient build up in your cash/investment asset, you should be able to enjoy a better lifestyle.

 

[Perisher]

Anyone thinking CPF can maintain their current lifestyle is kidding themselves. Think most people know that CPF is a backup and the report seems to suggest that it is a good enough backup.

 

[rrr2015]

Anyone thinking CPF can maintain their current lifestyle is kidding themselves. Think most people know that CPF is a backup and the report seems to suggest that it is a good enough backup.

Yes, either backup or supplementary to ones cash/invest assets.
perhaps CPF sending the wrong message?

i think none pensions around the world can fully maintain retirees desired lifestyle in own country, probably why many western countries retirees choose to move to asia (malaysia, thailand, vietnam etc)

 

[henrylbh]

Anyone thinking CPF can maintain their current lifestyle is kidding themselves. Think most people know that CPF is a backup and the report seems to suggest that it is a good enough backup.

But I place CPF payout as my backup and I will delay the drawdown

 

[Perisher]

But I place CPF payout as my backup and I will delay the drawdown

Haha, you not simpur leh... rich enough mah.
I'm talking about the majority.

 

[dork32]

But I place CPF payout as my backup and I will delay the drawdown

if you delay the drawdown, will the amount per month increase? otherwise, it is advisable to drawdown as quickly as possible.

 

[highsulphur]

if you delay the drawdown, will the amount per month increase? otherwise, it is advisable to drawdown as quickly as possible.

If you are under the minimum sum scheme and not cpf life, your monthly withdrawal will increase when you postpone your drawdown.

 

[wts2013]

if you delay the drawdown, will the amount per month increase? otherwise, it is advisable to drawdown as quickly as possible.

"From January 2016, you have the option to start your CPF LIFE payouts later, up to age 70. For each year deferred, your monthly CPF LIFE payouts permanently increase by about 6% - 7%." hahaha

 

[dork32]

If you are under the minimum sum scheme and not cpf life, your monthly withdrawal will increase when you postpone your drawdown.

for ms scheme, does not matter whether you draw down or not. your money is still your money. if you die, what is left is given to your kids, unless you dont want to give your money to your kids.

 

[dork32]

"From January 2016, you have the option to start your CPF LIFE payouts later, up to age 70. For each year deferred, your monthly CPF LIFE payouts permanently increase by about 6% - 7%." hahaha

Based on 6.5% increase per year, and 4% rate of return, every year you delay your drawdown, you require to live 21 more years to get back the money that you forgo during the first year.

62 +21 = 83. i think i may not be able to make it to 83.

So, i will probably not delay my drawdown.

if you delay till 70, you will have to live up to 62 + 8*21 = 230 to make up for the amount lost during the first 8 years.

My calculation is based on the same bequest whether you delay your drawdown or not. Can this be assumed?

 

[RoLanTo]

for MS scheme.. is it the payout period 20years fixed?

e.g my father have 24000 in total, in MS scheme
drawdown: age 65
20years
24000/20/12 = 100 per month...

20years is fix? after 24000 draw finish.. no more money disbursement liao?

 

[henrylbh]

for MS scheme.. is it the payout period 20years fixed?

e.g my father have 24000 in total, in MS scheme
drawdown: age 65
20years
24000/20/12 = 100 per month...

20years is fix? after 24000 draw finish.. no more money disbursement liao?

Under MS scheme, the payout period is about 20 years from drawdown age or until the retirement amount is exhausted based on the fixed payout amount. But I think there is a min payout and his 24k may not last 20 years.

 

[henrylbh]

Based on 6.5% increase per year, and 4% rate of return, every year you delay your drawdown, you require to live 21 more years to get back the money that you forgo during the first year.

62 +21 = 83. i think i may not be able to make it to 83.

So, i will probably not delay my drawdown.

My aunt retired at 55 with pension. Around age 70+ she sold her house, not flat, and gave some to the children and have a good time with the balance. At about 80, she opted lump sum payment in lieu of pension as she felt time is running out. With the money, she went on a month trip to see the world. Now she is 94 and broke Luckily she got a son to look after her. Each time I visit her, she wished the Lord would take her. But she is playing mahjong and si shet once a week How to go

 

[Genosis]

My aunt retired at 55 with pension. Around age 70+ she sold her house, not flat, and gave some to the children and have a good time with the balance. At about 80, she opted lump sum payment in lieu of pension as she felt time is running out. With the money, she went on a month trip to see the world. Now she is 94 and broke Luckily she got a son to look after her. Each time I visit her, she wished the Lord would take her. But she is playing mahjong and si shet once a week How to go

She is one tough lady.