CPF Account Value Thread 2023

[reddevil0728]

As I am not working, is it possible to top up MA and SA accounts only via voluntary contribution? TIA.

Yes

but subject to applicable limits

 

[sohguanh]

Waiting for them to increase this ceiling. Every year increase FRS but never increase the contribution cap, how they expect people to meet the FRS going forward?

Well you can put your live monies aka cold hard cash into it to fulfill isn't it ?

 

[lzydata]

Another interesting trivia that came out of this is the divergence between the Special and Medisave Account rate and the Retirement Account rate (still at 4% pa) simply because the RA is reviewed annually not quarterly, as they say.

 

[BBCWatcher]

Waiting for them to increase this ceiling. Every year increase FRS but never increase the contribution cap, how they expect people to meet the FRS going forward?

If you're employed in Singapore and consistently hitting the CPF Annual Limit ($37,740) then you should have no trouble meeting the Full Retirement Sum even if you don't top up your Special Account, transfer Ordinary Account dollars to your Special Account, try to keep your MediSave balance at the Basic Healthcare Sum to cause more dollars to flow into your Special Account, or conserve Ordinary Account dollars before your 55th birthday. The contribution cap isn't limiting yet in that respect.

I think the big worry in terms of not hitting the Full Retirement Sum is among self-employed individuals. They only have compulsory MediSave contributions.

 

[reddevil0728]

If you're employed in Singapore and consistently hitting the CPF Annual Limit ($37,740) then you should have no trouble meeting the Full Retirement Sum even if you don't top up your Special Account, transfer Ordinary Account dollars to your Special Account, try to keep your MediSave balance at the Basic Healthcare Sum to cause more dollars to flow into your Special Account, or conserve Ordinary Account dollars before your 55th birthday. The contribution cap isn't limiting yet in that respect.

I think the big worry in terms of not hitting the Full Retirement Sum is among self-employed individuals. They only have compulsory MediSave contributions.

i am not sure if the self employed individuals will be worried about not hitting if they don't see the need to contribute though

 

[henrylbh]

Another interesting trivia that came out of this is the divergence between the Special and Medisave Account rate and the Retirement Account rate (still at 4% pa) simply because the RA is reviewed annually not quarterly, as they say.

I vaguely remember it started of with SMRA and now SMA.

 

[henrylbh]

Waiting for them to increase this ceiling. Every year increase FRS but never increase the contribution cap, how they expect people to meet the FRS going forward?

They should be able to meet FRS with present $6000 monthly ceiling even, if they don't hit the annual contribution limit of $37,740. But with the increase in monthly ceiling to $8,000 in stages, some may still not be able hit the annual contribution limit except for those earning $8k pm. So there is no real need to increase annual contribution limit for the time being. Anyway this group of wage earners is not the real concern as they can easily meet FRS.

 

[BBCWatcher]

i am not sure if the self employed individuals will be worried about not hitting if they don't see the need to contribute though

I'm highly confident some self-employed individuals don't see the need to contribute. My hunch is the government may increasingly feel differently especially given the changed nature of self-employment.

 

[reddevil0728]

I'm highly confident some self-employed individuals don't see the need to contribute. My hunch is the government may increasingly feel differently especially given the changed nature of self-employment.

yea hence no worry for them

 

[henrylbh]

I'm highly confident some self-employed individuals don't see the need to contribute. My hunch is the government may increasingly feel differently especially given the changed nature of self-employment.

I know several SEP, including accountants and businessmen, don't contribute to CPF beyond the mandatory medisave. Worst they have negative view on CPF. And one of them mentioned that he can made more with money on hand than what CPF or Insurance could yield

 

[andyhtc]

Only 1 month+ to the end of the 2023.

My SA has finally exceeded ERS and it will go beyond $300k by the end of this year before interest.

I'm also waiting for another batch of savings to max out my 2023 SRS.

Saving hard for my coffin money

 

[andyhtc]

CPF to launch nationwide project to encourage mature members to think about retirement plans​

SINGAPORE – Think beyond short-term gains and losses: This is one of the key messages the Central Provident Fund Board hopes to drive home in its members.

The board wants to encourage them to rethink their retirement plans and improve their financial situation through an islandwide project in the second half of 2024.

The Heartlands Engagement Project’s primary target audience is mature CPF members between the ages of 36 and 54. They would have been in the workforce for a few years, and still have sufficient time to make a significant impact on their retirement planning.

https://www.straitstimes.com/singap...ature-members-to-think-about-retirement-plans

 

[wira]

Only 1 month+ to the end of the 2023.

My SA has finally exceeded ERS and it will go beyond $300k by the end of this year before interest.

I'm also waiting for another batch of savings to max out my 2023 SRS.

Saving hard for my coffin money

there is no tax relief to contribute beyond FRS to ERS right ?

 

[Nofear40]

there is no tax relief to contribute beyond FRS to ERS right ?

No….although I am hoping

 

[BBCWatcher]

there is no tax relief to contribute beyond FRS to ERS right ?

Yes there is, if you're self-employed. Self-employed individuals are required to contribute to their MediSave Accounts only. However, they are eligible for tax relief on their Voluntary Contributions to their other accounts, subject to the CPF Annual Limit. Even when their Special Accounts are at or above the Full Retirement Sum.

 

[andyhtc]

there is no tax relief to contribute beyond FRS to ERS right ?

No. I transferred quite a bit (I cannot remember the actual amount) from OA to SA about 10 years ago to enjoy the 4% interest. It is quite a long journey to hit $300k in my SA via CPF contributions. My cash goes into properties and other investments such as T-Bills and SSBs.

 

[andyhtc]

This year this thread is relatively quiet.

I guess most, likely myself, have shifted their OA into T-Bills.

 

[s0crates]

This year this thread is relatively quiet.

I guess most, likely myself, have shifted their OA into T-Bills.

Still all invested in index funds for me at least. Younger chaps can afford to take more risk. Not like sg government, cpf or gic need my money anyway hehe

 

[Oldnerd79]

Only 1 month+ to the end of the 2023.

My SA has finally exceeded ERS and it will go beyond $300k by the end of this year before interest.

I'm also waiting for another batch of savings to max out my 2023 SRS.

Saving hard for my coffin money

Good for you. may I ask how old are you? My SA is 256k now and probably will either tio pok or I quit my job soon so I will want to keep more in SA instead of topping up to ERS when I'm 55.

 

[andyhtc]

Good for you. may I ask how old are you? My SA is 256k now and probably will either tio pok or I quit my job soon so I will want to keep more in SA instead of topping up to ERS when I'm 55.

Mid 40s.

I will just cruise along in my job when I hit 50s.

Mid 50s to retire by default, if no stress then max 60.