CPF Account Value Thread 2024

[inmyopinion]

So 1 Jan tomorrow, are we able to further top up our CPF assuming it has hit the cap in 2024 based on the increase in ERS?

For those who reached 55 & above.

ERS Is the max amount u can top up your RA after 55 yo

ERS is optional. You can top up to prevailing FRS for the year.

Tax relief cap is 8k shared between MA and Ra for 55 and above

Interest is not included in the computation for FRS computation in RA, unlike SA. (For those who are 55 yo and below, you cannot top up anything once u reached the FRS).


Example:
You are 55 yo this year, set aside FRS $205,800
2025 : FRS is $213,000, you can top up $7,200 and get tax relief for this amount.
Note: NO tax relief for topping up to ERS. Tax relief - top up to prevailing FRS amount. No tax relief beyond prevailing FRS.

https://www.cpf.gov.sg/service/article/what-are-the-conditions-for-me-to-enjoy-tax-relief

You can also log into your CPF account - and check under retirement dashboard.

 

[Kfc2019]

just for info - For those below 55 years old who plan to "top up" their SA accounts to meet the FRS, they will still be entitled to monthly CPF contributions to their SA from their salary.

 

[hwmook]

Hi, just wanna understand ur tot process and learn from it. Y not the other way rd? Maximise cpf life output as early as possible and draw on portfolio in ur later yrs?

I am afraid my brain doesn't work so well when I am 85 so having some fixed money coming in will be better during old age. I can manage my own investments during the earlier years

 

[BBCWatcher]

I am afraid my brain doesn't work so well when I am 85 so having some fixed money coming in will be better during old age. I can manage my own investments during the earlier years

To put it another way, it's unreasonable to assume that you'll be sane, competent, and avoid being a victim of theft or fraud up until the moment you expire. Obviously we hope none of those circumstances occur. But obviously they're very possible, and it's unreasonable to assume they're not.

 

[laokorkor]

https://www.straitstimes.com/singap...falls-to-1-in-11-among-older-adults-imh-study

you guys should see this, dementia prevalence among 85 yo is ~50%. Be paranoid! LOL!

 

[compro_1975]

Yes indeed. The hike in the ERS on January 1, 2025, will be a big one. It'll jump from $308,700 to $426,000. Starting on January 1, 2025, every CPF member with a Retirement Account will be able to add at least $117,300 to their RA if they wish. The vast majority will be able to add more, but at least $117.3K.

Of course it usually doesn't make sense to add funds on the 1st day of the month. You earn some bank interest on your cash (presumably), if nothing else. And you don't get any extra CPF interest on cash you deposit into your RA on January 1 compared to January 31.

On the last sentence, The interest is not credited on daily basis?

 

[BBCWatcher]

On the last sentence, The interest is not credited on daily basis?

I think you're asking whether CPF interest is computed on a daily basis. (Bank accounts don't typically credit interest on a daily basis.) The answer is no.

 

[compro_1975]

I think you're asking whether CPF interest is computed on a daily basis. (Bank accounts don't typically credit interest on a daily basis.) The answer is no.

From your experience they use which day balance for the computation?

 

[JuniorLion]

On the last sentence, The interest is not credited on daily basis?

Interest is computed monthly, based on the lowest amount in that month.

 

[royalmix]

CPFB is not a bank. It has a "very complicated"** way of doing things.

It definitely pays to understand the nitty gritty how it works, then you can see the indepth pros and cons of each CPF Life Plan, what and when actions to be taken, if you want to "max your interest earnings"!

So much "hints" for now!

(If you are interested to learn more, just google hardwarezone for the respective CPF threads for the discussions.)

** why "very complicated"? cos you cannot find the answers even after reading thru all the lines in the website!

 

[kickass22]

To put it another way, it's unreasonable to assume that you'll be sane, competent, and avoid being a victim of theft or fraud up until the moment you expire. Obviously we hope none of those circumstances occur. But obviously they're very possible, and it's unreasonable to assume they're not.

I want to emphasize that in cases of dementia or cognitive decline in later years, the most important factor isn't your financial plan but whether you have a trusted caregiver or individual to assist you.

You might have an escalating plan or ample savings, bonds, and other investments for your earlier years. However, without a trustworthy caregiver, you could still be at risk of financial exploitation. Money transferred from CPF to your bank account is not inherently safe—it can still be misused or taken by others through various means.

This highlights that an escalating plan does not address the issue of cognitive decline; they are entirely separate concerns.

Your financial plan should be tailored to your personal needs, such as health, dependents, legacy goals, and whether you prioritize using your cash savings or CPF funds first. Ultimately, a strong financial plan is only effective when coupled with safeguards against exploitation

 

[BBCWatcher]

This highlights that an escalating plan does not address the issue of cognitive decline; they are entirely separate concerns.

I disagree at least as you've written it. CPF LIFE, and particularly the CPF LIFE Escalating Plan, could certainly be helpful in such scenarios. Financial and responsible caregiving needs are not "entirely separate." They're intertwined to some extent.

 

[kickass22]

I disagree at least as you've written it. CPF LIFE, and particularly the CPF LIFE Escalating Plan, could certainly be helpful in such scenarios. Financial and responsible caregiving needs are not "entirely separate." They're intertwined to some extent.

Certainly it can be helpful. Any form of financial plan can be helpful. Your assertion that CPF LIFE Escalating Plan is the only way is what what I disagree with.

 

[BBCWatcher]

Your assertion that CPF LIFE Escalating Plan is the only way is what what I disagree with.

Where did I write "only way"?

I think the Escalating Plan is (broadly) the most effective longevity insurance the CPF Board offers. Which shouldn't be a controversial sentence, but that sentence is nowhere near "only way."

 

[kickass22]

Where did I write "only way"?

I think the Escalating Plan is (broadly) the most effective longevity insurance the CPF Board offers. Which shouldn't be a controversial sentence, but that sentence is nowhere near "only way."

You didn’t explicitly state that CPF Life escalating is the only way, but when others propose alternative feasible options, you dismiss them and imply that CPF Life escalating is the only correct choice

E.g. " Y’all seem to be assuming nobody is going to steal and/or blow your elder self’s life savings. Y’all are wrong. It could happen. It does happen. This is last line of financial defense stuff. "This is cheap insurance against this class of risks. Do it. Don’t fool around. "

 

[BBCWatcher]

You didn’t explicitly state that CPF Life escalating is the only way, but when others propose alternative feasible options, you dismiss them and imply that CPF Life escalating is the only correct choice

I try to write with care, and I did here. "This is cheap insurance" quite obviously means there are other, more expensive ways to insure against this class of longevity-related risks.

 

[JuniorLion]

You didn’t explicitly state that CPF Life escalating is the only way, but when others propose alternative feasible options, you dismiss them and imply that CPF Life escalating is the only correct choice

E.g. " Y’all seem to be assuming nobody is going to steal and/or blow your elder self’s life savings. Y’all are wrong. It could happen. It does happen. This is last line of financial defense stuff. "This is cheap insurance against this class of risks. Do it. Don’t fool around. "

He does that all the time.

 

[compro_1975]

what time will the super computer start working?

 

[hwarzoner]

Service Unavailable​

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Please check back later to perform your CPF transactions online.

Thank you for your patience. We apologise for any inconvenience caused.

 

[sdexxxxd]

Available to view liao before 8am