CPF Account Value Thread 2024

[Nofear40]

Here's another possible suggestion, starting with an observation. You're getting fairly close to the Basic Retirement Sum (BRS) which is $102,900 for 2024. Congratulations! You're at $93,567.80 (OA+SA), so you're currently only $9,332.20 away. The BRS increases each year, but 4%/year interest increases even faster.

OK, so why does this observation matter? Well, if you have a spouse who has zero CPF savings, or lower CPF savings than you have, then it can matter. Once your OA+SA reaches the current BRS then OA dollars above that amount are available to transfer to your spouse's SA. And cross-spousal transfers are really powerful when your spouse hasn't maxed out bonus interest yet. It means your household can upgrade your OA dollars earning only 2.5% interest to your spouse's SA dollars earning 5.08% interest (1Q2024 interest rate; floor rate is 5.00% interest). That's an even bigger upgrade.

There's no tax relief for OA to SA transfers (either for self or spouse), but the higher interest is enticing if you don't need all those OA dollars held back as OA (i.e. for housing). Self OA to SA transfers mean you get to the BRS that much faster, unlocking potential cross-spousal OA to SA transfers as soon as 2025. And further compulsory CPF contributions may unlock this cross spousal OA to SA transfer option as soon as this year (2024).

Of course if you're not married then the BRS is not the correct threshold for these purposes (OA to family SA/RA transfer options).

May I know why the point “if you are not married”? Thanks

 

[BBCWatcher]

May I know why the point “if you are not married”? Thanks

If you want to transfer OA dollars to a spouse's SA (or RA) then your OA+SA only needs to meet the BRS. Transfers to other family members require a higher threshold. If you're not married then you don't have a spouse, so this first option (OA transfers to your spouse) just isn't available.

 

[Shion]

Here's another possible suggestion, starting with an observation. You're getting fairly close to the Basic Retirement Sum (BRS) which is $102,900 for 2024. Congratulations! You're at $93,567.80 (OA+SA), so you're currently only $9,332.20 away. The BRS increases each year, but 4%/year interest increases even faster.

OK, so why does this observation matter? Well, if you have a spouse who has zero CPF savings, or lower CPF savings than you have, then it can matter. Once your OA+SA reaches the current BRS then OA dollars above that amount are available to transfer to your spouse's SA. And cross-spousal transfers are really powerful when your spouse hasn't maxed out bonus interest yet. It means your household can upgrade your OA dollars earning only 2.5% interest to your spouse's SA dollars earning 5.08% interest (1Q2024 interest rate; floor rate is 5.00% interest). That's an even bigger upgrade.

There's no tax relief for OA to SA transfers (either for self or spouse), but the higher interest is enticing if you don't need all those OA dollars held back as OA (i.e. for housing). Self OA to SA transfers mean you get to the BRS that much faster, unlocking potential cross-spousal OA to SA transfers as soon as 2025. And further compulsory CPF contributions may unlock this cross spousal OA to SA transfer option as soon as this year (2024).

Of course if you're not married then the BRS is not the correct threshold for these purposes (OA to family SA/RA transfer options).

Thank you

I am still single.

 

[henrylbh]

This morning I checked my CPF to update my worksheet that record the history of my CPF since day one.

2 hours or so later, I logged in again to check my investment dashboard. Then I could not understand the numbers displayed that don't matched what I updated earlier. Then I checked the transaction details and noted that there were 2 amendments to the numbers ($5.62 changed to $4.62 and $3,146 changed to $3,235) given to me in earlier in the morning.

 

[BBCWatcher]

I am still single.

Well, it's a well-known fact single people become more attractive to prospective partners as soon as their CPF balances (OA+SA) exceed the Basic Retirement Sum.

Just kidding. I think.

 

[andyhtc]

work in progress...

This looks like a mid to late-20s profile.

 

[Nofear40]

Well, it's a well-known fact single people become more attractive to prospective partners as soon as their CPF balances (OA+SA) exceed the Basic Retirement Sum.

Just kidding. I think.

I exceed FRS and is still single
Lol

 

[highsulphur]

I have been a believer of cpf since I started work and wondered how fast I can hit 1m even before the 1m65 movement started .

Transferred from OA to SA while in my first job and was blindsided when CPF life took effect. Subsequently when I was earning more, I missed out the opportunity to get tax relief from topping up my SA due to me hitting my FRS early (due to transfer from OA).

Nonetheless I kept trying to optimise my CPF balance all these years. Didn't invest in anything except in TBills since end of last year. Finally I managed to hit the 1m milestone on 1 Jan before I hit 48 (have to include the TBills yet to mature though).

 

[BBCWatcher]

I exceed FRS and is still single
Lol

I wrote "more attractive." I didn't write "attractive enough."

Transferred from OA to SA while in my first job and was blindsided when CPF life took effect.

I don't know why the introduction of CPF LIFE would've affected your OA to SA transfer decisions even if you view the introduction of CPF LIFE as somehow negative. If you kept more dollars in OA that you didn't actually need for housing you'd definitely be poorer, either with or without CPF LIFE. All the same CPF LIFE-related decisions available to you still apply, including any SA "shielding" decisions you wish to take if still available when the time comes. You still have the same BRS/FRS minimum funding requirements, except if you didn't transfer as many OA dollars into SA as early as you did you'd have fewer dollars to meet those minimum requirements and less liquid remaining cash from age 55+.

Subsequently when I was earning more, I missed out the opportunity to get tax relief from topping up my SA due to me hitting my FRS early (due to transfer from OA).

OK, but MA-related, SRS-related, and family SA/RA-related tax reliefs all still exist. If your MA deductions are at least $5,000 you don't even have any more tax relief opportunity for self (since it's capped at $8,000 SA+MA combined). Transfers also do not affect the amount of SA you can "shield." Cash top-ups might. And you've been earning 1.5 percentage points more interest (or even a bit more now) the whole way along. There's nothing wrong with this combination.

Nonetheless I kept trying to optimise my CPF balance all these years. Didn't invest in anything except in TBills since end of last year. Finally I managed to hit the 1m milestone on 1 Jan before I hit 48 (have to include the TBills yet to mature though).

Well, basically every retirement investment textbook written will tell you that you shouldn't be investing more conservatively than a 90 year old grandmother's model portfolio when you're a working adult in your 40s. I would also point out you seem to be currently completely and utterly dependent on whatever happens to the Singapore dollar. There's some risk in that.

 

[highsulphur]

Well, basically every retirement investment textbook written will tell you that you shouldn't be investing more conservatively than a 90 year old grandmother's model portfolio when you're a working adult in your 40s. I would also point out you seem to be currently completely and utterly dependent on whatever happens to the Singapore dollar. There's some risk in that.

Thank you for your concern. I think my investment is going just fine. What I meant to say is that I have never used my cpf monies for investment and only started using OA to buy T bills during end of 2022. Was just trying to illustrate its possible to get 1m in CPF by 48 without taking market risk.

I do have other investments outside both in SG and outside.

 

[Shion]

This looks like a mid to late-20s profile.

i have crossed into the low 30s

 

[JuniorLion]

I have been a believer of cpf since I started work and wondered how fast I can hit 1m even before the 1m65 movement started .

Transferred from OA to SA while in my first job and was blindsided when CPF life took effect. Subsequently when I was earning more, I missed out the opportunity to get tax relief from topping up my SA due to me hitting my FRS early (due to transfer from OA).

Nonetheless I kept trying to optimise my CPF balance all these years. Didn't invest in anything except in TBills since end of last year. Finally I managed to hit the 1m milestone on 1 Jan before I hit 48 (have to include the TBills yet to mature though).

Nice, 1M48 !

 

[yslvlys]

I have been a believer of cpf since I started work and wondered how fast I can hit 1m even before the 1m65 movement started .

Transferred from OA to SA while in my first job and was blindsided when CPF life took effect. Subsequently when I was earning more, I missed out the opportunity to get tax relief from topping up my SA due to me hitting my FRS early (due to transfer from OA).

Nonetheless I kept trying to optimise my CPF balance all these years. Didn't invest in anything except in TBills since end of last year. Finally I managed to hit the 1m milestone on 1 Jan before I hit 48 (have to include the TBills yet to mature though).

Wow u are super high income earner. Hard to get accumulate 1M in CPF if withdrew from OA to buy house liao.

 

[Nimegen]

I have been a believer of cpf since I started work and wondered how fast I can hit 1m even before the 1m65 movement started .

Transferred from OA to SA while in my first job and was blindsided when CPF life took effect. Subsequently when I was earning more, I missed out the opportunity to get tax relief from topping up my SA due to me hitting my FRS early (due to transfer from OA).

Nonetheless I kept trying to optimise my CPF balance all these years. Didn't invest in anything except in TBills since end of last year. Finally I managed to hit the 1m milestone on 1 Jan before I hit 48 (have to include the TBills yet to mature though).

Very impressive!

 

[culture_counter]

Very impressive indeed! 1M65 concept is the sum total of CPF OA, SA, MA, RA，plus whatever invested in T-Bills using OA. You have achieved!

 

[gnooliew]

Seeking some views on my parent's CPF life planning. She is approaching 70 and will be getting the monthly payout soon as deferred previously. I realise she is under CPF life Basic which has a very different mechanism from Standard and Escalating since RA is not zerorised and monthly payout is from RA first.

Recently, I helped to increase the CPF life premium from <10k to about 35k (funded from the RA) so as to increase the monthly payout. Is increasing the contribution to the premium the best way to increase monthly payout (is there even any alternative way)? I assume even if topup RA without increasing the premium, it wouldn't affect the monthly payout as it stays within the RA due to the mechanism of Basic plan.

Or is it better not to increase the CPF life premium paid as it reduces the amount in the RA which the monthly payout draws from first?

 

[reddevil0728]

Seeking some views on my parent's CPF life planning. She is approaching 70 and will be getting the monthly payout soon as deferred previously. I realise she is under CPF life Basic which has a very different mechanism from Standard and Escalating since RA is not zerorised and monthly payout is from RA first.

Recently, I helped to increase the CPF life premium from <10k to about 35k (funded from the RA) so as to increase the monthly payout. Is increasing the contribution to the premium the best way to increase monthly payout (is there even any alternative way)? I assume even if topup RA without increasing the premium, it wouldn't affect the monthly payout as it stays within the RA due to the mechanism of Basic plan.

Or is it better not to increase the CPF life premium paid as it reduces the amount in the RA which the monthly payout draws from first?

your mum reaching 70 and is on cpf life.

she converted from RSS to CPFL?

 

[gnooliew]

your mum reaching 70 and is on cpf life.

she converted from RSS to CPFL?

I believe so. Her account reflects as CPF Life Basic so definitely on CPFL, not RSS.

 

[BBCWatcher]

Do you even control the CPF LIFE premium with the Basic Plan? My understanding is the CPF Board handles that detail for you, that it's not a knob or dial you can turn. Of course you can top up a Retirement Account (via transfer of OA dollars from family members and/or cash), and that'll boost payouts. My understanding is the CPF Board will automatically recompute CPF LIFE payouts every July when any funds have been added in the preceding year, but you can ask for an earlier recalculation if you want.

 

[JuniorLion]

It's no longer in July. Been updated to recompute for you once you top up. Reflects the next month after it passes the cutoff date.