CPF Account Value Thread 2025

[Potent]

No, that's not an option. Not as you've written it.

To repeat, "choosing the Basic Retirement Sum" means withdrawing funds from your Retirement Account. As cash. Whether you're able to redeposit some or all of those funds into your CPF Ordinary Account is a separate question. Refer to the CPF Board's "What happens when you reach age 55" page for details.

I don't think we know the Basic Retirement Sum for 2028 yet since it hasn't been announced. For 2027 it'll be $114,100. (The Full Retirement Sum will be $228,200.) If you celebrate your 55th birthday in 2027, and with those SA and OA balances or similar, the CPF Board will sweep $228,200 into your new Retirement Account, mostly or perhaps entirely from SA (after 2026 interest). The remainder will stay in OA. You then have the option (with a property pledge or charge) to withdraw up to $114,100 from your RA in a lump sum.(*) Less if you've made cash top ups to your Special Account.

Since you have the FRS (or nearly so), you can't "choose the BRS" at age 55 without a withdrawal from your RA. It's tautological. If you want to withdraw up to $114,100 from your Retirement Account later, at age 59 for example, you can do that.

What you do with that lump sum cash is up to you, but if you want it to go back into CPF it will be subject to applicable contribution and top up limits.

As I wrote, when you make any lump sum withdrawal from your Retirement Account you permanently reduce the maximum amount you can have in your Retirement Account. The RA limit (the Enhanced Retirement Sum) is computed inclusive of prior lump sum withdrawals. Maybe this effective reduction in the ERS won't matter in your situation. It depends on how many dollars you want to put in. But it might matter if you want to put a lot of dollars into (or back into) your RA.

It's generally not a good idea to take dollars out of your RA unless you really need them (for urgent needs).(*)

There's that too.

(*) You'll have lots of OA dollars you could withdraw at any time in any increment without touching your RA and without requiring a property pledge or charge. OA earns 2.5% interest, and RA earns 4.0% interest.

So meaning. The ra will be the amount of the year at Frs value. (extra money can be withdrawn from ra, if pledge hdb) The rest jus goes to oa for withdrawal. Noted thank you for spending time to make. It less fuddle for. Me.

 

[BBCWatcher]

So meaning. The ra will be the amount of the year at Frs value.

In your case, yes. You already have nearly the Full Retirement Sum in your Special Account, plus you've got lots of Ordinary Account dollars. For those who have less CPF savings who cannot fund their new Retirement Accounts at age 55 to the Full Retirement Sum, it'll be less.

(extra money can be withdrawn from ra, if pledge hdb)

You can pledge a private property if you have one. Moreover, any pledged property must be a freehold or a leasehold that runs at least to your 95th birthday.

You do not have to pledge any property, or have a property charge, if you do not withdraw any lump sum funds from your Retirement Account.

The rest jus goes to oa for withdrawal.

Yes, once the CPF Board reaches your age 55 Full Retirement Sum it stops funding your new Retirement Account. Any "surplus" lands in your Ordinary Account. Your OA becomes liquid at age 55 in these circumstances.

If you want to fund your RA to a higher amount, or if you want to withdraw funds from your RA, you have to take action. The "do nothing" default RA funding level is the FRS, assuming it's obtainable.

The CPF Board will explain these options to you again shortly before your 55th birthday. (They'll send you a guide.)

 

[Potent]

In your case, yes. You already have nearly the Full Retirement Sum in your Special Account, plus you've got lots of Ordinary Account dollars. For those who have less CPF savings who cannot fund their new Retirement Accounts at age 55 to the Full Retirement Sum, it'll be less.

You can pledge a private property if you have one. Moreover, any pledged property must be a freehold or a leasehold that runs at least to your 95th birthday.

You do not have to pledge any property, or have a property charge, if you do not withdraw any lump sum funds from your Retirement Account.

Yes, once the CPF Board reaches your age 55 Full Retirement Sum it stops funding your new Retirement Account. Any "surplus" lands in your Ordinary Account. Your OA becomes liquid at age 55 in these circumstances.

If you want to fund your RA to a higher amount, or if you want to withdraw funds from your RA, you have to take action. The "do nothing" default RA funding level is the FRS, assuming it's obtainable.

The CPF Board will explain these options to you again shortly before your 55th birthday. (They'll send you a guide.)

At this stage and age, can continue to jus use the oa as an account by topping up money into oa?

 

[BBCWatcher]

At this stage and age, can continue to jus use the oa as an account by topping up money into oa?

There are essentially 3 direct and indirect options for a CPF member age 55+ to deposit money into his/her Ordinary Account:

• If the member has met at least the Full Retirement Sum in his/her Retirement Account (or at least the Basic Retirement Sum with property pledge/charge) and keeps his/her MediSave Account at the Basic Healthcare Sum, MediSave interest and the portion of compulsory contributions allocated to MediSave will flow into OA. In other words, "filling up" MediSave (with Voluntary Contributions) can indirectly push money into OA.
• Make an "all 3 account" Voluntary Contribution ("VC3A"). The VC3A must fit within the CPF Annual Limit ($37,740), but most members age 55+ have at least some room below the CPF Annual Limit. The same conditions apply in terms of RA and MA funding levels. That is, if sufficient retirement funds are set aside in RA and if MA is "full," 100% of the VC3A flows into OA.(*)
• Partial or full repayment of OA used for housing.

(*) There's a weird "hack" for self-employed people age 55+. They qualify for tax relief with these voluntary contributions. In this scenario they can effectively "tax launder" money: if 100% of their VC3A lands in OA, they get tax relief and have the option to withdraw the money from OA. Have fun with that one if you'd like, and if you qualify. It's a "money machine."

 

[dgeralds]

There are essentially 3 direct and indirect options for a CPF member age 55+ to deposit money into his/her Ordinary Account:

• If the member has met at least the Full Retirement Sum in his/her Retirement Account (or at least the Basic Retirement Sum with property pledge/charge) and keeps his/her MediSave Account at the Basic Healthcare Sum, MediSave interest and the portion of compulsory contributions allocated to MediSave will flow into OA. In other words, "filling up" MediSave (with Voluntary Contributions) can indirectly push money into OA.
• Make an "all 3 account" Voluntary Contribution ("VC3A"). The VC3A must fit within the CPF Annual Limit ($37,740), but most members age 55+ have at least some room below the CPF Annual Limit. The same conditions apply in terms of RA and MA funding levels. That is, if sufficient retirement funds are set aside in RA and if MA is "full," 100% of the VC3A flows into OA.(*)
• Partial or full repayment of OA used for housing.

(*) There's a weird "hack" for self-employed people age 55+. They qualify for tax relief with these voluntary contributions. In this scenario they can effectively "tax launder" money: if 100% of their VC3A lands in OA, they get tax relief and have the option to withdraw the money from OA. Have fun with that one if you'd like, and if you qualify. It's a "money machine."

Hi BBCWatcher. Im 59 now and planning to retire in 2 or 3 years time. After retirement i will have rental income and have to manage SRS drawdown too without much tax. Wondering how can i get self employed and pay CPF to myself. Can I do some free lancing job with minimum salary and contribute to CPF myself to reduce tax? Not sure if this will be considered illegal.

 

[BBCWatcher]

Im 59 now and planning to retire in 2 or 3 years time. After retirement i will have rental income and have to manage SRS drawdown too without much tax. Wondering how can i get self employed and pay CPF to myself. Can I do some free lancing job with minimum salary and contribute to CPF myself to reduce tax? Not sure if this will be considered illegal.

In principle you can be self-employed as long as the trade/business is legitimate and IRAS agrees you’re eligible for associated tax treatment. But unless your rental income and SRS withdrawals (combined) are quite high you’re not likely to be in a high tax bracket. I don’t think it makes a lot of sense to bend yourself into a pretzel to avoid reaching the 7% tax bracket, for example (which would mean a substantially lower effective tax rate).

Of course another solution to reduce tax is to reduce your rental income. One way to do that is to sell the rental income producing property.