CPF Account Value Thread 2025

[sglandscape]

dont get what u mean. based on his post, i tot he want to transfer OA to SA eventually, jus not sure if he want to do it now.

shielding to protect his OA from being wipe out by hdb is a different question. if he want to shield and use OA for other purposes like investing, then he sldnt even be considering to transfer to SA.

It's a matter of how much he needs for the house in OA, vs how much he wants the money moves to SA and earn 4%. Once you draw down your hdb loan you don't get to choose anymore.

 

[BBCWatcher]

Slightly off topic. But if I quit my job 1 or 2 months before 35 year old, will I still be eligible for singles scheme BTO at standard priority, or high chance won't get allocate. If I continue working, my salary by 35 probably above 7k then cannot apply liao. I don't mind quit my job just to get a bto. Can treat it as a break also
Once successful liao then go find a new job

Short answer, no. Longer answer, HDB’s income criteria are explained here. You need to be earning an income (otherwise how could you demonstrate your ability to pay the loan?) and be within the income limit to qualify for a 2.6% HDB loan and/or a 2 room flexi BTO flat. HDB raises the income ceiling from time to time, so perhaps it’ll be a little higher when you’re ready.

 

[dork32]

Be extremely careful with what you write! Otherewise it becomes FAKE NEWS!

bbc used 6%. That is real. it is stated in cpf site. you come up with 7%. that is fake. it does not exist anywhere except in your own calculation

 

[dork32]

But then again because used OA for housing, fully paying it off means can start voluntary housing refund.

in a way allowing exceeding annual cap on how much you can pump into cpf.

last time, i do housing refund even though i did not pay up my loan

 

[dork32]

Not helpful at all, you guys got to stop worrying about accrued interest.

people that cannot do math dont get very worried about accrued interest

 

[Shion]

Just take the monthly lowest balance and you get a rough estimate of the interest

Thank you

 

[Lss]

last time, i do housing refund even though i did not pay up my loan

Guess I was mistaken. It's good

 

[chong18]

You’re right. I don’t understand this particular “peace of mind” because it’s the very opposite of peace in rational minds. I don’t understand why some people pay down 2.6% loans faster than required when ~3.0% T-bills exist. And risk losing most of that money if they should die too soon because their survivors can’t make Home Protection Scheme claims. And risk being forced to sell their HDB flat to raise funds in any household financial emergency because they‘ve drained liquid assets and are months or years closer to cashflow problems. And they have lower net worths because they wouldn’t even loan money back to the same government for a higher interest rate!

It’s absolutely bonkers. Excepting gambling problems, substance abuse, or profligate spending habits perhaps. In those cases sweeping as many dollars as possible as quickly as possible into HDB flat equity might help a little

Not everything can be explained using the rational mind and it's ok that you don't understand. For people who understand they will know that sometimes this peace of mind is priceless. What makes you think that I have drained liquid assets to pay off my mortgage? Of course I had taken all things into consideration before deciding to pay off early.

 

[BBCWatcher]

What makes you think that I have drained liquid assets to pay off my mortgage?

Liquid at least for housing. Mortgage lenders in Singapore generally only accept Singapore dollars, either in cash or from OA. Moreover, OA becomes completely liquid to nominees at any age when the CPF member dies.

”Peace of mind” isn’t anything anybody else can operate on. Some people say smoking marijuana gives them ”peace of mind.” Maybe it does! I don’t doubt it. But nobody can (or should) apply that information to their lives.

 

[dork32]

Guess I was mistaken. It's good

not always
last time loan 1.3%, cpf 2.5%. might as well as put into cpf

now loan 2.9%, cpf 2.5%. no sense to put in cpf

 

[BBCWatcher]

not always
last time loan 1.3%, cpf 2.5%. might as well as put into cpf
now loan 2.9%, cpf 2.5%. no sense to put in cpf

If you pay down a mortgage faster than required you're really betting that your best alternative investment options are unlikely to beat the average cost of the loan over its remaining term and that you can tolerate a smaller buffer if there's a household emergency such as a bout of unemployment, large medical bills insurance doesn't cover, or other financial calamity. If you have HDB Home Protection Scheme or other MRTA coverage you're also betting that you won't die (or otherwise fall into "TPD" status) within the loan term.

At some point I'll outline in a separate post the math behind why I think the odds are typically well stacked against you if you pay down a 2.6% HDB loan faster than required. Then extend that outline to bank loans.

 

[maumu]

paid off my loan using cpf when the loan rates shot up to high 2.xx%... 3.xx% cos I rather pay myself (accrued interest) than pay to the bank.

also do monthly voluntarily housing refund because I see it as a way to build savings for retirement.

I'm risk adverse when it comes to investment in shares and equities, and I don't fancy paying banks (again) or agents to maintain funds/UTs. good funds are super hard to come by, and most profits are makan by those fees and charges anyway - feeding the wealth of these bankers and whatnots.

money we earn, we ownself decide how to spend it. no need to follow the crowd blindly... as long as can sleep peaceful at night.

all the noise about opportunity costs is up to one's appetite for risk and long-term view of one's retirement nest.

 

[DriftKing]

Check with shifus here, one parent 65+ starting to get cpf life payout, should have attained the bare min cohort FRS. One parent 60, not met BRS.

1) is it more logical to top up younger parent haven't met BRS?
2) What's the effect of topping up an account that already receiving monthly payout? The money top up into RA, and it auto get drawn into CPF Life?

 

[dork32]

did i say anything about paying back my loan? I am just saying that i am not paying back to oa.

bank loan 2.9%, tbills 3.05%, common sense

If you pay down a mortgage faster than required you're really betting that your best alternative investment options are unlikely to beat the average cost of the loan over its remaining term and that you can tolerate a smaller buffer if there's a household emergency such as a bout of unemployment, large medical bills insurance doesn't cover, or other financial calamity. If you have HDB Home Protection Scheme or other MRTA coverage you're also betting that you won't die (or otherwise fall into "TPD" status) within the loan term.

At some point I'll outline in a separate post the math behind why I think the odds are typically well stacked against you if you pay down a 2.6% HDB loan faster than required. Then extend that outline to bank loans.

 

[BBCWatcher]

1) is it more logical to top up younger parent haven't met BRS?

Yes. Matching funds, tax relief, and/or bonus interest may be available. And of course that parent has his/her own individual longevity risks.

2) What's the effect of topping up an account that already receiving monthly payout? The money top up into RA, and it auto get drawn into CPF Life?

Yes. Adding funds to a CPF Retirement Account for an individual already receiving CPF LIFE payouts will boost the monthly payout amount for life. It will also boost the residual nominees receive if the CPF member passes on within the residual payout period.

 

[BBCWatcher]

did i say anything about paying back my loan?

I wasn't responding directly to your situation but rather amplifying the point you're making.

bank loan 2.9%, tbills 3.05%, common sense

Evidently not common enough. But the easier comparison is a 2.6% HDB loan when ~3.0% T-bills now exist. That means you can borrow from the government at X% and lend back to the very same government at ~X+0.4%. What a great deal, and yet....

 

[8zaoyu]

Check with shifus here, one parent 65+ starting to get cpf life payout, should have attained the bare min cohort FRS. One parent 60, not met BRS.

1) is it more logical to top up younger parent haven't met BRS?
2) What's the effect of topping up an account that already receiving monthly payout? The money top up into RA, and it auto get drawn into CPF Life?

From my own low economic status relatives, the younger still fit parent has to continue working because the older parent over 65 draws down only around $800+ monthly under old Retirement Sum Scheme.
If the younger parent reached 65 yo and did not earn much in her lifetime CPF account, she gets the post 65 yo Silver Bonus supplement from govt even if working as a cleaner.

 

[8zaoyu]

did i say anything about paying back my loan? I am just saying that i am not paying back to oa.

bank loan 2.9%, tbills 3.05%, common sense

Some folks have hugh mortgage - bigger resales or pte, pay with both CPF OA plus bank loans ( younger than 55 yo can withstand tis) When over 55, do you all notice yr CPFs accumulation drops?) Only those "jia liao bee" politician and agents/landlords dream of others working till death to pay them!

 

[JuniorLion]

Some folks have hugh mortgage - bigger resales or pte, pay with both CPF OA plus bank loans ( younger than 55 yo can withstand tis) When over 55, do you all notice yr CPFs accumulation drops?) Only those "jia liao bee" politician and agents/landlords dream of others working till death to pay them!

The contribution rates are gradually adjusted upwards for 56-60.

 

[8zaoyu]

The contribution rates are gradually adjusted upwards for 56-60.

Wah, do you know - down 5% from 37% total savings contributions first. But "take your whole chx coop" back if you owe your loans and premiums still payable?