CPF Account Value Thread 2025

[DevilPlate]

You have been saying the CPF 4% may not be sustainable ... how aging population will affect the rate?

SA started from Jul 1977 at 5.07% and rose to 5.79% and then settled at 4% (OA at 2.5%) ever since the third quarter of 1999 to date. I would think it can carry on at those rates, unless interest rate goes negative and GIC failed over a sustained period of time.

Because we will have lesser younger cohort to contribute to CPF system and more and more boomers start to withdraw from the system. As explained by that guy YT video which u claim u watch and learnt nth.

CPFL payout can be reduced which u agreed previously.

We can always agree to disagree.

Anyway u say that OCBC annuity cui cmi but i think there are some scenerios where it can be “better” since beneficiaries can get slightly more than the premiums paid upon death.

Need experts to run excel table….or maybe ChatGpt can help whahaha

 

[henrylbh]

I bring your comments here for cpf discussion

My fren was happy to make a full VHR a few years before reaching age 55. Not only that she dumped 100k into the son's CPF accounts. And now she needs those money for the spouse's and MIL medical expenses.

 

[~sabaisabai~]

My fren was happy to make a full VHR a few years before reaching age 55. Not only that she dumped 100k into the son's CPF accounts. And now she needs those money for the spouse's and MIL medical expenses.

Oh i am not the one asking.
Please reply to those who asking about the VHR

@JetStorm
@yuppieboy
@banyan8

 

[henrylbh]

Because we will have lesser younger cohort to contribute to CPF system and more and more boomers start to withdraw from the system. As explained by that guy YT video which u claim u watch and learnt nth.

CPFL payout can be reduced which u agreed previously.

We can always agree to disagree.

Anyway u say that OCBC annuity cui cmi but i think there are some scenerios where it can be “better” since beneficiaries can get slightly more than the premiums paid upon death.

Need experts to run excel table….or maybe ChatGpt can help whahaha

I see that the vdo didn't help you to understand and you mixed sustainable payouts with the viablility of 4% interest rate. Each cohort draws from its own pool so earlier cohorts do not depend on later cohort contributions unless it a ponzi scheme

The OCBC annuity scheme can only appeal to those who have little knowledge of finance and calculations.

Learned nothing is not as bad as learned the wrong thing

 

[henrylbh]

Oh i am not the one asking.
Please reply to those who asking about the VHR

@JetStorm
@yuppieboy
@banyan8

I know you are not asking but you want to hear what others say and I am just sharing what I came to know of other's experience.

 

[DevilPlate]

I see that the vdo didn't help you to understand and you mixed sustainable payouts with the viablility 4% interest rate. Each cohort draws from its own pool so earlier cohorts do not depend on later cohort contributions unless it a ponzi scheme

The OCBC annuity scheme can only appeal to those who have little knowledge of finance and calculations.

It is a legit ponzi scheme!

Thats why u given No choice to opt for RSS else CPFL will not be sustainable when many opt out and go for RSS

*I never run the figures only agar agar think that OCBC annuities may benefit those people who js nice die at a certain age whereby beneficiaries (under CPFL) get nth. Ofc also need to make assumptions about the returns since their payout is non guaranteed up to 3.x%

 

[henrylbh]

It is a legit ponzi scheme!

Thats why u given No choice to opt for RSS else CPFL will not be sustainable when many opt out and go for RSS

*I never run the figures only agar agar think that OCBC annuities may benefit those people who js nice die at a certain age whereby beneficiaries (under CPFL) get nth. Ofc also need to make assumptions about the returns since their payout is non guaranteed up to 3.x%

How is it a ponzi scheme? Don't anyhow make comments when you have little knowledge on the matter. And again now you are mixing RSS and CPFL on sustainability. My goodness you need to learn not to be confused.

 

[royalmix]

I see that the vdo didn't help you to understand and you mixed sustainable payouts with the viablility of 4% interest rate.

What video, I never watch and not interested!

Each cohort draws from its own pool so earlier cohorts do not depend on later cohort contributions unless it a ponzi scheme

You mean the video spread this fake news and you believe? Show me the CPF rule from CPFB website!

Do you know BBC and someone else also posted this a few mths ago, and when I said fake news, admin believe them and I kena!

 

[BBCWatcher]

Because we will have lesser younger cohort to contribute to CPF system and more and more boomers start to withdraw from the system.

CPF is fundamentally a defined contribution system. Individuals (and their employers) deposit funds, and then they individually withdraw their own contributions (plus interest). I don't see how there are any demographic issues in a system like that. If there are fewer contributors, there are fewer CPF members, that's all. That'd be like a bank starting with 3 million smaller depositors then slowly, over a long period of time, ending up with 2.5 million larger depositors. (Singaporeans are getting wealthier, on average — also reflected to some extent in their CPF contributions.) If anything, fewer larger depositors would mean the CPF Board's customer service-related expenses fall.

GIC invests the CPF contribution base (via the SSGSes). I don't see how Singapore's aging population will affect GIC's long-term investment performance. How's that connected? I'm quite sure GIC is not 80% invested in pediatric pharmaceutical companies.

It is a legit ponzi scheme!
Thats why u given No choice to opt for RSS else CPFL will not be sustainable when many opt out and go for RSS

Longevity insurance is literally millenia old. (The Roman Empire introduced military pensions in 13 BCE. Even private sector pensions are quite old. American Express started their pension program in 1875.) Longevity insurance is simply the opposite bet to life insurance. Do you think life insurance is unsustainable too? How?

If you want to worry about a form of insurance with potential demographic problems, longevity insurance ain't it. I'd focus your worries on medical insurance, actually.

 

[JetStorm]

My fren was happy to make a full VHR a few years before reaching age 55. Not only that she dumped 100k into the son's CPF accounts. And now she needs those money for the spouse's and MIL medical expenses.

I assume your friend already hit FRS then do VHR?

For me I prefer funds to be liquid. If I do any VHR I will only do after 55 and after I hit FRS.

 

[royalmix]

I assume your friend already hit FRS then do VHR?

For me I prefer funds to be liquid. If I do any VHR I will only do after 55 and after I hit FRS.

So you are not there yet? How many more years?

 

[JetStorm]

So you are not there yet? How many more years?

FRS yes. 55 no. about 1 decade more! Haha.

 

[highsulphur]

What happens when one turns 55 years old if his SA has more than ERS just before 55?

 

[reddevil0728]

What happens when one turns 55 years old if his SA has more than ERS just before 55?

doesn't matter just before or not. in the end will just fund ra till frs.

the rest go oa.

What happens to my CPF savings when I turn 55?
When you turn 55, the following will happen to your CPF savings:

• Retirement Account (RA): Savings from your Special Account (SA) and Ordinary Account (OA) will be transferred to your newly created RA, up to your Full Retirement Sum (FRS). Your SA savings will be transferred first, followed by your OA savings if your SA savings is insufficient to set aside your FRS.
• SA closure: After the transfer, your SA will be closed, and any remaining SA savings will be transferred to your OA.

Find out more about what happens when you reach age 55.


https://www.cpf.gov.sg/service/article/what-happens-to-my-cpf-savings-when-i-turn-55

 

[compro_1975]

What happens when one turns 55 years old if his SA has more than ERS just before 55?

hehehe u must have alot.... i also wonder too... like FRS straight to RA, can topup to ERS, then more than ERS goes to where...

 

[highsulphur]

hehehe u must have alot.... i also wonder too... like FRS straight to RA, can topup to ERS, then more than ERS goes to where...

More than ERS probably has to stay in OA

 

[BBCWatcher]

What happens when one turns 55 years old if his SA has more than ERS just before 55?

By default, on one’s 55th birthday the CPF Board sweeps the (then current) Full Retirement Sum from that well-funded Special Account into a new Retirement Account. The remainder is swept into OA, and the SA is closed.

That age 55+ member has the option to increase his/her RA by any amount — by $2, $200, $2,000, $20,000, or $200,000, as examples — subject to the (current) Enhanced Retirement Sum (ERS) limit. That option is available as long as the member is alive. Every time the ERS is raised every living age 55+ member has room to add some funds to RA even if he/she maxed out his/her RA in the past.

By the way, it’s mathematically difficult for a Special Account to reach the Enhanced Retirement Sum. To get there it requires zooming up to the Full Retirement Sum quickly, at the start of a working career (or even before), then decades of decent or better compensation (with compulsory contributions). Even then it’s difficult.