After age 55, if RA has FRS. Contribution goes to OA and MA. If MA reach BHS, all to OA.
RA is form of FRS for your retirement.
My earlier question include BRS in RA working cpf follow like FRS go into MA OA ? In other forums it seems for BRS in RA cpf go into RA to make it fulfill FRS first.
Once your RA is “adequately“ funded (as the CPF Board sees it) the portion of compulsory contributions earmarked for RA instead flows into OA. “Adequately” means at least the Full Retirement Sum, or at least the Basic Retirement Sum with property pledge/charge.
I don’t think very many people would stop working, and lose 100% of their income from work, because a fraction of that income is paid back to themselves, tax free and with high interest, in some combination of future lump sum withdrawals, higher pension payouts for life, and/or higher residuals to nominees. They also lose their employer’s compulsory contributions. But people are free to make many strange decisions — including dropping their income to zero because they don’t like an effective income tax rate of 3.47% (as another example).
Can I know where you get above info? From cpf website? I search cannot find. If true it will be good becuz BRS you only lock half and then new cpf monies go into OA can withdraw
It’s not combined on one page that I can find, but there are lots of references to the importance of the Full Retirement Sum. And then there’s this:
https://www.cpf.gov.sg/service/sfc/servlet.shepherd/document/download/069IW00000DZMxZYAX
For members age 55+ but below 60 who have not yet met the Full Retirement Sum (with money, or with a combination of money and up to half in qualifying property), 35.3% of compulsory contributions (and VC3As) flows into their OAs.
Upon the closure of Special Account, the contributions for members aged 55 and above will be fully allocated to the Retirement Account (RA), up to the Full Retirement Sum (FRS). If members have set aside the FRS in their RA, these contributions will be channelled to their Ordinary Account.
Congrats on finally breaking through the facade! It’s hilarious how fast the long-winded lectures vanish the second real logic enters the chat. Sending him back to his own thread to preach to the choir is the ultimate win.
The CPF Board will indeed notify you of your options a couple months before your 55th birthday. This includes dropping your RA as low as the BRS if you wish (with a property pledge or charge) — yes, that is one of the options available. That BRS amount is paid to you in cash, on your 55th birthday if you wish. All spelled out in that notification.
Where did you get the info? From any cpf website?
Can't wait for the interest!
If you are still looking for the correct answers to all your questions, give me some time to writeup to explain using "IT Language" - you are IT trained, so this should help you get all the answers to the questions you raised here. "IT Language" to explain how the CPFB computer system handles it.
Step 3 answer my one question. The other question is how to do BRS your post say online can do but in my other post with cpf url is need make appointment and cpf officer do for us. Anyway when I decide to do BRS I will then share
Correct, it is always better to meet with CPFB staff to understand everything and process your applications to expedite the receipt of monies. They can verify you meet all the conditions on the spot.
That I got my answer from cpf website and question why? A kind reader in here say cpf investment is paper profits so cannot use it to form RA as it can lose monies. This I accepted the reason why cpf disqualified those monies unless I sold and lock the profits back to my SA OA prior to before RA is created.
