CPF Accounts Value Thread 2020

[highsulphur]

To me i classify myself as high (disclaimer not those 20-22% HNW individuals)

You still can top up your parents if they are not working. I can't top up my own SA so I top up my mums RA. Consider that part of my allowance to her.

 

[pcmdan]

You still can top up your parents if they are not working. I can't top up my own SA so I top up my mums RA. Consider that part of my allowance to her.

haha my mum above 55, but CPF no $$. if i contribute to her this way, she is not able to take it out till 8 years later.

I can imagine a chopper infront of me.

thanks for the tip though

 

[highsulphur]

haha my mum above 55, but CPF no $$. if i contribute to her this way, she is not able to take it out till 8 years later.

I can imagine a chopper infront of me.

thanks for the tip though

Mine is less complicated as my mum is on RSS rather than cpf life so whatever I contribute will go directly to her. Cpf life will need some calculations but I believe should still be worth it

 

[oceanicmanta]

haha my mum above 55, but CPF no $$.

if less than 60k, not required to get CPF Life ... which is not a bad thing, I thought

 

[highsulphur]

If one contribute to a parent after 55 to his RA, would the amount go to CPF life? Or just stay in RA?

 

[highsulphur]

CPF is complicated, so the answer will be complicated, u need to provide more info, eg when she turn 55, etc. But u mentioned she is on RSS? How old is she now?

Not for my case. My parents are on RSS so it's straight forward. What I give they get 100%

 

[terence2112]

If one contribute to a parent after 55 to his RA, would the amount go to CPF life? Or just stay in RA?

How old is your parent? If In cpf life, can let them know the TOP up is to bump up the cpf life payout. They will process for you

 

[hwmook]

Finaally transfer OA to sa to reach 181k yesterday. Working almost 20 years still cannot reach sa ceiling, need to top up. Wtf

I calculated need 18 years of working for me to reach FRS so you are not alone.

 

[decibel.]

Depends. At the early stage of one's career, its difficult to have the liquidity to pay for the mortgage using 100% cash but it might be possible later with salary increase. Some even pay back the cpf used for housing after they finished their loan at a later stage of their career

Yup it depends. It's up to you. Like I already have FRS in SA for retirement along with funds invested monthly for next decades. The spare cash flow plus remaining OA can be used for housing. Many doesn't know how to maximize their CPF that's why complain FRS is too high. Why should I wipe my OA in the first place if I can use cash when I can. I prefer saving OA for events when I need to cash desperately, then OA can come into play for that period to repay the loan. When I sell the house, I get back more cash too and I can use that to reinvest.

Sent from HUAWEI VOG-L29 using GAGT

 

[highsulphur]

It's up to you. Like I already have FRS in SA for retirement along with funds invested monthly for next decades. The spare cash flow plus remaining OA can be used for housing. Many doesn't know how to maximize their CPF that's why complain FRS is too high. Why should I wipe my OA in the first place if I can use cash when I can. I prefer saving OA for events when I need to cash desperately, then OA can come into play for that period to repay the loan. When I sell the house, I get back more cash too and I can use that to reinvest.

Sent from HUAWEI VOG-L29 using GAGT

No need to preach to me. I'm a CPF believer

Posted from PCWX using VOG-L29

 

[Kaypohji]

It’s pretty normal due to the low % of sa allocation from cpf contribution especially during younger age group.

I think in order to hit, need to top up more or less ?

I calculated need 18 years of working for me to reach FRS so you are not alone.

 

[pcmdan]

It’s pretty normal due to the low % of sa allocation from cpf contribution especially during younger age group.

I think in order to hit, need to top up more or less ?

Unless got super fat bonus or top up. Assuming 7% contribution per month with 6k salary p.a.working for 20 years with no OA to SA transfer either

6000 x 7% x 12 months x 20 years = $100,800

Assuming 8% is $115,200

Even if I assume 11.5% is $165,600

Unless prolong working to 30 years.. still got hope haha

 

[Tiger9119]

Unless got super fat bonus or top up. Assuming 7% contribution per month with 6k salary p.a.working for 20 years with no OA to SA transfer either

6000 x 7% x 12 months x 20 years = $100,800

Assuming 8% is $115,200

Even if I assume 11.5% is $165,600

Unless prolong working to 30 years.. still got hope haha

Don't forget the 4% interest(excluding additional 1%).
In 20 years time, the $100,800 should be about $150,000.

 

[Kaypohji]

FRS will be adjusted almost yearly I guess

So even factor in the compounded interest, I think for one to hit FRS in his time also not easy just purely by working

Don't forget the 4% interest(excluding additional 1%).
In 20 years time, the $100,800 should be about $150,000.

 

[BBCWatcher]

Unless got super fat bonus or top up. Assuming 7% contribution per month with 6k salary p.a.working for 20 years with no OA to SA transfer either
6000 x 7% x 12 months x 20 years = $100,800
Assuming 8% is $115,200
Even if I assume 11.5% is $165,600
Unless prolong working to 30 years.. still got hope haha

Don't forget the 4% interest(excluding additional 1%).

Bonus interest mostly goes into SA (although some can end up in MA, especially earlier in a working career). OA can contribute up to $20,000 toward hitting the $60,000 total combined balances figure to earn maximum bonus interest, but bonus interest computed on OA is credited to SA (or to RA from age 55).

In 20 years time, the $100,800 should be about $150,000.

I think we're also forgetting the fairly typical/conventional 13th bonus month, and we're also forgetting possible "spillover" from MA into SA once MA reaches the Basic Healthcare Sum. The allocation rate into MediSave is higher except for age 50 to 55, and MA earns 4% interest, so as long as MA withdrawals aren't too significant there's a realistic prospect of some "spillover."

 

[hwmook]

Unless got super fat bonus or top up. Assuming 7% contribution per month with 6k salary p.a.working for 20 years with no OA to SA transfer either

6000 x 7% x 12 months x 20 years = $100,800

Assuming 8% is $115,200

Even if I assume 11.5% is $165,600

Unless prolong working to 30 years.. still got hope haha

Its the spillover from medisave that will make you meet FRS without topping up.

 

[pcmdan]

Bonus interest mostly goes into SA (although some can end up in MA, especially earlier in a working career). OA can contribute up to $20,000 toward hitting the $60,000 total combined balances figure to earn maximum bonus interest, but bonus interest computed on OA is credited to SA (or to RA from age 55).


I think we're also forgetting the fairly typical/conventional 13th bonus month, and we're also forgetting possible "spillover" from MA into SA once MA reaches the Basic Healthcare Sum. The allocation rate into MediSave is higher except for age 50 to 55, and MA earns 4% interest, so as long as MA withdrawals aren't too significant there's a realistic prospect of some "spillover."

So nice ur job come with 13th month. My company and companies I worked for, doesnt have 13th month

But still for someone earning 6k with 0 in cpf, how long does he need to work in order for FRS to be met entirely by SA?

 

[pcmdan]

Its the spillover from medisave that will make you meet FRS without topping up.

Ah...u are right..I totally forgotten about MA spill over.

 

[Tiger9119]

So nice ur job come with 13th month. My company and companies I worked for, doesnt have 13th month

But still for someone earning 6k with 0 in cpf, how long does he need to work in order for FRS to be met entirely by SA?

If you are 25yrs old this year and drawing $6000 per month and salary remain at $6000 for the next 30 yrs, the amount in SA should be about $286,000 at the age of 55 yrs old. This amount does not include spillover from MA and the additional 1% interest.

SA allocation rates:
Below 35: 6%
35-45: 7%
45-50: 8%
50-55: 11.5%

 

[pcmdan]

If you are 25yrs old this year and drawing $6000 per month and salary remain at $6000 for the next 30 yrs, the amount in SA should be about $286,000 at the age of 55 yrs old. This amount does not include spillover from MA and the additional 1% interest.

SA allocation rates:
Below 35: 6%
35-45: 7%
45-50: 8%
50-55: 11.5%

Yeah u are right. Interest is a powerful thing
Just run thru financial calculator. Assuming u earn 6k per month at 25 and ignoring all spill over from MA and 1% on first 60k

At age 35, $53,009
At age 45, $140,873
At age 50, $203,830
At age 55, $294,622

Thanks. I was shocked with the figures u mentioned that I went ahead to compute. U are right..need to work more than 20yrs to reach frs