CPF Accounts Value thread

[tangent314]

Bro, i use this scenario; SA stays at 88k for easy comparison on 55yo onward.

On 55yo, should i do FRS or ERS ? Below be FRS.

This has been asked many times before and always ends up triggering a heated debate...

I'm in the ERS (+escalating) camp FWIW

 

[alt2015]

Can draw out 20% of RA at age 65?

And initial RA can be ers ?

 

[SKenny]

Can draw out 20% of RA at age 65?

Yes you can.

For members who turned 55 from 2013 (i.e. born in 1958 or after), you also have the option to withdraw a lump sum of up to 20% of the savings in your Retirement Account at your payout eligibility age (includes the first $5,000 you can withdraw at 55).
https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/withdrawals-of-cpf-savings-from-55

 

[zuppeur]

Yes to your first question.

Not sure about your second question. The reason why you want to pledge your property is to withdraw upto 50% of FRS. If you intend to park the fund in RA from the start, then why pledge your property?

Please note that you can choose to pledge your property at a later date beyond 55 until when your CPFLife starts.

Sorry for the newbie question.it sure does it make sense.

1.@55 I choose FRS.

2.Top up using cash to ERS

Since I choose FRS. How much will be transfer to cpf life and When will happen to the top up fund? Remain in RA acct

 

[SKenny]

Sorry for the newbie question.

1.@55 I choose FRS.

2.Top up using cash to ERS

Since I choose FRS. How much will be transfer to cpf life and When will happen to the top up fund? Remain in RA acct

When you top up your RA to ERS, the top-up amount is "stuck" there. It will then form part of your CPFLife payout.

You cannot withdraw the top-up amount in your RA (unless under some extreme conditions).

You can withdraw part of your FRS (ie the amount that you placed in RA as per your above example), as part of the pledging of property. The 20% withdrawal option is available too.

 

[cal3135]

Thanks 96yo

you calculation is good except for this step
131k with 610 diff per mth, will able to drawdown for 17yrs. Then I be 82yo....

the correct statement should be
131k with 610 diff per mth, will able to drawdown for 31yrs. Then I be 96yo....

Posted with xsmax HardwareZone Forums app

 

[SKenny]

And initial RA can be ers ?

Technically when you turn 55, the RA is formed with FRS as the limit.

You can then increased the RA to prevailing ERS via top up (cash or CPF).

Please note that top up monies is treated differently from the initial FRS amount as there are more restrictions on the top-tup. For example, top up amount cannot be used as part of the calculation of the amount that can be withdrawn in a property pledge.

 

[BBCWatcher]

However the ERS limit is "cast in stone" at the point when you turn 65.

I'm not aware of any BRS/FRS/ERS cap starting from age 65. Are you thinking of the Basic Healthcare Sum for MediSave, which is fixed on your 65th birthday?

 

[alt2015]

Technically when you turn 55, the RA is formed with FRS as the limit.

You can then increased the RA to prevailing ERS via top up (cash or CPF).

Please note that top up monies is treated differently from the initial FRS amount as there are more restrictions on the top-tup. For example, top up amount cannot be used as part of the calculation of the amount that can be withdrawn in a property pledge.

Thks. I will be able to withdraw only up to 20% of Frs (inclusive of interest?
But not 20% ers .

 

[SKenny]

Thks. I will be able to withdraw only up to 20% of Frs (inclusive of interest?
But not 20% ers .

For the 20% withdrawal, interest earned is included but top up (and other grants if any) are excluded.

For calculation of BRS, interest earned (and top-ups, grants etc) are excluded.

 

[SKenny]

I'm not aware of any BRS/FRS/ERS cap starting from age 65. Are you thinking of the Basic Healthcare Sum for MediSave, which is fixed on your 65th birthday?

You are correct, I got it mixed up with BHS! You can top up RA beyond 65 years old.

Any top-up after you start your CPF Life (say at 65 years) old, get paid out as Additional Monthly Payments which are prorated till you are 90 years old.

You can also apply for additional CPFLife with these top-ups (until 80 years old).

 

[lifeafter41]

Why the wife need to be convinced? A fully paid HDB, all under her own name.

The condo is in the “decoupled” husband name.....lol

 

[JuniorLion]

It would be best to use cash to top up your newly-formed RA from FRS to ERS at 55 immediately, even if you have sufficient SA to transfer to RA.

 

[iMac]

It would be best to use cash to top up your newly-formed RA from FRS to ERS at 55 immediately, even if you have sufficient SA to transfer to RA.

I do not quite understand this....

Most ppl hardly can't wait till 55 to take out their $ from CPF, why you put in $ into CPF instead ?

 

[JuniorLion]

I do not quite understand this....

Most ppl hardly can't wait till 55 to take out their $ from CPF, why you put in $ into CPF instead ?

Guaranteed 4%. Life annuity. SA functions as 4% savings account after 55. What's there not to like?

 

[ocs_woodlands]

It would be best to use cash to top up your newly-formed RA from FRS to ERS at 55 immediately, even if you have sufficient SA to transfer to RA.

good tip. more grub for the 4% machine...

 

[BBCWatcher]

It would be best to use cash to top up your newly-formed RA from FRS to ERS at 55 immediately, even if you have sufficient SA to transfer to RA.

good tip. more grub for the 4% machine...

Yes, agreed. A 4% interest earning "on demand" AAA-rated government guaranteed account (your Special Account at age 55+) is a rather expensive source of funds for top-ups.

 

[Nofear40]

It would be best to use cash to top up your newly-formed RA from FRS to ERS at 55 immediately, even if you have sufficient SA to transfer to RA.

They will not take from SA followed by OA once you opt for ERS?
Can I choose to transfer from OA to ERS and leave my SA balance intact ?

 

[kehyi4]

I do not quite understand this....

Most ppl hardly can't wait till 55 to take out their $ from CPF, why you put in $ into CPF instead ?

maybe because the people who frequent this forum are not your average typical Singaporean

 

[JuniorLion]

They will not take from SA followed by OA once you opt for ERS?
Can I choose to transfer from OA to ERS and leave my SA balance intact ?

FRS is formed from SA first. If you have insufficient SA, they will use OA to form RA. If you want to leave your SA balance intact, you gotta do the SA shielding trick.