CPF Accounts Value thread

[JuniorLion]

If I am not wrong, those enrolled under CPF Life old plans, CPF will write to them telling them payout will start at 65, if they prefer to defer to reply with return envelope - one case I saw last year.

If he is worried, he can call CPF hotline to inquire or use singpass to send feedback msg.

Thanks maple96.

So my uncle needs to wait for the letter from CPF Board?

 

[JuniorLion]

This is incorrect.

He can opt-in to start the payout at 65, 6 months before he turns 65 (assuming that he is born 1954 or later).

If I am not wrong, those enrolled under CPF Life old plans, CPF will write to them telling them payout will start at 65, if they prefer to defer to reply with return envelope - one case I saw last year.

If he is worried, he can call CPF hotline to inquire or use singpass to send feedback msg.

I found the answer right here:
https://www.martinlee.sg/uploads/CPFLIFE_GuideB.pdf

For the older CPF Plans, there's this thing known as Draw down age (DDA), which is now renamed Payout Eligible Age (PEA).

From the booklet, it says
Q: What happens 1-2 months before my DDA?

A: From the time you join CPF LIFE till you reach your DDA, your Retirement Account (RA) will be credited with the extra 1% interest earned on the first $60,000 of your combined CPF balances11 (including the savings deducted as annuity
premium when you join CPF LIFE). Additional monies may also be credited to your RA arising from top-ups or refunds due to the sale of your property. About 1-2 months before your DDA, CPF Board will deduct another annuity premium from these additional monies for your chosen LIFE Plan. This will be done automatically, and you will then be informed of the exact monthly payout that you will receive
from your DDA.

 

[JuniorLion]

So yup, I think this is what it is. Will confirm with CPF officers this Thursday.

 

[EarthlyTreasure]

For cash top up up to $7k per calendar year to someone SA (assuming receipient SA balance is < FRS and receipient’s annual income is <$4k), this will enable donor to claim tax relief, subject to $80k annual relief cap.

Can the cash top up to your children or cousin SA (to help them build up their retirement sum) qualify for tax relief?

 

[BBCWatcher]

For cash top up up to $7k per calendar year to someone SA (assuming receipient SA balance is < FRS and receipient’s annual income is <$4k), this will enable donor to claim tax relief, subject to $80k annual relief cap.

Can the cash top up to your children or cousin SA (to help them build up their retirement sum) qualify for tax relief?

No, not directly.

When you top up somebody else’s Special or Retirement Account, and if you want to qualify for tax relief, that other person must be a parent, parent-in-law, grandparent, grandparent-in-law, spouse, or sibling. Only spouses and siblings are excluded from tax relief if the recipient has a total global income of $4,000 or more, and then only if the recipient is non-handicapped.

You can split the $7,000 of tax relief across qualified recipients. For example, you can top up your grandfather’s Retirement Account by $3,500 and your mother-in-law’s Special Account by $3,500. If both of those accounts are below the Full Retirement Sum, then both contributions qualify for tax relief and fit within the maximum $7,000 per year.

However, there are possible indirect ways that somebody else can qualify for tax relief. For example, if your child is married, and if his/her spouse owes income tax, and if your child is either handicapped or has limited global income (below the $4,000 cutoff), then you can hand your child’s spouse some cash (a gift) then he/she can make the top up and qualify for tax relief. How you choose to split the tax savings is up to you and your family decisions.

 

[Sglastexile]

Hi,
I planning to Change my asset allocation to
50% stock & 50% CPF/SSB when I reach 55.

One question, after setting aside for the Full Retirement Sum in my RA account.

Can I withdrew any amount leftover in my SA account thereafter?

Example: when stocks goes up 60% S: 40% CPF
I will want to sell off stock and pump it into SA account. For 50:50

When 40% stocks: 60% CPF, can I withdraw anytime the money in SA account to pump up my stock to 50%?

Main reason is to earn the 4% interest from SA, if not then I will buy SSB instead but at lower interests.

 

[BBCWatcher]

One question, after setting aside for the Full Retirement Sum in my RA account.
Can I withdrew any amount leftover in my SA account thereafter?

Yes, partially or fully. You’re under no obligation to do that, but you can.

Example: when stocks goes up 60% S: 40% CPF
I will want to sell off stock and pump it into SA account. For 50:50

No, you cannot do that. Once you withdraw Special Account dollars, they’re out. You have these options instead:

1. You can deposit funds into your Retirement Account, up to the Enhanced Retirement Sum. Those funds plus interest will stream out as CPF LIFE monthly payouts (when you start payouts, which can be as late as age 70).

2. You can deposit funds into your own MediSave Account, but your deposit must fit within two limits: the Basic Healthcare Sum and the CPF Annual Limit. This top up qualifies for tax relief.

3. You can deposit funds into “all three” of your accounts (OA/SA/MA), but your deposit must fit within the CPF Annual Limit.

4. You can deposit funds into anybody else’s CPF account(s), such as a spouse’s or partner’s, according to his/her applicable rules and limits.

When 40% stocks: 60% CPF, can I withdraw anytime the money in SA account to pump up my stock to 50%?

Yes, but this is one occasion when portfolio rebalancing is not necessarily the highest priority. Your Special Account dollars are earning 4% interest, and that’s quite attractive.

Portfolio rebalancing is nice to do, but it’s fundamentally motivated by a desire to respect your personal risk limits. However, CPF dollars are extremely safe — safer even than Singapore Government Securities (such as Singapore Savings Bonds) because of the unique asset protection characteristics that CPF offers. And SA is weirdly relatively high yielding (4% interest). So you really don’t have to worry about having “too much” in your SA, at least not under ordinary circumstances. So if your stock allocation dips below a certain percentage, I wouldn’t be rushing to use SA dollars to fix that. Other assets (such as SSBs) would come first since they’re lower yielding. If that’s still not enough, don’t worry about it. It’s not any sort of emergency if your stocks represent 45% of your net worth, for example.

By the way, once you hit your drawdown/retirement age — traditionally age 65 — then the recommended “rule of thumb” allocation is 30% stocks/stock-likes and 70% bonds/bond-likes. High net worth individuals might be more aggressive than that. So that’s another reason why, as you age, having less than 50% allocated to stocks isn’t likely to be a problem.

 

[Sglastexile]

Thanks for the detailed reply.

Keeping it Simple. To cater for Old age’s mental capability.

Age 55 : Portfolio allocation Stock 50% : CPF/Bond 50%.
Adjust CPF to Enhanced Retirement Sum.

Age 65 (drawdown age)
CPF/bond allocation > Stock
Reduce Stock for misc expenses.
Income from CPF Life/ Bond.

Now
Stay the Course with discipline

 

[Lowjmn]

Seems like quite a stupid question to ask but I was wondering - if I invest my CPF with DBS does that count towards my assets with DBS I.e. will that appear in DBS digibank and be counted towards eligibility for DBS treasures?

 

[FuNKySoULyBrO]

Seems like quite a stupid question to ask but I was wondering - if I invest my CPF with DBS does that count towards my assets with DBS I.e. will that appear in DBS digibank and be counted towards eligibility for DBS treasures?

Nope, equities bought from CPF or even SRS doesn't count towards the AUM for DBST.

 

[buaytuckchek]

Nope, equities bought from CPF or even SRS doesn't count towards the AUM for DBST.

Thanks for sharing.

But I think DBST doesn't have much attractiveness compared to DBS Vickers. Also, DBST has requirements to meet annually to renew.

 

[chrisloh65]

DBS Vickers will charge you quarterly fees per counter under custodian (and will never be waived).
DBST can be waived.

Thanks for sharing.

But I think DBST doesn't have much attractiveness compared to DBS Vickers. Also, DBST has requirements to meet annually to renew.

 

[Lowjmn]

Nope, equities bought from CPF or even SRS doesn't count towards the AUM for DBST.

Thank you!

How about SSB does that count towards AUM for DBS treasures?

And what is the better REIT to get now?

 

[twinbaby]

Hi there,

My mother, age 60 has 70k in RA account.
And around 50k in cash.
Currently have some women have issues.

1) Make sense to buy health/surgical insurance plan?
2) Can top up more of RA?
3) Can put the 50k of cash in 1.3% POSB fixed deposit?

No dependent.

 

[BBCWatcher]

1) Make sense to buy health/surgical insurance plan?

A simple one, and assuming she doesn’t have preexisting conditions. I currently like Aviva’s MyShield Plan 3 with optional MyHealthPlus rider in this situation. I also think CareShield Life has merit, and it’ll be available sometime in 2021 if she wishes to enroll.

2) Can top up more of RA?

Of course. That’d boost her future CPF LIFE retirement income. You and any siblings may be eligible for tax relief, and matching funds may be available from 2021.

3) Can put the 50k of cash in 1.3% POSB fixed deposit?

She could, but I think she’d be better off putting the first $10,000 in a 2.0% interest Singlife account (which comes with Visa debit card). There are also possible liquid CPF-related deposits earning at least 2.5% interest, at least in the future if/when she reaches at least the Basic Retirement Sum with property pledge/charge.

 

[havetheveryfun]

hi guys, this is my cpf statement, but i''ve been jobless for almost half a year. unlikely to get a job soon as i dont think i wanna go back to corporate world. Thinking of doing, freelance work here and there help friends plus maybe delivery boy a bit.

i'm turning 44 in couple of months. is my cpf looking ok ....any idea how to grow and prepare my cpf until i hit ret age? thanks

OA : 123k + (125k in house)
SA : 145k
MA : 59K

is ur house fully paid.. if fully paid already maybe consider transfer a portion from Oa to SA

theres not much else u can do unless u willing to top up also

 

[aduki2000]

Thanks, house not fully paid yet, left around 200k.

 

[dork32]

Thanks, house not fully paid yet, left around 200k.

wow 200k of housing loan, 120k in the cpf oa, age 44 and you dont want to do a full time job and do free lance?

you have cash 1 mil now?

 

[dork32]

hi guys, this is my cpf statement, but i''ve been jobless for almost half a year. unlikely to get a job soon as i dont think i wanna go back to corporate world. Thinking of doing, freelance work here and there help friends plus maybe delivery boy a bit.

i'm turning 44 in couple of months. is my cpf looking ok ....any idea how to grow and prepare my cpf until i hit ret age? thanks

OA : 123k + (125k in house)
SA : 145k
MA : 59K

ok or not is very subjective. the best way to grow your cpf is to find a full time job

 

[aduki2000]

wow 200k of housing loan, 120k in the cpf oa, age 44 and you dont want to do a full time job and do free lance?

you have cash 1 mil now?

tried looking for job for half year, cant get.almost given up.hope