CPF after 55

[yoongf]

I intend to keep the principal sum of OA and SA in my CPF to earn recurring interest to fund my retirement, particularly from 60 to 65 years old. Between the age of 60 and 65 years old, am I allowed to draw out only the interest rates on both of my OA and SA?

OA interest will stay in OA.
SA interest will stay in SA.
Problem is.. all withdrawals will take from SA first. When SA depletes then take from OA.
MA interest will overflow to SA so might help a bit. But nw.. MA BHS grows at 5% while earning 4%.

 

[reddevil0728]

I intend to keep the principal sum of OA and SA in my CPF to earn recurring interest to fund my retirement, particularly from 60 to 65 years old. Between the age of 60 and 65 years old, am I allowed to draw out only the interest rates on both of my OA and SA?

interest doesn't earn interest?

 

[andyhtc]

OA interest will stay in OA.
SA interest will stay in SA.
Problem is.. all withdrawals will take from SA first. When SA depletes then take from OA.
MA interest will overflow to SA so might help a bit. But nw.. MA BHS grows at 5% while earning 4%.

That is quite restrictive as I intend to keep my principal sum in SA intact and take out the interests earned from both OA and SA, which cannot be done.

The most is I take out the interest earned in SA while the OA snowsball.

Hence, SA shielding does have a benefit for me since I can't take out OA interest without using up my SA.

I will write to CPF to check if interest-only withdrawals on OA can be done.

 

[andyhtc]

interest doesn't earn interest?

60 to 65 will have an income gap if I retire at 60. It is more for planning backup if my cash saving is not sufficient.

 

[reddevil0728]

That is quite restrictive as I intend to keep my principal sum in SA intact and take out the interests earned from both OA and SA, which cannot be done.

The most is I take out the interest earned in SA while the OA snowsball.

Hence, SA shielding does have a benefit for me since I can't take out OA interest without using up my SA.

I will write to CPF to check if interest-only withdrawals on OA can be done.

The sequence is SA then OA.

no appeal will change anything.

 

[reddevil0728]

60 to 65 will have an income gap if I retire at 60. It is more for planning backup if my cash saving is not sufficient.

Ah you are specifically withdrawing interest from each account but nope. Got sequence of withdrawal.

 

[reddevil0728]

Hmm if after 55.. keep topping up MA.. MA overflows to SA.. after 55.. SA no max cap rite?

Becomes like a 4% savings acct?

See this illustration of overflow

 

[polyglob]

That is quite restrictive as I intend to keep my principal sum in SA intact and take out the interests earned from both OA and SA, which cannot be done.

The most is I take out the interest earned in SA while the OA snowsball.

Hence, SA shielding does have a benefit for me since I can't take out OA interest without using up my SA.

I will write to CPF to check if interest-only withdrawals on OA can be done.

Current understanding of CPF partial withdrawal sequence is: interest from SA, interest from OA, most recent contrib to SA, most recent contrib to OA, rest of SA principal, rest of OA principal.

Above info has been widely shared in the CPF-focused Telegram group.

Once past 55, one idea is to withdraw interests only in Dec, for the SA and OA interests earned in the year from Jan thru Nov. This way principals not touched. CPF 1mil total (including RA) will yield about 20k+ in Jan-Nov interests based on the typical mix of amounts in the 4 accounts.

However, recently, a poster here on MM has claimed that CPF told him the withdrawal sequence has changed since 1 Jan 2022 - no more withdrawal of interests only. The Telegram group hasn't mentioned this.

Therefore, to be sure, best ask CPF directly yourself.

 

[a4973]

Current understanding of CPF partial withdrawal sequence is: interest from SA, interest from OA, most recent contrib to SA, most recent contrib to OA, rest of SA principal, rest of OA principal.

Above info has been widely shared in the CPF-focused Telegram group.

Once past 55, one idea is to withdraw interests only in Dec, for the SA and OA interests earned in the year from Jan thru Nov. This way principals not touched. CPF 1mil total (including RA) will yield about 20k+ in Jan-Nov interests based on the typical mix of amounts in the 4 accounts.

However, recently, a poster here on MM has claimed that CPF told him the withdrawal sequence has changed since 1 Jan 2022 - no more withdrawal of interests only. The Telegram group hasn't mentioned this.

Therefore, to be sure, best ask CPF directly yourself.

Hi , I'd like to join the CPF Telegram group. Able to sic the link? Thank you.

 

[polyglob]

Hi , I'd like to join the CPF Telegram group. Able to sic the link? Thank you.

https://t.me/Loo1M65

 

[Value.Matrix]

https://t.me/Loo1M65

I give up on the group. Too many parroting and not so practical info.

 

[polyglob]

I give up on the group. Too many parroting and not so practical info.

I think people seeking to optimize their CPF will find some nuggets and inspirational stories in that group.

Once you consider the chat content repetitive I suppose that means you have learnt most of the tips and tricks available.

 

[dork32]

CPL Life return. Seems like sweet spot is around 90 years old.
1st row - nos of years from withdrawal age
1st column - withdrawal age

Standard

15​

16​

17​

18​

19​

20​

21​

22​

23​

24​

25​

30​

65​

2.41%​

2.67%​

2.88%​

3.04%​

3.17%​

3.28%​

3.36%​

3.42%​

3.47%​

3.51%​

3.53%​

3.56%​

66​

2.80%​

3.04%​

3.22%​

3.37%​

3.48%​

3.57%​

3.64%​

3.69%​

3.73%​

3.75%​

3.77%​

3.76%​

67​

3.18%​

3.39%​

3.56%​

3.69%​

3.78%​

3.86%​

3.91%​

3.95%​

3.98%​

3.99%​

4.00%​

3.95%​

68​

3.55%​

3.74%​

3.89%​

4.00%​

4.08%​

4.14%​

4.18%​

4.20%​

4.22%​

4.22%​

4.22%​

4.14%​

69​

3.95%​

4.12%​

4.24%​

4.33%​

4.40%​

4.44%​

4.47%​

4.48%​

4.48%​

4.48%​

4.47%​

4.34%​

70​

4.35%​

4.49%​

4.59%​

4.66%​

4.71%​

4.74%​

4.75%​

4.75%​

4.74%​

4.73%​

4.70%​

4.54%​

i am sure that there is something wrong in your calculation. there is no sweet spot in cpf life standard. the spot just gets sweeter as your aged more. it would be very sweet if you can live till 200 years old

 

[vsvs24]

I give up on the group. Too many parroting and not so practical info.

The group is good for those who are quite lost about CPF. They are very patient. Always have new people joining and asking basic questions so have to keep repeating the answers.

But I find them over optimistic. Quite alarmed to see very young people in 30s and 40s chasing for 1 million target in CPF by putting their funds (aside from emergency funds) to topup SA or invest in S&P 500. And encouraging topup to the max for ERS. They don't seem to be concerned about liquidity.

And topping up children SA.

 

[polyglob]

But I find them over optimistic. Quite alarmed to see very young people in 30s and 40s chasing for 1 million target in CPF by putting their funds (aside from emergency funds) to topup SA or invest in S&P 500. And encouraging topup to the max for ERS. They don't seem to be concerned about liquidity.

The mechanical approach to achieving 1M65 was a refreshing idea. Then some people came up with more sensational targets like 4M65 and 1MOA, which entail taking more risk or working more years well beyond 'enough'.

 

[Okenba]

The group is good for those who are quite lost about CPF. They are very patient. Always have new people joining and asking basic questions so have to keep repeating the answers.

But I find them over optimistic. Quite alarmed to see very young people in 30s and 40s chasing for 1 million target in CPF by putting their funds (aside from emergency funds) to topup SA or invest in S&P 500. And encouraging topup to the max for ERS. They don't seem to be concerned about liquidity.

And topping up children SA.

Actually, we can do this here. Set up a sticky thread with FAQs about questions on CPF.
I'm sure can find a lot of questions and answers in MM.
Just needs someone to take charge.

 

[vsvs24]

Actually, we can do this here. Set up a sticky thread with FAQs about questions on CPF.
I'm sure can find a lot of questions and answers in MM.
Just needs someone to take charge.

Telegram easier to paste photo and save messages. Till now don't know how to put up photo on HWZ

It's ok to go there to ask questions if not sure. Just don't get blinded and too focus to maximize CPF returns without considering liquidity and rainy days.

 

[reddevil0728]

Telegram easier to paste photo and save messages. Till now don't know how to put up photo on HWZ

It's ok to go there to ask questions if not sure. Just don't get blinded and too focus to maximize CPF returns without considering liquidity and rainy days.

Hwz u need to upload it on a separate hosting site and paste the link here

 

[vsvs24]

Hwz u need to upload it on a separate posting site and paste the link here

More steps. I tried before. Sometimes can sometimes cannot. In the end I give up.

 

[reddevil0728]

More steps. I tried before. Sometimes can sometimes cannot. In the end I give up.

Definitely more steps but no choice unless you deluxe member

it should be always can. I reckon is the url that you use. How you post it