CPF at 55 Years Old

[wira]

I have pension while working overseas...that is why I never have cpf contributions

oh wow thats nice ......

i think you are already set for life !

 

[kiasutoo]

I have an unusual situation and would like to seek the opinion from the folks here. I been abroad for the last 24yrs. I don't really have much money in SA/OA, around $16K combined. I have a few more year before reaching 55 and was wondering what would happen at 65 if I don't have $60K as required for CPFLife? Is it even worth it to top up to the min sum to enroll in CPFLife? I have used the calculator in CPF website and payout is around $600/month, which makes the payback at ~9yrs, this is a pretty decent return and it is gravy after that.

 

[BBCWatcher]

I have an unusual situation and would like to seek the opinion from the folks here. I been abroad for the last 24yrs. I don't really have much money in SA/OA, around $16K combined. I have a few more year before reaching 55 and was wondering what would happen at 65 if I don't have $60K as required for CPFLife?

You're not required to make any top ups to CPF.

If you end up with less than $60,000 (OA+RA) at age 65+ then you have the option, but not obligation, to participate in CPF LIFE.

Is it even worth it to top up to the min sum to enroll in CPFLife?

You're eligible for a lot of tax relief, and you're still in bonus interest territory (5.08% currently for SA and MA). I think that's quite attractive. You should also probably transfer OA dollars to SA to earn more interest. You don't have very many OA dollars, and unless you really need those few OA dollars to pay for a home in Singapore (help with a down payment, or mortgage) then I'd get them pushed into SA now.