CPF at 55 Years Old

[yoongf]

I cannot find any reference of the VHR and BRS relation

do you have the email or other reference from CPF about this

Property pledge is to ensure that when u sell property, the FRS is able to be fully restored.
So if nett property remaining value is lower that BRS, that objective will not be achieved, thus the amt available for withdrawal is substantially lower. The example link in this page goes to a pdf file with a few scenarios.

https://www.cpf.gov.sg/member/faq/r...savings-for-my-property-can-i-withdraw-my-cpf

 

[Atrina_Boy]

The more I read here the more i confuse about CPF

 

[meekiatah]

Image not working.

This is the link I'm trying to attach:

https://ibb.co/1Qbhzr3

 

[yoongf]

https://ibb.co/1MXFf9K

 

[AppleiPhone]

I don’t know about your situation.
IF what you said is true. Two groups of people will be affected
1. Used cash pay property and want to opt for BRS
2. Those who did VHR and want to opt for BRS.

for past 20 years. I have not heard of this in my doctorate degree of CPF

because you never fall into this situation. you talk to CPF staff then you know.

 

[meekiatah]

Property pledge is to ensure that when u sell property, the FRS is able to be fully restored.
So if nett property remaining value is lower that BRS, that objective will not be achieved, thus the amt available for withdrawal is substantially lower. The example link in this page goes to a pdf file with a few scenarios.
https://www.cpf.gov.sg/member/faq/r...savings-for-my-property-can-i-withdraw-my-cpf

So the nett property value becomes the VHR, that's why if it's lower than BRS, it's not enough to bring RA to FRS level .. am I right to put it this way?

 

[yoongf]

i just check my cpf dashboard again.

VHR is $799
OA $275
SA $147,000

In this case, how much can I withdraw on 55?

$5k.

Becos there is only $799 available to restore yr CPF to FRS.... upon sale of property.

 

[yoongf]

So the nett property value becomes the VHR, that's why if it's lower than BRS, it's not enough to bring RA to FRS level .. am I right to put it this way?

Nett property value must also be pledged to CPF. In your case.. only the VHR amt is pledge to CPF.

Hmm .. not sure if there is a method to pledge property for an amt not covered by VHR.

 

[item2sell]

Thanks @AppleiPhone for sharing.

new things learn today. Cannot suka suka do housing refund

on my way to post doctorate of CPF

 

[meekiatah]

Nett property value must also be pledged to CPF. In your case.. only the VHR amt is pledge to CPF.
Hmm .. not sure if there is a method to pledge property for an amt not covered by VHR.

I'm toying with the idea of paying off the VHR so that there is no owing CPF before 55 years old birthday..

 

[AppleiPhone]

I'm toying with the idea of paying off the VHR so that there is no owing CPF before 55 years old birthday..

If you clear your VHR, your RA must be $198,800. Your RA is $142,275 + $880 and your SA is $5000. Yes, you can PayNow yourself $2000 per day, so it takes 3 days to clear your SA.

Meaning, you take back $5k-$880 = $4120 from CPF.

 

[Value.Matrix]

I'm toying with the idea of paying off the VHR so that there is no owing CPF before 55 years old birthday..

Reading so much, it's best to play with SA shield, and try to top up cpf to FRS if possible. At age 65/70 (when you activate cpf life payout), another sweep of SA/OA will be done to RA to try and form FRS again.

if you done this earlier (reaching FRS before 55), you are able to do a lump sum withdrawal of 20% of the 55 years old FRS before cpf life payout starts (as it is taken from SA/OA).

So whatever you do, money in SA will go to RA (at least 50% even if you withdraw before cpf life start, since for withdrawal from SA, 50% will be put into RA). (If FRS is not reached)

If you got money in fixed D, better to use SA as your fixed D imho.

 

[item2sell]

I'm toying with the idea of paying off the VHR so that there is no owing CPF before 55 years old birthday..

after 55, simplicity sake BRS = $100k

Scenario A
If member has VHR of -$100k and SA+OA has $200k. He can withdraw $100k if he pledge property for BRS

Scenario B
if same member use $100k cash to refund house loan making VHR =$0. CPF SA+OA=$200k. He no longer able to choose BRS. He can only withdraw $5k.

if the above is right. Doing housing refund seals off the BRS path.

Many financial articles are advising to do housing refunds without warning about the BRS fatality

 

[Value.Matrix]

after 55, simplicity sake BRS = $100k

Scenario A
If member has VHR of -$100k and SA+OA has $200k. He can withdraw $100k if he pledge property for BRS

Scenario B
if same member use $100k cash to refund house loan making VHR =$0. CPF SA+OA=$200k. He no longer able to choose BRS. He can only withdraw $5k.

if the above is right. Doing housing refund seals off the BRS path.

Many financial articles are advising to do housing refunds without warning about the BRS fatality

Scenario B still can do property pledge. https://www.cpf.gov.sg/member/faq/r...n still choose to,if you pledge your property.

Anyway it's been discussed till death on many cpf threads. You missed out I guess.

 

[fr33d0m]

The more I read here the more i confuse about CPF

If you are confused, it means you never fully grasp CPF rules in the beginning

 

[Fishdim]

Hi TS, sorry to ride on this thread. I'll be turning 55 next year. I have been self-employed most of my working life and may not have BRS when my RA will be created. I would like to set aside amount from my OA for my kid's education. I'm thinking of buying 6 mth Tbills to set that amount aside so that the $ will not be swept into RA. Hubby is paying for our HDB. Any thoughts / advice whether this is feasible will be greatly appreciated.

TIA

 

[Atrina_Boy]

If you are confused, it means you never fully grasp CPF rules in the beginning

Spot on .

 

[~sabaisabai~]

VHR is the amt we used cpf oa + grant?

let's say we used 500k oa, means we return 500k under vhr to cpf in order to opt for BRS?

 

[Value.Matrix]

VHR is the amt we used cpf oa + grant?

let's say we used 500k oa, means we return 500k under vhr to cpf in order to opt for BRS?

No need. But opting for BRS means you can withdraw money from RA should you require to. Its a last resort thing imho.

 

[Value.Matrix]

Hi TS, sorry to ride on this thread. I'll be turning 55 next year. I have been self-employed most of my working life and may not have BRS when my RA will be created. I would like to set aside amount from my OA for my kid's education. I'm thinking of buying 6 mth Tbills to set that amount aside so that the $ will not be swept into RA. Hubby is paying for our HDB. Any thoughts / advice whether this is feasible will be greatly appreciated.

TIA

Yes you can. But the 2nd sweep will come at cpf life payout, so if you think it's OK, then let it sit inside. But OA monies are stuck behind SA (should you have any), so getting FRS is still a better decision if you have enough money, and just keep money in SA, so you can withdraw it yearly if required, rather than stuck behind SA (provided you got enough money for FRS)