CPF at 55 Years Old

[AppleiPhone]

So your RA is now 110+? Have you tried withdrawing OA/SA and allowed?

Are you below BRS prior to your RA topups? RA topups cannot be withdrawn, have you confirmed with CPFB that if you pledge your property, there is money to be withdrawn from RA?

Be careful, double confirm with CPFB = if you did not pledge, any additions to OA/SA and total in OA/SA can be withdrawn and will not be sweep into RA at 65 since your RA is still below FRS altho you have VHR to makeup for it. I have seen a case where CPFB continue to sweep OA/SA into RA even the member have "VHR" to makeup for it but did not apply to pledge property - exact details I do not know, just shocking to know CPFB just sweep without advance notice to the member.

This morning COS said I can't pledge my flat and must add RA to 110+K. Her explanation a bit confusing. I plan to visit CPFB when I've time. Yes, I'm below BRS and I should able to hit the minimum amount RA gap by 2024 or latest beginning of 2025. She confirmed that CPF won't touch my OA/SA about 30K. Yes, I can withdraw all OA/SA so long I reach 110+K. By 2025, I expect my OA/SA to reach 100K if I continue self contribution. All OA/SA can be withdrawn if I wish otherwise I can leave it there to gain interest. Who knows that I may change my mind to top up FRS or ERS before 65 if I could for CPF Life.

 

[BBCWatcher]

This morning COS said I can't pledge my flat and must add RA to 110+K. Her explanation a bit confusing. I plan to visit CPFB when I've time. Yes, I'm below BRS and I should able to hit the minimum amount RA gap by 2024 or latest beginning of 2025.

Is that because of interest (including bonus interest)?

She confirmed that CPF won't touch my OA/SA about 30K.

Since you haven’t met the Full Retirement Sum the CPF Board will try to sweep more dollars into your Retirement Account just before CPF LIFE payouts start, starting with SA dollars, if you’re still short by then. The default is just before age 70. You would have to take some action, specifically to have a sufficient property pledge or charge, if you want some other outcome.

Yes, I can withdraw all OA/SA so long I reach 110+K.

With a sufficient property pledge or charge.

By 2025, I expect my OA/SA to reach 100K if I continue self contribution. All OA/SA can be withdrawn if I wish otherwise I can leave it there to gain interest.

Not yet. You need a sufficient property pledge or property charge if you want to do that since you haven’t met the Full Retirement Sum.

Since you haven’t met the FRS I believe the SA portion of compulsory contributions (and probably also all 3 account Voluntary Contributions, VC3As) will go into your RA. And the MA portion too if your MA is at the Basic Healthcare Sum. You can check your CPF statement for the last such contribution to see whether any dollars went into RA, but I believe that’s how it works if you haven’t met the Full Retirement Sum (or the Basic Retirement Sum with a sufficient property pledge/charge).

Who knows that I may change my mind to top up FRS or ERS before 65 if I could for CPF Life.

If you have a spouse it would likely be in your mutual interest (pun intended) to transfer your respective OA dollars to your Retirement Accounts (or to your spouse’s Special Account if your spouse is below 55 and hasn’t reached the Full Retirement Sum yet). Your OA dollars only earn 2.5%, not the 4.04% your Special Account earns (or the 4.00% your Retirement Account earns, likely 4.08% in 2024). You have to make up the shortfall somehow if you want to tap those OA/SA dollars, so you might as well get OA dollars instead of SA dollars in there if you can. Cross-spousal transfers is (are) an excellent solution.

 

[BBCWatcher]

I should add that before OA to RA/SA cross-spousal transfers take a look at whether anyone can qualify for tax relief, or even if you can get Matched Savings Scheme contributions, via direct cash injections into your Retirement Account.

 

[yoongf]

This morning COS said I can't pledge my flat and must add RA to 110+K. Her explanation a bit confusing. I plan to visit CPFB when I've time. Yes, I'm below BRS and I should able to hit the minimum amount RA gap by 2024 or latest beginning of 2025. She confirmed that CPF won't touch my OA/SA about 30K. Yes, I can withdraw all OA/SA so long I reach 110+K. By 2025, I expect my OA/SA to reach 100K if I continue self contribution. All OA/SA can be withdrawn if I wish otherwise I can leave it there to gain interest. Who knows that I may change my mind to top up FRS or ERS before 65 if I could for CPF Life.

I believe the confusion arise from the terminology you are using.

U are talking abt withdrawing all OA/SA.
But CPF withdrawal rules does not refer to OA/SA funds.
Any amt available for withdrawal comes from unreserved RA first, followed by SA, then OA.

OA and SA continues to earn interest that stays in their respective OA / SA acct.

Your terminology suggest that these interest can be withdrawn.

Whether there are sweeps or not, the amt available for withdrawal is unaffected.

https://www.cpf.gov.sg/member/faq/r...n-i-choose-which-cpf-account-to-withdraw-from

 

[yoongf]

You already 55?

A few more years to go.

Am just trying to reverse engineer the CPF algorithm.

Quite obvious that CPF has a strong bias towards everyone having FRS in RA.

 

[item2sell]

A few more years to go.

Am just trying to reverse engineer the CPF algorithm.

Quite obvious that CPF has a strong bias towards everyone having FRS in RA.

yes. I am aiming at BRS in RA with property pledge.

this is important otherwise I will not be able to keep the funds in SA / OA if CPF sweep daily to RA

 

[yoongf]

Are you sure if you already pledge to withdraw RA down to BRS, then at 65 CPFB still sweep OA/SA to RA? I am talking about 65 not 55!

CPF did not say anything abt the last date of sweeping.

Even if u sell hse at 80yrs old, the funds will return to OA, and swept to RA to meet FRS.

Whether there is sweeping or not, it does not affect withdrawal amounts.

In fact, sweeping benefits acct holders. Interest earned in OA/SA cant be withdrawn. Regular automated Sweeping allows 2.5% funds to be moved to a 4% acct.

But i hv to also clarify.. those born before 1958, whether got voluntary join CPF Life.. the Algorithm seems to be different.

 

[BBCWatcher]

CPF did not say anything abt the last date of sweeping.

If your Retirement Account has not been funded to the Full Retirement Sum (or if you don’t have a sufficient property pledge/charge and haven’t withdrawn money pursuant to that pledge/charge) then the CPF Board will attempt another sweep shortly before CPF LIFE payouts start. By default that’s shortly before age 70, but if you start CPF LIFE payouts before age 70 the sweep will be correspondingly earlier.

The CPF Board used to have the second sweep at age 65 for everyone who needed a second sweep, but they changed that practice recently to connect the second sweep to CPF LIFE timing.

Whether there is sweeping or not, it does not affect withdrawal amounts.

It can, simply because of interest rate differences between accounts. Your own “sweep” might work better for you than the CPF Board’s default sweep. “It depends.”

 

[Terencechen]

CPF did not say anything abt the last date of sweeping.

Even if u sell hse at 80yrs old, the funds will return to OA, and swept to RA to meet FRS.

Whether there is sweeping or not, it does not affect withdrawal amounts.

In fact, sweeping benefits acct holders. Interest earned in OA/SA cant be withdrawn. Regular automated Sweeping allows 2.5% funds to be moved to a 4% acct.

But i hv to also clarify.. those born before 1958, whether got voluntary join CPF Life.. the Algorithm seems to be different.

reviving this forum and at the same time answering to those before 1958

but my parents are born before 1958. none of them are in CPF life.
and the same time, none of them hit FRS or BRS when they hit 55

 

[homer123]

This morning COS said I can't pledge my flat and must add RA to 110+K. Her explanation a bit confusing. I plan to visit CPFB when I've time. Yes, I'm below BRS and I should able to hit the minimum amount RA gap by 2024 or latest beginning of 2025. She confirmed that CPF won't touch my OA/SA about 30K. Yes, I can withdraw all OA/SA so long I reach 110+K. By 2025, I expect my OA/SA to reach 100K if I continue self contribution. All OA/SA can be withdrawn if I wish otherwise I can leave it there to gain interest. Who knows that I may change my mind to top up FRS or ERS before 65 if I could for CPF Life.

I am below BRS at 55 and my flat is fully paid.. If I do not want to top up even to BRS , do you know what will happen to my RA?

 

[AppleiPhone]

I am below BRS at 55 and my flat is fully paid.. If I do not want to top up even to BRS , do you know what will happen to my RA?

Nothing will happen to your RA but you will get less CPF life payout. After 55, if you sell away your home, return full VHR amount first, this amount will go to your RA to fill up FRS and the balance of housing sale will pay you in cash.

 

[homer123]

Nothing will happen to your RA but you will get less CPF life payout. After 55, if you sell away your home, return full VHR amount first, this amount will go to your RA to fill up FRS and the balance of housing sale will pay you in cash.

What happen if I don't sell my house? Does CPF transfer all my SA about 30+k into RA at 55?

 

[qhong61]

What happen if I don't sell my house? Does CPF transfer all my SA about 30+k into RA at 55?

Yes

 

[AppleiPhone]

What happen if I don't sell my house? Does CPF transfer all my SA about 30+k into RA at 55?

No, CPF very nice will retain 5K to your SA for you to withdraw, the rest go to RA and wait till CPF life payout.

 

[wira]

I am below BRS at 55 and my flat is fully paid.. If I do not want to top up even to BRS , do you know what will happen to my RA?

why not top up CPF to FRS leh ?
CPF life still one of the best annuity plan out there and could form a core monthly retirement income for basic living costs while your dividends can provide for holidays and other spending. (though i know your dividend income now more than enough to cover your expenses already )

 

[BBCWatcher]

CPF assets are also very well protected against creditors and adverse court rulings.

 

[royalmix]

I am below BRS at 55 and my flat is fully paid.. If I do not want to top up even to BRS , do you know what will happen to my RA?

What happen if I don't sell my house? Does CPF transfer all my SA about 30+k into RA at 55?

You are 55 or not yet 55?

What happens at 55? CPFB will transfer all SA/OA monies, except 5k in OA, to RA. You are allowed to withdraw the 5k. After 55, if there are monies in SA/OA, CPFB will transfer all to RA to makeup FRS or BRS+ property charge (if your flat used CPFOA monies to pay) if you attempt to withdraw those SA/OA monies, or at 65/70 when you have to "choose" CPF Life/RSS, depending upon the rules at that time. If you have at least 60k at PEA, CPFB will ask you to join CPF Life with those monies. Something like that based on current rules.

There is no need to topup if you have other choices/considerations.

 

[homer123]

You are 55 or not yet 55?

What happens at 55? CPFB will transfer all SA/OA monies, except 5k in OA, to RA. You are allowed to withdraw the 5k. After 55, if there are monies in SA/OA, CPFB will transfer all to RA to makeup FRS or BRS+ property charge (if your flat used CPFOA monies to pay) if you attempt to withdraw those SA/OA monies, or at 65/70 when you have to "choose" CPF Life/RSS, depending upon the rules at that time. If you have at least 60k at PEA, CPFB will ask you to join CPF Life with those monies. Something like that based on current rules.

There is no need to topup if you have other choices/considerations.

Thanks..I will be 55 in less than 3 months

 

[homer123]

why not top up CPF to FRS leh ?
CPF life still one of the best annuity plan out there and could form a core monthly retirement income for basic living costs while your dividends can provide for holidays and other spending. (though i know your dividend income now more than enough to cover your expenses already )

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

 

[BBCWatcher]

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

It's nice to have 2 or more pensions.