CPF chats

[cal3135]

40.5k withdrawal

Hi guys... just to check... assuming already hit FRS of 181k and 50k out of the 181k are from topups. If I pledge property... can I withdraw 90.5k or only 40.5k?

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[luvpraline]

wah can't believe the debate was reignited hope everyone's doubts have been laid to rest.

anyone knows if at 55, after my RA has been formed with FRS, let's say there is 0 left in my SA, what is the limit to how much i can top up into SA with cash?

 

[Thoreldan]

wah can't believe the debate was reignited hope everyone's doubts have been laid to rest.

anyone knows if at 55, after my RA has been formed with FRS, let's say there is 0 left in my SA, what is the limit to how much i can top up into SA with cash?

U cant top up to sa after 55

 

[vsvs24]

wah can't believe the debate was reignited hope everyone's doubts have been laid to rest.

anyone knows if at 55, after my RA has been formed with FRS, let's say there is 0 left in my SA, what is the limit to how much i can top up into SA with cash?

After 55 cannot top up SA anymore. Top up goes to RA. After 55, only contribution to SA is from employment.

 

[Tiger9119]

After 55 cannot top up SA anymore. Top up goes to RA. After 55, only contribution to SA is from employment.

After 55, a certain percentage of the voluntary contribution will go into SA.

 

[cal3135]

After 55y, u are able to VC into OASAMA subject to 37740 limit / year...

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[luvpraline]

thanks all for your replies

if i VC into OASAMA after 55 (after FRS set aside in RA), i can enjoy the 2.5 / 4% interest and still be able to withdraw anytime from OA & SA? sounds good... except for the MA portion

 

[lifeafter41]

thanks all for your replies

if i VC into OASAMA after 55 (after FRS set aside in RA), i can enjoy the 2.5 / 4% interest and still be able to withdraw anytime from OA & SA? sounds good... except for the MA portion

Yes, that’s how it goes.
Problem is VC, only very little goes into SA, most goes in OA and if MA hits the max for that year, 2020 is 60k, it will overflow to OA.

Hence, it’s more towards 2.5%, rather then 4%......
And yes, able to withdraw anytime from ones OA/SA.

 

[Tiger9119]

Yes, that’s how it goes.
Problem is VC, only very little goes into SA, most goes in OA and if MA hits the max for that year, 2020 is 60k, it will overflow to OA.

Hence, it’s more towards 2.5%, rather then 4%......
And yes, able to withdraw anytime from ones OA/SA.

Have to withdraw from SA first.

 

[henrylbh]

Have to withdraw from SA first.

Interest accrued to month before withdrawal and current month's contributions will be taken out before SA follow by OA to meet the requested amount of withdrawal.

 

[oceanicmanta]

Interest accrued to month before withdrawal and current month's contributions will be taken out before SA follow by OA to meet the requested amount of withdrawal.

I think you mentioned before in other threads can also request withdrawal of just the interest only ?

did not know the significance of that until today

 

[BBCWatcher]

I think you mentioned before in other threads can also request withdrawal of just the interest only ?
did not know the significance of that until today

Don’t get too excited, though. Interest withdrawn doesn’t continue earning CPF interest and doesn’t compound. It’s all still real money. Even 2.5% interest is pretty attractive right now.

Quite simply you shouldn’t withdraw anything unless you need the money now for day to day spending, you have no lower yielding sources of funds, and you’re satisfied with the resulting portfolio allocations after the withdrawal.

If you’re making a big withdrawal and have a big Special Account balance (>$40,000) then it might make sense to raise a Special Account “shield” for the withdrawal. The first $40,000 will still have to come from SA but the remainder will come from OA.

As another “workaround” to draw from OA before SA, you can continue using OA dollars for housing purposes (to make mortgage payments for example).

 

[Kaypohji]

Do you guys mean after I have set aside FRS in RA, when I want to withdraw the excess in my oa and sa, cpf will force me to withdraw from sa first before touching oa ?

How much is that? Have to keep withdrawing from sa until it depleted or ?

 

[Tiger9119]

Do you guys mean after I have set aside FRS in RA, when I want to withdraw the excess in my oa and sa, cpf will force me to withdraw from sa first before touching oa ?

How much is that? Have to keep withdrawing from sa until it depleted or ?

From CPF website:

Withdrawals of CPF savings from 55


Q I am 55 years old but have not decided what to do with my CPF savings. Can I take out only when I need it?
A You can take out your withdrawable CPF retirement savings anytime from age 55. You can also make partial withdrawals if you do not need the full sum at one go. If you make a partial withdrawal, your Special Account savings will be paid first, followed by your Ordinary Account savings.

https://www.cpf.gov.sg/members/FAQ/...avings from 55&folderid=12854&ajfaqid=2189239

 

[Kaypohji]

Not good... force us to draw down the higher interest account first

From CPF website:

Withdrawals of CPF savings from 55


Q I am 55 years old but have not decided what to do with my CPF savings. Can I take out only when I need it?
A You can take out your withdrawable CPF retirement savings anytime from age 55. You can also make partial withdrawals if you do not need the full sum at one go. If you make a partial withdrawal, your Special Account savings will be paid first, followed by your Ordinary Account savings.

https://www.cpf.gov.sg/members/FAQ/...avings from 55&folderid=12854&ajfaqid=2189239

 

[hmyoth]

I think the sequence is SA interest, OA interest , SA and lastly OA.
Cannot rem the interest is the withdrawal mth interest or the yearly interest to date.

 

[8zaoyu]

Don’t get too excited, though. Interest withdrawn doesn’t continue earning CPF interest and doesn’t compound. It’s all still real money. Even 2.5% interest is pretty attractive right now.

Quite simply you shouldn’t withdraw anything unless you need the money now for day to day spending, you have no lower yielding sources of funds, and you’re satisfied with the resulting portfolio allocations after the withdrawal.

If you’re making a big withdrawal and have a big Special Account balance (>$40,000) then it might make sense to raise a Special Account “shield” for the withdrawal. The first $40,000 will still have to come from SA but the remainder will come from OA.

As another “workaround” to draw from OA before SA, you can continue using OA dollars for housing purposes (to make mortgage payments for example).

That's why somebody said you don't know what you don't know. But you will know in future when your S'pore Citizen child graduates from local govt Universities and that happens just after 55, either they pay up their Tuition Grants used for study in cash to avoid interests or with the help from Papa or Mama CPF (but...after they have fullfilled the FULL Retirement Sums first which actually their SA past contribution ratio is less than OA) Their left behind money is usually more on OA with less in SA. Yes, as being after 55 years old, it is having to withdraw the SA first before OA, can always input back to Enhanced Retirement Sum! Sad for Wealth Portforlio Finance/Insurance/Property Agents to hear this if you are after their money. The HDB coffee shop uncles and housewives more streetsmart than our MPs.Got to feedback our MPs every now and then - in their "KNN" or "bluebird" language

 

[lifeafter41]

I think the sequence is SA interest, OA interest , SA and lastly OA.
Cannot rem the interest is the withdrawal mth interest or the yearly interest to date.

Well if a person has 200k in SA and 200k in OA, after setting aside FRS, based on the 4% and 2.5% respective rate, one could actually draw S$666 + S$416 every month.........

Not too bad, come to think of it, without touching one’s principal in the SA/OA......

 

[starlight318]

Well if a person has 200k in SA and 200k in OA, after setting aside FRS, based on the 4% and 2.5% respective rate, one could actually draw S$666 + S$416 every month.........

Not too bad, come to think of it, without touching one’s principal in the SA/OA......

There's also additional 1 % on the first 60k and if I'm not wrong another 1% on the first 30k for 55 yo and above. So that's $900 more

 

[rrr2015]

i think after 55 these additional interest goes into RA

There's also additional 1 % on the first 60k and if I'm not wrong another 1% on the first 30k for 55 yo and above. So that's $900 more