CPF chats

[twinklingstars]

Hi everyone, I'm in my early 30s, have yet to start topping up my SA but am thinking of starting to do so this year. My OA are mostly wiped out to pay for my HDB flat and it's only after 3 years that I start to see my OA growing, albeit very slowly (monthly OA contribution > monthly housing loan)

My only concern is that I will not be able to achieve min sum despite the topping up, plus god knows what kind of policies the govt will implement, afterall, it will be another 20 odd years before i reach 55...

 

[crimsontactics]

Hi everyone, I'm in my early 30s, have yet to start topping up my SA but am thinking of starting to do so this year. My OA are mostly wiped out to pay for my HDB flat and it's only after 3 years that I start to see my OA growing, albeit very slowly (monthly OA contribution > monthly housing loan)

My only concern is that I will not be able to achieve min sum despite the topping up, plus god knows what kind of policies the govt will implement, afterall, it will be another 20 odd years before i reach 55...

If you are not mentally ready, then you shouldn't top up your CPF.

You should only invest in anything when you're comfortable with it.

Don't force yourself.

Sent from . using GAGT

 

[twinklingstars]

If you are not mentally ready, then you shouldn't top up your CPF.

You should only invest in anything when you're comfortable with it.

Don't force yourself.

Sent from . using GAGT

Thanks for the reply. I only have $10K in my OA. I'm using my OA to pay my HDB loan and my monthly loan is almost equal to my monthly OA contribution, my OA account won't be able to grow much and I still have 27 years more to pay for my HDB loan.
Also, I only have $37K in my SA currently, I know its on the low side. I was thinking if I start to top up my SA starting this year, I might still be able to reach the min sum by 55.

 

[dork32]

Thanks for the reply. I only have $10K in my OA. I'm using my OA to pay my HDB loan and my monthly loan is almost equal to my monthly OA contribution, my OA account won't be able to grow much and I still have 27 years more to pay for my HDB loan.
Also, I only have $37K in my SA currently, I know its on the low side. I was thinking if I start to top up my SA starting this year, I might still be able to reach the min sum by 55.

the reason why your sa is low is because the direct sa contribution is low and you ma is not maxed out. once it is maxed out, your sa will rise much faster

most people sa will be able to reach frs before 55.

topping up is good if you are looking at a 20year fd at 4%

 

[yongsaver]

Thanks for the reply. I only have $10K in my OA. I'm using my OA to pay my HDB loan and my monthly loan is almost equal to my monthly OA contribution, my OA account won't be able to grow much and I still have 27 years more to pay for my HDB loan.
Also, I only have $37K in my SA currently, I know its on the low side. I was thinking if I start to top up my SA starting this year, I might still be able to reach the min sum by 55.

when me bought my first HDB flat 22 years ago, me and wife OA also kanna zerorised. its very normal la to have low cpf when starting out. dont be discouraged when u read folks here with high cpf. they either top up, have high income/bonus or near 55 or combo.

policies may change but there is one thing u can be sure of, come time to harvest the fruits, u will be better off doing top ups over the years.

more money more top up, less money less top up, no money, no top up lor. relax bro, its not insurance policy - dont pay premium, finish liao.

to counter buyer regret, me use a simple strategy when it comes to long term investment, i make sure i have equivalent cash amount on hand. example. if have 100 dollars to invest, me just invest $50 nia, the other $50 keep as cash. so wont have feeling of "what happens if.."

 

[Opps-gal]

https://www.cpf.gov.sg/askjamie/user/uploads/Illustration_of_topup_monies_in_RA.pdf

For those top up with cash.

 

[oceanicmanta]

https://www.cpf.gov.sg/askjamie/user/uploads/Illustration_of_topup_monies_in_RA.pdf

For those top up with cash.

Gotta to be careful ...

This example applies where one is trying to withdraw excess RA above BRS, with the help of a Property Pledge (refer to the *** notes & the 3 situations)

It does not apply where the FRS for RA is fully met without Property Pledge, regardless of cash top ups to SA.

There should be a Header for this illustration to avoid confusion. I was confused when I first saw this last year.

 

[fatalerror11]

Gotta to be careful ...

This example applies where one is trying to withdraw excess RA above BRS, with the help of a Property Pledge (refer to the *** notes & the 3 situations)

It does not apply where the FRS for RA is fully met without Property Pledge, regardless of cash top ups to SA.

There should be a Header for this illustration to avoid confusion. I was confused when I first saw this last year.

Does it mean that if you have significant top up monies (including accrued interest), but the balance you have in RA exceeds the FRS, then u can withdraw the amount in excess of FRS?

Example: i have 300k in RA, of which 200k is from topups. Can i withdraw $119k ($300k - $181k)?

 

[yoongf]

I had the same question as you. After much analysis, this is my assessment.

At 55, only FRS amt is transferred to the newly created RA account. Any excess is left in the OA/SA account.

OA and SA hv no restriction to withdraw, regardless is from MC/VC/TopUp.

So my reading is.. yes , TopUp amt in excess of FRS can be withdrawn.
Ok.. i could be wrong.. anyone hv a different understanding?

Does it mean that if you have significant top up monies (including accrued interest), but the balance you have in RA exceeds the FRS, then u can withdraw the amount in excess of FRS?

Example: i have 300k in RA, of which 200k is from topups. Can i withdraw $119k ($300k - $181k)?

 

[crimsontactics]

Does it mean that if you have significant top up monies (including accrued interest), but the balance you have in RA exceeds the FRS, then u can withdraw the amount in excess of FRS?

Example: i have 300k in RA, of which 200k is from topups. Can i withdraw $119k ($300k - $181k)?

Usually not.

Withdrawal from RA is slightly more complicated.

The FRS only applies to SA/OA.

RA is something else.

Plus for your BRS calculation, non top-up money is used first to meet your BRS, followed by top-up money.

And top-up money can't be withdrawn.

So chances of withdrawing very low.

Sent from . using GAGT

 

[crimsontactics]

I had the same question as you. After much analysis, this is my assessment.

At 55, only FRS amt is transferred to the newly created RA account. Any excess is left in the OA/SA account.

OA and SA hv no restriction to withdraw, regardless is from MC/VC/TopUp.

So my reading is.. yes , TopUp amt in excess of FRS can be withdrawn.
Ok.. i could be wrong.. anyone hv a different understanding?

Not really for RA. You can't withdraw it based on FRS.

It can only be withdrawn at 65 usually some other calculation.

Sent from . using GAGT

 

[jamescrisis]

I had the same question as you. After much analysis, this is my assessment.

At 55, only FRS amt is transferred to the newly created RA account. Any excess is left in the OA/SA account.

OA and SA hv no restriction to withdraw, regardless is from MC/VC/TopUp.

So my reading is.. yes , TopUp amt in excess of FRS can be withdrawn.
Ok.. i could be wrong.. anyone hv a different understanding?

Thats not true. Top up amount ($7K/year tax free) cannot be withdrawn as the excess at age 55 because it is meant to be for your retirement. It will be considered part of your RA for your CPF life once you read drawdown age. I have clarified with CPF before on this, they basically have a system to track what is the amount that came from top-up. Note the difference between top-up and VC.

 

[jamescrisis]

I can see it from the sentence, but it is not logic to me. That's why I am feeling confused. In 2019, she worked with contribution to CPF. This year in 2020, no salary and hence no contribution to CPF, and hence it makes sense to have a top-up from spouse to continue contribution to CPF in 2020.

Regardless of her income in 2021, I can top up her SA in 2021 because of she having no income in 2020 and claim the tax relief in 2022?

You can do the top-up regardless. You just can't claim Tax relief on it. There is logic in the intent, just that its not advantageous to you.

 

[crimsontactics]

Thats not true. Top up amount ($7K/year tax free) cannot be withdrawn as the excess at age 55 because it is meant to be for your retirement. It will be considered part of your RA for your CPF life once you read drawdown age. I have clarified with CPF before on this, they basically have a system to track what is the amount that came from top-up. Note the difference between top-up and VC.

Not necessary true.

The 7k top up and interest can be withdrawn once you have more than FRS.

So if you start young, you can draw quite a decent sum of money at 55. Even tho most of it are RSTU money.

Sent from . using GAGT

 

[henrylbh]

Does it mean that if you have significant top up monies (including accrued interest), but the balance you have in RA exceeds the FRS, then u can withdraw the amount in excess of FRS?

Example: i have 300k in RA, of which 200k is from topups. Can i withdraw $119k ($300k - $181k)?

You need to set aside BRS in RA which is half of FRS (at age 55) with non-top money to determine whether any amount in excess of BRS can be withdrawn with sufficient property charge.

If the said BRS amount at age 55 includes top-up money, then you got nothing to withdraw, even though you may have 300k in RA subsequently

Only non-top money in excess of BRS set at age 55 can be withdrawn with sufficient property charge.

In your case, even though may have 300k in RA, you can only withdraw a max of $90.50k (half of FRS at 55) any time with sufficient property charge, provided withdrawal does not include top-up money. So for you, it's only 9.5k max (100k - 90.5k), provided you had 100k in RA at 55.

 

[crimsontactics]

You need to set aside BRS in RA which is half of FRS (at age 55) with non-top money to determine whether any amount in excess of BRS can be withdrawn with sufficient property charge.

If the said BRS amount at age 55 includes top-up money, then you got nothing to withdraw, even though you may have 300k in RA subsequently

Only non-top money in excess of BRS set at age 55 can be withdrawn with sufficient property charge.

In your case, even though may have 300k in RA, you can only withdraw a max of $90.50k (half of FRS at 55) any time with sufficient property charge, provided withdrawal does not include top-up money. So for you, it's only 9.5k max (100k - 90.5k), provided you had 100k in RA at 55.

I think he can withdraw $10k bah.

His non top-up already $100k.

BRS is only $90.5k this year.

 

[henrylbh]

I think he can withdraw $10k bah.

His non top-up already $100k.

BRS is only $90.5k this year.

Isn't that what I mentioned at that end ..... 9.5k only, provided he had 100k at 55 and not 100k including interest after 55.

 

[crimsontactics]

Isn't that what I mentioned at that end ..... 9.5k only, provided he had 100k at 55 and not 100k including interest after 55.

Sorry I missed it out...

 

[8zaoyu]

You need to set aside BRS in RA which is half of FRS (at age 55) with non-top money to determine whether any amount in excess of BRS can be withdrawn with sufficient property charge.

If the said BRS amount at age 55 includes top-up money, then you got nothing to withdraw, even though you may have 300k in RA subsequently

Only non-top money in excess of BRS set at age 55 can be withdrawn with sufficient property charge.

In your case, even though may have 300k in RA, you can only withdraw a max of $90.50k (half of FRS at 55) any time with sufficient property charge, provided withdrawal does not include top-up money. So for you, it's only 9.5k max (100k - 90.5k), provided you had 100k in RA at 55.

I presume you are under 55 to have said above. If you are there at the CPF Talk for 55 year olds ( I think these are the mostly educated ones), most don't want their beyond FRS ( only currently $181k but increasing - check your 55 yr old year amount ) to be scammed or greedied away from promised beyond 2.5% investments (check brokerage fee cuts) . If you are younger than 55, and self employed in own time own targets own retirement jobs, just reaching Basic Retirement Sum in CPF is really insufficient! Your property pledge does not allow you to dismantle brick by brick to buy Adult Ensure/Glucerna Milk powder, nasal tubes and diapers should you need them after retired at 65 or 70

 

[cal3135]

There is limited ways u can withdraw from RA. 20% lump sum at 65 or via PEA monthly payout... etc.

Key is if ur SA + OA = FRS prior 55, upon RA formed a day after 55 with 181k... the balance in SA + OA can be withdrawn anytime.

BRS pledged with house is diffn & will be subject to conditions prior withdrawal...

Does it mean that if you have significant top up monies (including accrued interest), but the balance you have in RA exceeds the FRS, then u can withdraw the amount in excess of FRS?

Example: i have 300k in RA, of which 200k is from topups. Can i withdraw $119k ($300k - $181k)?

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