CPF chats

[77james]

IF you have property, but don’t intend to pledge. (BRS + Property)

Using FRS as 181K.

When 55, if yr combined OA and SA exceed 181k. Example 200k but u top up SA using 19k.

So the top up of 19k in SA account cannot be withdrawn right as CPF board already stated cannot from Top up of SA.

But if u tell CPF board my 19k extra is from the CPF contribution in OA and SA over the years. Then they can allow me to withdraw at 55 right?

So it really depends on how u tell CPF

 

[crimsontactics]

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

Some people choose to go BRS because they can invest their money better than CPF.

Not necessarily because they need to use the money at 55.

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[crimsontactics]

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 the balance in SA + OA can be withdrawn anytime.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...

xs HardwareZone Forums app

Actually only $181k is taken away if you have $186k and above in your OA/SA.

If you have less than $186k, RA won't take $181k as CPF will leave $5k in your OA/SA for you to withdraw unconditionally.

For example, if you have $185k in your SA/OA at 55, only $180k will be used to form your RA.

You can then choose whether to transfer $1k from your OA to RA.

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[crimsontactics]

IF you have property, but don’t intend to pledge. (BRS + Property)

Using FRS as 181K.

When 55, if yr combined OA and SA exceed 181k. Example 200k but u top up SA using 19k.

So the top up of 19k in SA account cannot be withdrawn right as CPF board already stated cannot from Top up of SA.

But if u tell CPF board my 19k extra is from the CPF contribution in OA and SA over the years. Then they can allow me to withdraw at 55 right?

So it really depends on how u tell CPF

It can be withdrawn if you are above FRS, regardless of where the money come from.

Even if you have less than FRS, you can also withdraw $5k even if this $5k comes from top-up, transfer or grants.

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[77james]

It can be withdrawn if you are above FRS, regardless of where the money come from.

Even if you have less than FRS, you can also withdraw $5k even if this $5k comes from top-up, transfer or grants.

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Ok thanks. Because the statement of topping up of SA account to claim for income tax relief max 7k but cannot withdraw when reach 55 exceeding FRS(or BRS + property)

Will cause a lot of ppl not topping up 7k even with relief and 4percent interest.

Till 55 age. I top up I cannot take back my money only till 65 and in monthly payout doesn’t make sense

 

[crimsontactics]

Ok thanks. Because the statement of topping up of SA account to claim for income tax relief max 7k but cannot withdraw when reach 55 exceeding FRS(or BRS + property)

Will cause a lot of ppl not topping up 7k even with relief and 4percent interest.

Till 55 age. I top up I cannot take back my money only till 65 and in monthly payout doesn’t make sense

This "top up can't withdraw" thing only applies to ppl who want to go BRS.

Look at Gov's perspective. Why would they want to pay 2.5% to 4% pa for your money when SG 10Y Bond yield only 1%? They would very much like you to withdraw as much as possible so that they can save money.

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[77james]

This "top up can't withdraw" thing only applies to ppl who want to go BRS.

Look at Gov's perspective. Why would they want to pay 2.5% to 4% pa for your money when SG 10Y Bond yield only 1%? They would very much like you to withdraw as much as possible so that they can save money.

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Even If BRS + property pledge. exceeding 90.5K.

example if u hit BRS 90.5k using from SA and OA.
like CPF RA at 55 is 110.5k using topping with 20k in SA. Also can withdraw the 20k right

 

[crimsontactics]

Even If BRS + property pledge. exceeding 90.5K.

example if u hit BRS 90.5k using from SA and OA.
like CPF RA at 55 is 110.5k using topping with 20k in SA. Also can withdraw the 20k right

Assuming no top-up or transfer was done, then yes.

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[77james]

Assuming no top-up or transfer was done, then yes.

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i went to read up, once top up using SA, need to deduct top up in SA even
exceed the BRS or FRS. excess then can withdraw

Mean it lock till 65 and 20percent at 65 of RA then can withdraw.

Pro.
4 percent interest in SA
income tax relief 7k

Con
It locked till 65 not 55 for topup.

 

[crimsontactics]

i went to read up, once top up using SA, need to deduct top up in SA even
exceed the BRS or FRS. excess then can withdraw

Mean it lock till 65 and 20percent at 65 of RA then can withdraw.

Pro.
4 percent interest in SA
income tax relief 7k

Con
It locked till 65 not 55 for topup.

To keep things simple:

At age 55,

Anything above FRS can be withdrawn.

Anything up till $5k can be withdrawn.

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[77james]

To keep things simple:

At age 55,

Anything above FRS can be withdrawn.

Anything up till $5k can be withdrawn.

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SA self cash topup need to be deducted according to CPF website after exceeding BRS or FRS. Mean it locked at 55

 

[henrylbh]

Even If BRS + property pledge. exceeding 90.5K.

example if u hit BRS 90.5k using from SA and OA.
like CPF RA at 55 is 110.5k using topping with 20k in SA. Also can withdraw the 20k right

If pre-55 you have BRS of 90.5k in SA/OA and you top up 20k into SA to have 110.5k at age 55 (assuming BRS remains at 90.5k), the top-up of 20k will be in the freezer

 

[crimsontactics]

SA self cash topup need to be deducted according to CPF website after exceeding BRS or FRS. Mean it locked at 55

Doesn't apply for FRS.

I repeated a lot of times.

You go check CPF website again. That is only for BRS

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[77james]

Doesn't apply for FRS.

I repeated a lot of times.

You go check CPF website again. That is only for BRS

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Thanks. Yes the illustration only for BRS

 

[77james]

If pre-55 you have BRS of 90.5k in SA/OA and you top up 20k into SA to have 110.5k at age 55 (assuming BRS remains at 90.5k), the top-up of 20k will be in the freezer

yes correct. BRS top up SA account will be in freezer after 55

 

[77james]

Let say if u reach 55.

u got property.

Total SA and OA maybe 141K
not here and there.

u can only choose BRS + property is it?

Then top up SA will be lock at 55? depends how how much top up if 20k
mean 141k-90.5k-20k = remaining can withdraw?


But SA + OA not hitting FRS 181k.
But SA + OA BRS exceed 90.5k

 

[oceanicmanta]

@77James ... think to avoid confusion, u shld replace (OA + SA) with RA ... bcos u r referring to Withdrawal from RA from 55yo

 

[henrylbh]

To keep things simple:

At age 55,

Anything above FRS can be withdrawn.

Anything up till $5k can be withdrawn.

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Must also differentiate between withdrawal with sufficient property charge anytime from age 55 and lump sum withdrawal at age 65.

 

[mummynew]

if I dont need to depend on CPF life monthly payment and I foresee I will pass at around 70 yo (family history), does it make sense for me to opt for BRS then withdraw whatever I can and use the amount to top up my kids' CPF as pre-death asset distribution?


*I prefer not to give them cash but 'locked up' amounts coz cash they supposed to earn and save themselves.

 

[77james]

@77James ... think to avoid confusion, u shld replace (OA + SA) with RA ... bcos u r referring to Withdrawal from RA from 55yo

ok thanks.

ya correct RA will automatically created when 55