CPF Easy Info Thread. :)

[jay0707]

Updated with the following question:

10. When I withdraw money from my CPF at 55, in what priority will the money be drawn?

1. Interest that has been earned up till the previous month for the year.
2. OA.
3. SA.

 

[crimsontactics]

1. Interest that has been earned up till the previous month for the year.
2. OA.
3. SA.

As in I updated it with the question and answer on the front page.

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[jay0707]

just noticed. my apologies.

 

[crimsontactics]

just noticed. my apologies.

Why apologise?

You never do anything wrong mah...

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[kehyi4]

1. Interest that has been earned up till the previous month for the year.
2. OA.
3. SA.

erm... salah liao. It's always SA first, then OA

 

[crimsontactics]

erm... salah liao. It's always SA first, then OA

Yes.

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[kennethtbh]

exactly , so to decide whether to repay Capital with case or keep is only depending on the interest factor? anything else?
i believe Capital repayment the funds can be withdrawn at 55 like contributed funds not locked / reserved like cash RSTU funds.

u are right.. capital repayment goes into ur OA, which at 55 can be withdrawn if you want. if not, some pple rather just leave there for 2.5% compare to withdraw and put in banks with 0.05% i/r. if you can use it to generate more than 2.5% interest elsewhere then, of cos u would rather have more cash on hand.

 

[crimsontactics]

yes, however the withdrawal will be benchmarked against FRS not BRS?

Yes the FRS.

 

[bladez87]

Question 10 A3. What is sa monies?

 

[crimsontactics]

Question 10 A3. What is sa monies?

Money in your SA?

 

[heymee]

Can somebody help to advise.
Is it possible toTop Up to parents SA account using Cash , if parent is still working and not yet 55 years old and SA has more than SGD180k?

Thank you very much

 

[elnewbie]

Cannot.....

Can somebody help to advise.
Is it possible toTop Up to parents SA account using Cash , if parent is still working and not yet 55 years old and SA has more than SGD180k?

Thank you very much

 

[bladez87]

Why everyone topping up sa if the amount cannot be used for BRS calculation and cannot be withdrawn at 55?

 

[AnTiLooP]

Why everyone topping up sa if the amount cannot be used for BRS calculation and cannot be withdrawn at 55?

1. Tax Relief
2. Higher payouts at the drawn down Age of 65.

 

[crimsontactics]

Why everyone topping up sa if the amount cannot be used for BRS calculation and cannot be withdrawn at 55?

Early top up allows you to hit FRS easily.

Like in the best scenario where your parents top up till FRS for you when you're born, you can expect a windfall at 55!
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[henrylbh]

Early top up allows you to hit FRS easily.

Like in the best scenario where your parents top up till FRS for you when you're born, you can expect a windfall at 55!

It's not exactly a windfall as one is putting in money that's frozen for a very long period of time.

The balance in SA after transfer to RA may far exceed FRS under the present structure, if nothing upset the country and government and policies. The excess in SA is like a safe perpetual bond that give good returns and can be withdrawn anytime in any amount.

 

[crimsontactics]

It's not exactly a windfall as one is putting in money that's frozen for a very long period of time.

The balance in SA after transfer to RA may far exceed FRS under the present structure, if nothing upset the country and government and policies. The excess in SA is like a safe perpetual bond that give good returns and can be withdrawn anytime in any amount.

Yes. Plus it prevents people from using money when they are young, when they are more immature and reckless.

Also prevents laziness cos you can only draw at 55.

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[BBCWatcher]

1. Tax Relief
2. Higher payouts at the drawn down Age of 65.

Or starting as late as age 70. CPF LIFE payouts can start any time within that 5 year time period (age 65 to 70). The longer you wait, the bigger the monthly payout. They are assured for life. You can never live too long and exhaust those payouts.

 

[crimsontactics]

Or starting as late as age 70. CPF LIFE payouts can start any time within that 5 year time period (age 65 to 70). The longer you wait, the bigger the monthly payout. They are assured for life. You can never live too long and exhaust those payouts.

I think those who VC will try to achieve financial independence by 55.

Anyways, retirement is no longer relevant in the 21st century to me.

It's important to change our mindset and adapt so that we are not disappointed.

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[bladez87]

1. Tax Relief
2. Higher payouts at the drawn down Age of 65.

what if you have excesses more than FRS and less than ERS by means of top up? Those excess cannot be withdrawn at 55, can they be withdrawn at 65? What if you pass on before reaching 65?