CPF Easy Info Thread. :)

[TickTechToe]

Dont forget the OA will add onto the SA when reached 55 to form the RA.. if the top up amount plus the RA exceed the ERS... the top up amount would go where? Does the CPF payout increase?

You prompted a nice question in my head (although i believe 99% of the population will not hit this), Can RA be above ERS due to this rule too? If you top up your childs SA (assuming you are freaking rich lah), and since the amount growing is at 4%, would it ever hit above ERS?

 

[henrylbh]

third,

it says that cpf life does not pay interest. wrong!. escalating and standard does not pay interest. basic does.

you see all the misinformation? you still want to read monkey's essay?

Misinformation on those words in bold?

 

[Value.Matrix]

Misinformation on those words in bold?

Definitely not.

See this. https://www.cpf.gov.sg/members/FAQ/...group=CPF+LIFE&ajfaqid=2186377&folderid=11663

When you join the CPF LIFE Basic Plan, a portion of your Retirement Account (RA) savings will be deducted for the annuity premium. This can range from 10% to 20%, from age 65 to 70. The actual percentage will depend on your age and gender. We will inform you on the amount deducted when your policy is issued. The premium deducted will be paid into the Lifelong Income Fund. The rest of your RA savings will stay in your RA. Both your premium and RA savings will continue to earn interest which will be paid to Lifelong Income Fund and RA respectively.

Good luck for everyone. Salute to Dork32

Also why CPF LIFE Basic payouts drop. Same Reason

 

[henrylbh]

Definitely not.

See this. https://www.cpf.gov.sg/members/FAQ/...group=CPF+LIFE&ajfaqid=2186377&folderid=11663

When you join the CPF LIFE Basic Plan, a portion of your Retirement Account (RA) savings will be deducted for the annuity premium. This can range from 10% to 20%, from age 65 to 70. The actual percentage will depend on your age and gender. We will inform you on the amount deducted when your policy is issued. The premium deducted will be paid into the Lifelong Income Fund. The rest of your RA savings will stay in your RA. Both your premium and RA savings will continue to earn interest which will be paid to Lifelong Income Fund and RA respectively.

Good luck for everyone. Salute to Dork32

Also why CPF LIFE Basic payouts drop. Same Reason

like him, you choose to read what you want?

 

[Value.Matrix]

Dont forget the OA will add onto the SA when reached 55 to form the RA.. if the top up amount plus the RA exceed the ERS... the top up amount would go where? Does the CPF payout increase?

You should check directly with CPF Board. But If i am not wrong, the money in OA will stay in OA. So if its in SA, excess will stay in their respective accounts.

But always remember, the order is SA > OA > cash.

 

[Value.Matrix]

like him, you choose to read what you want?

Ok maybe for the FULL information which makes sense to everyone.

CPF LIFE pays interest but the interest DOES NOT go to your RA account. It goes to the LIFELONG fund. Which cannot be bequest to your nominations.

Does this work?

To a layman. I choose basic, 100% of my RA interest remains in my RA.

If i choose standard and escalating, 0% of my CPF LIFE interest goes into my RA.

Edited for further clarity.

 

[henrylbh]

Ok maybe for the FULL information which makes sense to everyone.

CPF LIFE pays interest but the interest DOES NOT go to your RA account. It goes to the LIFELONG fund which you can touch only if you are above 91 years old. But cannot be bequest to your nomations.

Does this work?

To a layman. I choose basic, 100% of my RA interest remains in my RA. but 10 to 20% of the amount set into CPF LIFE aside doesn't earn interest into my RA.

If i choose standard and escalating, 0% of my CPF LIFE interest goes into my RA.

that's better except for those words in bold.

 

[Value.Matrix]

that's better except for those words in bold.

If you have a full view, do post it out. Thanks. i know you are damn good if you can point out.

 

[henrylbh]

Ok maybe for the FULL information which makes sense to everyone.

CPF LIFE pays interest but the interest DOES NOT go to your RA account. It goes to the LIFELONG fund which you can touch only if you are above 91 years old. But cannot be bequest to your nomations.

Does this work?

To a layman. I choose basic, 100% of my RA interest remains in my RA. but 10 to 20% of the amount set into CPF LIFE aside doesn't earn interest into my RA.

If i choose standard and escalating, 0% of my CPF LIFE interest goes into my RA.

If you have a full view, do post it out. Thanks. i know you are damn good if you can point out.

Just remove those words you added on your own would be OK. That's misinformation

Your savings used to join CPF LIFE (i.e. annuity premiums) will continue to earn interest like your Retirement Account (RA) savings, which is currently at 4% per year. The interest earned on the annuity premiums will be paid to the Lifelong Income Fund and pooled together with the interest of all CPF LIFE participants. The interest will be paid to you as part of your monthly payouts for as long as you live.


If you choose basic, 4% interest on annuity premium go into LIF. Extra interest and additional extra interest will be paid into your RA.

 

[Value.Matrix]

Just remove those words you added on your own would be OK. That's misinformation

Your savings used to join CPF LIFE (i.e. annuity premiums) will continue to earn interest like your Retirement Account (RA) savings, which is currently at 4% per year. The interest earned on the annuity premiums will be paid to the Lifelong Income Fund and pooled together with the interest of all CPF LIFE participants. The interest will be paid to you as part of your monthly payouts for as long as you live.


If you choose basic, 4% interest on annuity premium go into LIF. Extra interest and additional extra interest will be paid into your RA.

Actually, can I check with you what are the extra interest and additional extra interest come from? I am pleasantly surprise because I didn't see it inside CPF website.

 

[henrylbh]

Actually, can I check with you what are the extra interest and additional extra interest come from? I am pleasantly surprise because I didn't see it inside CPF website.

Check with dork32.

 

[intime]

4% interest rate extend again to end of next year...

 

[dork32]

Misinformation on those words in bold?

ok loh. standard and escalating pays interest. this interest goes into the lifelong income fund and not your personal sa or ra account.

who cares if it is paying interest, if the interest does not come to you.

 

[dork32]

Actually, can I check with you what are the extra interest and additional extra interest come from? I am pleasantly surprise because I didn't see it inside CPF website.

some people just like to nit pick lah.

you have extra interest of 1% for the first 60k. this amounts to 600 per year.

this 60k can be made up of max 20k from oa and max of 60k from sa +ma

eg oa = 10k, sa+oa = 100k extra interest = 600
oa = 100k, sa+ra = 10k, extra interest = 300

super ++ special extra vote for me interest is only if you are above 55. they give addtional 1% on the first 30k. this amounts to 300

both this interest is goes into ra, or sa.

 

[dork32]

Just remove those words you added on your own would be OK. That's misinformation

Your savings used to join CPF LIFE (i.e. annuity premiums) will continue to earn interest like your Retirement Account (RA) savings, which is currently at 4% per year. The interest earned on the annuity premiums will be paid to the Lifelong Income Fund and pooled together with the interest of all CPF LIFE participants. The interest will be paid to you as part of your monthly payouts for as long as you live.


If you choose basic, 4% interest on annuity premium go into LIF. Extra interest and additional extra interest will be paid into your RA.

yeah, you believe in the lifelong income fund. i dont. it is crab to me.

if you have frs now at 55, you will have 250k+ at 65.
if you draw down at 65, the diff between basic and escalating is 130 per month or 1430 a year.
at 4% 250k, it is 10k per year.
you lose 10k of interest and you get back 1430. i certainly do not believe in this crab.

but to be fair to standard, if you refuse to die, you continue to get this 130 more per month till you die. if you can reach 80. you would have exhausted your annuity, but you continue to draw the same amount. this is despite you no longer contributing to the fund.

 

[dork32]

yeah, you believe in the lifelong income fund. i dont. it is crab to me.

if you have frs now at 55, you will have 250k+ at 65.
if you draw down at 65, the diff between basic and escalating is 130 per month or 1430 a year.
at 4% 250k, it is 10k per year.
you lose 10k of interest and you get back 1430. i certainly do not believe in this crab.

but to be fair to standard, if you refuse to die, you continue to get this 130 more per month till you die. if you can reach 80. you would have exhausted your annuity, but you continue to draw the same amount. this is despite you no longer contributing to the fund.

sorry lousy example.
you lose the full 10k per year. this is because both of it, you are just drawing from your own money.

and cpf site is writing rubbish. the increase payout is not due to the lifelong income fund. you are just withdrawing from you own principal. lifelong income fund only kicks in when you burned out your principal.

 

[dork32]

J The interest will be paid to you as part of your monthly payouts for as long as you live.

sorry this is misinformation. it should be written this :

cpf will take all your interest in the lifelong income fund if you die before 80. it will be given to people that lived beyond 80 as monthly payout.

but if you can live beyond 80, then interest from the losers that die will fund your old age.

how cpf comes up with this 130 per month is none of your business. we, scholars, run cpf. you losers will not understand the maths behind.

 

[henrylbh]

third,

it says that cpf life does not pay interest. wrong!. escalating and standard does not pay interest. basic does.

you see all the misinformation? you still want to read monkey's essay?

Misinformation on those words in bold?

ok loh. standard and escalating pays interest. this interest goes into the lifelong income fund and not your personal sa or ra account.

who cares if it is paying interest, if the interest does not come to you.

Just say it as it is. No need to add opinions/words (thereby giving misinformation) as we are not debating the merit of the issue.

 

[dork32]

Just say it as it is. No need to add opinions/words (thereby giving misinformation) as we are not debating the merit of the issue.

i feel it is misinformation on the part of cpf. words are carefully phrased such that they hide the real meaning so as not to lose votes.

i love this phrase, "the interest is given out as monthly payout throughout your life".

i have 100k in cpf life standard
i withdraw 10k as payout.
my 4k interest goes to lifelong income fund.
i die after 1 year and my kids get 90k. which part of the payout is from the lifelong income fund? is this not govt propaganda?

this is not a matter of opinion. this is misinformation of the side of cpf. this is why people misunderstood many of its policies.

 

[dork32]

sorry this is misinformation. it should be written this :

cpf will take all your interest in the lifelong income fund if you die before 80. it will be given to people that lived beyond 80 as monthly payout.

but if you can live beyond 80, then interest from the losers that die will fund your old age.

how cpf comes up with this 130 per month is none of your business. we, scholars, run cpf. you losers will not understand the maths behind.

which part of my post is wrong in reality? i post like that who does not understand? cpf makes this sort of crazy statement who can understand