CPF Easy Info Thread. :)

[culture_counter]

Many with no money to top up ones also say that.
Are you one of them or one of those who demand 'return my cpf'?

CPF life annuity is a good system, provided garmen remains credible and honours it.

 

[Merg91]

If it goes down, you can forget about everything you have here.
Better make sure it works.

CPF life annuity is a good system, provided garmen remains credible and honours it.

 

[culture_counter]

If it goes down, you can forget about everything you have here.
Better make sure it works.

CPF life annuity guaranteed by AAA rated govt. So should be safe.

 

[a4973]

Hi all, I'm turning 55 soon, also going to be affected by the reduction of Citi maxigain interest. I'm leaning towards closing the whole maxigain account and either do capital repayment to my cpf OA or wait for RA creation then top up to ERS. I have hit FRS & am aware of the shield. Would like to know the pros and cons of capital repayment vs top up to ERS. Please guide, thank you all.

 

[Value.Matrix]

Hi all, I'm turning 55 soon, also going to be affected by the reduction of Citi maxigain interest. I'm leaning towards closing the whole maxigain account and either do capital repayment to my cpf OA or wait for RA creation then top up to ERS. I have hit FRS & am aware of the shield. Would like to know the pros and cons of capital repayment vs top up to ERS. Please guide, thank you all.

Think of Accured interest as a gateway to park your funds (assuming you did not do SA shield hack), which is not limited by the annual $37,740.00 cpf limit. This only gains 2.5% per year interest (the interest can be withdrawn yearly).

ERS will be factored into CPF LIfe and depending on the plan you choose, more/less bequest. But by age 90, you have to think of money thrown into ERS = 0. simple as that. Age 80 = 0 bequest for Standard/Escalating plan chosen (unless you want hand itchy go contribute more for 4% interest on additional funds into RA).

Additional TLDR which does not answer your question: However, if you did SA shield hack, then OA will be drawn last. I would rather park my funds in an annuity (if i can't have the mind/lost the knowledge/nimbleness to invest when i am old), or to REITS and other dividend paying stocks which can be done like the following:

(1) CPF LIFE
(2) Private annuity
(3) Income funds which include:
Bond Funds / REITS / Dividend Stocks
(4) A small amount of maybe 10% to 20% into value/growth stock to hedge inflation.

 

[maple96]

CPF Retirement Sum Scheme to be capped at age 90 for higher payouts

https://www.businesstimes.com.sg/go...eme-to-be-capped-at-age-90-for-higher-payouts

 

[henrylbh]

CPF Retirement Sum Scheme to be capped at age 90 for higher payouts

https://www.businesstimes.com.sg/go...eme-to-be-capped-at-age-90-for-higher-payouts

as expected. No complain no action.

 

[SKenny]

CPF Retirement Sum Scheme to be capped at age 90 for higher payouts

https://www.businesstimes.com.sg/go...eme-to-be-capped-at-age-90-for-higher-payouts

It make sense to align all the age limits to 90. Current AMP is also at 90.

 

[chrisloh65]

What is AMP?

I remember based on some people's calculation here, your own money in CPF Life would finish using up only in 93 (before insurance kicks in), so may be time to increase CPF Life payout to align their own money to finish at 90 too?

It make sense to align all the age limits to 90. Current AMP is also at 90.

 

[Value.Matrix]

What is AMP?

I remember based on some people's calculation here, your own money in CPF Life would finish using up only in 93 (before insurance kicks in), so may be time to increase CPF Life payout to align their own money to finish at 90 too?

CPF would not really do that. Isn't that removing their buffer for "more folks living pass 90"? If not why risk pool? Go negative meh?

 

[henrylbh]

I remember based on some people's calculation here, your own money in CPF Life would finish using up only in 93 (before insurance kicks in), so may be time to increase CPF Life payout to align their own money to finish at 90 too?

Finished by 90 and don't die how? You want sign agreement to put you to sleep by 90?

 

[dork32]

I remember based on some people's calculation here, your own money in CPF Life would finish using up only in 93 (before insurance kicks in), so may be time to increase CPF Life payout to align their own money to finish at 90 too?

for retirement sum, at 90, you got no money left in cpf. if you have no money to eat then that is your problem.

for cpf life basic, if your cpf money runs out, cpf continues to pay till you die. It is only fair that your money should run out only at a later date. 92 or 93 seems quite fair to me.

 

[maple96]

I remember based on some people's calculation here, your own money in CPF Life would finish using up only in 93 (before insurance kicks in), so may be time to increase CPF Life payout to align their own money to finish at 90 too?

Finished by 90 and don't die how? You want sign agreement to put you to sleep by 90?

Becasue someone said money has no value to dead people, so use up all before u die

I already shared I have my golden goose to continue to lay golden eggs for me until I die, then give the golden goose to my bene, cannot “eat up” all the monies before I die leh, money still got value even I die or "half dead", we are different

Dead people don't get any value from money. It simply doesn't matter to the member's direct benefit how much residual is left. .

 

[chiokcc]

If both myself and spouse each does $7k cash top-up to my parents' RA, will both of us enjoy income tax deduction??

 

[highsulphur]

If both myself and spouse each does $7k cash top-up to my parents' RA, will both of us enjoy income tax deduction??

Top up to the same person then only one person will get the deduction. Don't forget the person receiving the top up must earn below a certain income

 

[henrylbh]

Top up to the same person then only one person will get the deduction. Don't forget the person receiving the top up must earn below a certain income

Where you got the info that person receiving .......?

 

[henrylbh]

If both myself and spouse each does $7k cash top-up to my parents' RA, will both of us enjoy income tax deduction??

If I remember correctly, only one can claim 7k relief or split the amount among yourself.

 

[highsulphur]

Where you got the info that person receiving .......?

https://www.iras.gov.sg/irashome/Individuals/Locals/Working-Out-Your-Taxes/Deductions-for-Individuals/CPF-Cash-Top-up-Relief/

There used to be a income threshold for parents but seem like only apply to spouse and siblings

 

[henrylbh]

https://www.iras.gov.sg/irashome/Individuals/Locals/Working-Out-Your-Taxes/Deductions-for-Individuals/CPF-Cash-Top-up-Relief/

There used to be a income threshold for parents but seem like only apply to spouse and siblings

I don't remember there was income threshold for parents. The threshold was for claiming parent's relief and this threshold is still applicable.

 

[highsulphur]

I don't remember there was income threshold for parents. The threshold was for claiming parent's relief and this threshold is still applicable.

You might be right. Sorry for the wrong information. I got confused with parent tax claim.

So I guess it is possible for the same parent to receive top up from 2 children and both children to claim deduction for the top up? The only condition seems to be that the SA or RA of the parent must be below FRS.