CPF Easy Info Thread. :)

[BBCWatcher]

ok thanks. another question.. old scheme monthly payout is based on 20years upto age 85.

Well, it depends on how far back you want to go in history. (Actually, in the recent past, payouts usually lasted longer than 20 years thanks to bonus interest.)

if we delay payout till 70.. will it still use 20 years payout OR based on ending age 85?
this does affect monthly payout amount.. anyone knows?

Absent any interventions (more funds added at particular late points in time), payouts started at age 70 should end at about his 90th birthday. The CPF Board has recently recalibrated classic Retirement Sum Scheme payouts to end then, typically a few years earlier than prior to the recalibration.

Of course it depends on his health, and there's a long time before he'll even make his decision. But men in average or better health who are alive at age 70 have a rather high statistical likelihood of living past their 90th birthdays, even well past. There are also 3 CPF LIFE payout plan choices also available to him, and he can make that decision now or even any time until about age 79.8 (at least a couple months before his 80th birthday is the absolute deadline). RSS payouts from age 70 onward reduce the Retirement Account funding principal available for a later CPF LIFE switch, of course. All CPF LIFE payout plans eliminate the risk of retirement income from CPF dropping to zero at age 90+.

 

[henrylbh]

hi all.. my dad on old retirement sum scheme.. he is 67 today, haven start payout, probably wait till 70.

want to ask, how much can we top up for his RA? is it to the retirement sum when he is 55 OR retirement sum of 181k based on today 2020?

Current year's FRS is 181k and ERS is 271.5k and they are set to increase annually.

Anyone age 55 and above can anytime top up RA to the prevailing ERS less the amount when RA was created at age 55 and less any top-up since age 55. It does not matter whether he has started withdrawal or not as it does not affect the limit that one can top up.

 

[henrylbh]

ok thanks. another question.. old scheme monthly payout is based on 20years upto age 85.

if we delay payout till 70.. will it still use 20 years payout OR based on ending age 85?
this does affect monthly payout amount.. anyone knows?

He can only defer payout to age 70 when payout will start automatically.

Whatever the RA balance at age 70, in normal case, will be paid over the duration of 20 years from PEA. In his case, payout will be over the remaining duration period of 15 years to about age 85. But the actual payout will last slightly longer than age 85 due to the extra interest. Of course, starting payout at 70 will be higher than starting at 65.

 

[henrylbh]

My kid is 8 years old. Any recommended amount which one should topup for kids MA/SA account so that power compounding will help when kids grow up?

If you have the means and never ever going to need the money for yourself or your kid come what may, then go for the max of both accounts and keep your fingers crossed

 

[henrylbh]

Guys. Wanna ask.
If now I am 27. I got 80k in SA. 0 in OA and 6k in MA.

How much do i need to have to meet FRS at my 55?

How much FRS will be in 28 years' time when you will be 55, nobody knows, not even the government can tell. But most would guess the current FRS of 181k will grow annually by about 3%. Whether 55 will be the future age to determine the retirement sum, nobody can be wiser.

Since you asked how much you need, does it mean you are willing to freeze some money to try to meet the present FRS as much as your can? If yes, try to go all out to max SA or the earlier you max it, the better for you as the annual interest from there and contribution from work should be more than enough to take care of further FRS.

 

[henrylbh]

Want to ask. If let say above 70. Still can top up to RA to get interest?

Yes as long as you are still alive.

 

[yokine3a]

Hi all, wish to seek expert advice here. I am not familiar with BRS as I am aiming FRS.

Assuming FRS is 181000 & BRS is 90500. A guy has made 90500 mandatory contribution and 90500 cash top up via RSTU. With property pledge for BRS, can this person withdraw 90500 at 65? Thanks very much.

 

[BBCWatcher]

Assuming FRS is 181000 & BRS is 90500. A guy has made 90500 mandatory contribution and 90500 cash top up via RSTU. With property pledge for BRS, can this person withdraw 90500 at 65?

Probably not. It might be possible if the member has topped up his/her CPF Retirement Account substantially above the Full Retirement Sum.

 

[kehyi4]

Hi all, wish to seek expert advice here. I am not familiar with BRS as I am aiming FRS.

Assuming FRS is 181000 & BRS is 90500. A guy has made 90500 mandatory contribution and 90500 cash top up via RSTU. With property pledge for BRS, can this person withdraw 90500 at 65? Thanks very much.

as far as we understand it, the answer is NO

this is because:
Amt that can be withdrawn under BRS = Total Amt - (BRS + RSTU-cash-top-up)

Here's an illustration from CPF FAQ to show how it works:
Illustration_of_topup_monies_in_RA.pdf

Note that in the illustration, Member B cannot withdraw anything, despite having a balance that exceeds BRS. The diagrams on pg 2 show it very neatly

 

[SBC]

Yes as long as you are still alive.

Can still keep $ in CPF after RIP?

 

[reddevil0728]

Can still keep $ in CPF after RIP?

not the dead person's cpf

 

[Okenba]

as far as we understand it, the answer is NO

this is because:
Amt that can be withdrawn under BRS = Total Amt - (BRS + RSTU-cash-top-up)

Here's an illustration from CPF FAQ to show how it works:
Illustration_of_topup_monies_in_RA.pdf

Note that in the illustration, Member B cannot withdraw anything, despite having a balance that exceeds BRS. The diagrams on pg 2 show it very neatly

Curious. Are we able to see the amount that we have RSTU and therefore cannot withdraw? I don't think it is flagged at this point? So we will only know when we hit 55?

 

[BBCWatcher]

Can still keep $ in CPF after RIP?

not the dead person's cpf

Actually, surviving nominees can leave a deceased CPF member's funds at CPF. Here's how it works, assuming the deceased member was a Singaporean citizen or PR at the time of death and the death occurred in Singapore (known to the police, hospital, whatever):

1. The member needs to make a CPF nomination, which he/she should do anyway.

2. Upon the member's death, CPF automatically gets notice of the death from other governmental authorities in Singapore. CPF then notifies the nominee(s) how to make a claim.

3. The nominee(s) simply take(s) no action.

4. CPF stops paying bonus interest immediately upon receiving news of the member's death.

5. CPF continues paying 2.5% (OA) and 4.0% interest rates (MA/SA/RA) on residual balances for 6 months after the member's death.

6. After 6 months, CPF transfers all remaining MA/SA/RA funds (plus accrued interest) to the deceased member's OA.

7. After 7 years, the deceased member's OA balance stops earning any interest.

CPF explains these details here. But the bottom line is that if the nominee(s) wish(es) to keep a deceased member's funds parked at CPF, it's possible -- and with rather attractive interest at least for 6 months, although nowadays 2.5% interest is looking pretty attractive, too.

 

[kehyi4]

Curious. Are we able to see the amount that we have RSTU and therefore cannot withdraw? I don't think it is flagged at this point? So we will only know when we hit 55?

"Are we able to see the amount that we have RSTU?"
Totally YES

Login to my cpf online and on the My Statement page, you'll find this sentence just above "Section B": Part of your account has been reserved. View details.

Click on "details" and there you should see:

"Amount Reserved (as at 10 Oct 2020)
You have $xxx.xx in your Special Account under the Retirement Sum Topping Up Scheme. This comprises the top-up amount and any interest earned, and has been reserved to be transferred to your Retirement Account when you turn 55."

 

[decibel.]

"Are we able to see the amount that we have RSTU?"
Totally YES

Login to my cpf online and on the My Statement page, you'll find this sentence just above "Section B": Part of your account has been reserved. View details.

Click on "details" and there you should see:

"Amount Reserved (as at 10 Oct 2020)
You have $xxx.xx in your Special Account under the Retirement Sum Topping Up Scheme. This comprises the top-up amount and any interest earned, and has been reserved to be transferred to your Retirement Account when you turn 55."

What if we use all SA to buy into a temporary bond before 55, how does this reserved sum gets to RA? Supposed we do top up of 14k in total and then before 55 we use all SA amount to invest and left OA for RA set up.

Sent from HUAWEI VOG-L29 using GAGT

 

[ralliart12]

...Login to my cpf online and on the My Statement page, you'll find this sentence just above "Section B": Part of your account has been reserved. View details.

Click on "details" and there you should see:

"Amount Reserved (as at 10 Oct 2020)
You have $xxx.xx in your Special Account under the Retirement Sum Topping Up Scheme. This comprises the top-up amount and any interest earned, and has been reserved to be transferred to your Retirement Account when you turn 55."

how come I see "Please call the CPF Call Centre at 1800 - 227 1188 for more information."?

 

[BBCWatcher]

What if we use all SA to buy into a temporary bond before 55, how does this reserved sum gets to RA?

That’s nicknamed “Special Account shielding,” and it’s simple: you’re not allowed to push cash RSTU (plus accrued interest) into the CPF Investment Scheme.

Supposed we do top up of 14k in total and then before 55 we use all SA amount to invest and left OA for RA set up.

See above, and this amount wouldn’t matter anyway since you have to leave at least $40,000 behind in your Special Account, in addition to the cash RSTU funds (plus accrued interest).

 

[Project_Xco]

how about RTSU via OA>SA? can it be used for SA shielding at 55?

 

[SBC]

"Are we able to see the amount that we have RSTU?"
Totally YES

Login to my cpf online and on the My Statement page, you'll find this sentence just above "Section B": Part of your account has been reserved. View details.

Click on "details" and there you should see:

"Amount Reserved (as at 10 Oct 2020)
You have $xxx.xx in your Special Account under the Retirement Sum Topping Up Scheme. This comprises the top-up amount and any interest earned, and has been reserved to be transferred to your Retirement Account when you turn 55."

Could not find this option. Tried mobile & on notebook.

 

[babyrobo]

Is the RSTU amount taken into consideration when forming the BRS/FRS or excluded (ie BRS/FRS + RSTU)?