CPF Easy Info Thread. :)

[henrylbh]

I already told him before and thank for the reply. From what I see, he wanted to delay till 70. If he withdraw at 65, he is now 64.It won't be 1000. Only at 70, then it will be 1000.

He bought insurance already 100% govt hospital covered. He bought the plan before 2018.

He got enough cash on hand. The bigger issue is the property. The accrued interest is rising.

If he top up till FRS and he sell the property, does it mean he don't have to pay accrued interest?

Funny that people are concerned with accrued interest. Generally, you may get less cash back in selling the flat because of the accrued interest. Is it so much different if you have to put cash upfront into the flat to avoid getting less cash at end when selling, interest excepted.

 

[dork32]

I already told him before and thank for the reply. From what I see, he wanted to delay till 70. If he withdraw at 65, he is now 64.It won't be 1000. Only at 70, then it will be 1000.

He bought insurance already 100% govt hospital covered. He bought the plan before 2018.

He got enough cash on hand. The bigger issue is the property. The accrued interest is rising.

If he top up till FRS and he sell the property, does it mean he don't have to pay accrued interest?

err.. actually this post is used to hit henry. this is because this is a very general reply. it is not answering your question of accrued interest in housing.

first important is accrued interest is paid to yourself and not to cpf. eg it is paid from your bank account to your cpf account. it is still your own money. it is like transferring money from dbs to ocbc.

second thing is all this can be withdrawn if you have frs. but henry made a valid point. it is better to check how far you are away from frs. if what henry say is true, at 64, dad's ra would be earning quite a lot of interest already. he could be quite far away from his frs. then again frs 9 years ago would be quite low (140k?). with your 150k ra you should have enough to cover the frs.

with regards to paying of accrued interest, yes, your dad does not have to pay back anything if he already has frs.

i just want to share my experience. my condo was shared between me and my mom. some years back, she "sold" her portion to me. i then bought a resale hdb under her name. during the process, i was told to return 300k (principal and interest) to her cpf oa for her sales of condo to me. i immediately withdraw this 300k to pay for her hdb. i dont have that many 300k lying around. this 300k is crucial in the payment of her hdb.

 

[henrylbh]

Even if one has meet the cohort FRS, generally all principal sum used plus accrued interest will still go back OA. If FRS is met at 55 or shortfall made good sybseqyently, all balances, except MA can be withdrawn any time in any amount. For info, no need to make good shortfall,if any, in MA.

 

[dork32]

Funny that people are concerned with accrued interest. Generally, you may get less cash back in selling the flat because of the accrued interest. Is it so much different if you have to put cash upfront into the flat to avoid getting less cash at end when selling, interest excepted.

wat if dad is not buying another flat?

in dad's case, it is not so different.

but you are younger than 55, then there may be a difference. especially if you need the cash to pay ah long

 

[dork32]

Even if one has meet the cohort FRS, generally all principal sum used plus accrued interest will still go back OA. If FRS is met at 55, all balances, except MA can be withdrawn any time in any amount. For info, no need to make good shortfall,if any, in MA.

"i just want to share my experience. my condo was shared between me and my mom. some years back, she "sold" her portion to me. i then bought a resale hdb under her name. during the process, i was told to return 300k (principal and interest) to her cpf oa for her sales of condo to me. i immediately withdraw this 300k to pay for her hdb. i dont have that many 300k lying around. this 300k is crucial in the payment of her hdb."

this is exactly what i mentioned. it is almost the same as no need to refund back to oa if you have frs after 55.

 

[dork32]

Funny that people are concerned with accrued interest.

it is not funny. it is just that people do not understand how the thing work. she is not the only one that is worried about accrued interest.

many have mentioned that the system is so complicated. you mentioned that i am experienced but i do not know that interest earned in ra do not count towards frs (still not sure if this is true).

but i can assure you this. interest earns in the sa do count towards frs.

 

[henrylbh]

wat if dad is not buying another flat?

in dad's case, it is not so different.

but you are younger than 55, then there may be a difference. especially if you need the cash to pay ah long

There will be too many IFs.

In her father's case specifically, he can withdraw whatever in his cpf after making good the shortfall in FRS in RA. If there is sufficient cash component in his RA, he even use part of RA to pay for the next property. Don't question me

 

[dork32]

There will be too many IFs.

In her father's case specifically, he can withdraw whatever in his cpf after making good the shortfall in FRS in RA. If there is sufficient cash component in his RA, he even use part of RA to pay for the next property. Don't question me

isnt that wat i have mentioned?

and who is the one that mentioned about cash down for another flat. notice i did not mention this point at all in my reply. because it is relevant in the question.

 

[doratch]

This CPF issue is really intriguing and interesting though.

I suggest to call the CPF Board if you guys have any queries or make a face to face appointment with them.

I called CPF Board myself and managed to have my queries answered.

I shall call them when I have more queries again.

 

[SBC]

This CPF issue is really intriguing and interesting though.

I suggest to call the CPF Board if you guys have any queries or make a face to face appointment with them.

I called CPF Board myself and managed to have my queries answered.

I shall call them when I have more queries again.

Very true.

Good to have many informal sources on forum.
When in doubts for key topic/issue, is best to probe for official answer.

 

[doratch]

Very true.

Good to have many informal sources on forum.
When in doubts for key topic/issue, is best to probe for official answer.

Yes.

I called them to ask regarding FRS and Voluntary Contribution. The customer service officer was pretty helpful.

 

[dork32]

This CPF issue is really intriguing and interesting though.

I suggest to call the CPF Board if you guys have any queries or make a face to face appointment with them.

I called CPF Board myself and managed to have my queries answered.

I shall call them when I have more queries again.

i have seen blur kings employed at the cpf. the cpf system is so complex that the staff themselves blur up.

eg1. friend A wants to refund cpf housing withdrawal. he is unemployed but have a huge stash of cash. he want to put money into the oa such that it can earn better interest while using it to pay for the installment of the loan. the cpf staff gave him a vc form almost half of refund went into his sa account, which could not be used to service the loan.

eg2. friend B wants to do a vc for wife. wife is working part time. employer contribution is very small. he has a large room to do vc for wife. but when he spoke to the cpf people, he said that the wife already had frs in the sa so cannot vc.

we have these monkeys working for cpf. if you are unsure about the system and you sway sway meet this idiots, you would be misled by them.

for myself, i would rather scour the cpf site for the answer. this is when someone made a statement that i dont agree, i always ask them where in the cpf site is this info located.

i believe many of the cpf customer service also do not know what is in their own website.

 

[dork32]

I am actually considered the more informed group already. The ill informed one still think they do not have to put back to OA after the flat is sold

i also consider myself very well informed. but you can see there are details here and there which i may have misunderstood.

 

[doratch]

i have seen blur kings employed at the cpf. the cpf system is so complex that the staff themselves blur up.

eg1. friend A wants to refund cpf housing withdrawal. he is unemployed but have a huge stash of cash. he want to put money into the oa such that it can earn better interest while using it to pay for the installment of the loan. the cpf staff gave him a vc form almost half of refund went into his sa account, which could not be used to service the loan.

eg2. friend B wants to do a vc for wife. wife is working part time. employer contribution is very small. he has a large room to do vc for wife. but when he spoke to the cpf people, he said that the wife already had frs in the sa so cannot vc.

we have these monkeys working for cpf. if you are unsure about the system and you sway sway meet this idiots, you would be misled by them.

for myself, i would rather scour the cpf site for the answer. this is when someone made a statement that i dont agree, i always ask them where in the cpf site is this info located.

i believe many of the cpf customer service also do not know what is in their own website.

Oh I see.

I guess I am lucky to meet one who knows the stuff.

I told the officer that after I hit the FRS, what can I do to further increase the amount in SA and she told me to do VC. She even taught me how to navigate the CPF website and offered to help me check the maximum amount that I can do VC.

I am planning to do VC since I have already hit the FRS.

I also plan to make a voluntary refund of the housing amount withdrawn from CPF OA after I finished paying the hdb loan.

 

[dork32]

Oh I see.

I guess I am lucky to meet one who knows the stuff.

I told the officer that after I hit the FRS, what can I do to further increase the amount in SA and she told me to do VC. She even taught me how to navigate the CPF website and offered to help me check the maximum amount that I can do VC.

I am planning to do VC since I have already hit the FRS.

I also plan to make a voluntary refund of the housing amount withdrawn from CPF OA after I finished paying the hdb loan.

good for you. i believe that there are good and bad staff in all organizations. you may be lucky to have met the good ones. my friends are just unlucky, i guess.

 

[maple96]

This is the place where people create their own CPF rules mixed with their own opinions, trying to become the next "expert"

Always do your own due diligence! Learn to differentiate whether those guys are talking CPF rules or dictating/imposing their own opinions on others

It is your money, your future, trust CPFB only, ie the CPF rules, not people's opinions. I always get written reply from CPF for whatever that impacts my money, my future!

we have these monkeys working for cpf. if you are unsure about the system and you sway sway meet this idiots, you would be misled by them.

This CPF issue is really intriguing and interesting though.

I suggest to call the CPF Board if you guys have any queries or make a face to face appointment with them.

I called CPF Board myself and managed to have my queries answered.

I shall call them when I have more queries again.

doratch set a very good example, u are so right, “your money, your future”, do your own due diligence!

It is better to seek confirmation from CPFB, than let this d guy here m and i u around with no recourse!

 

[dork32]

doratch set a very good example, u are so right, “your money, your future”, do your own due diligence!

It is better to seek confirmation from CPFB, than let this d guy here m and i u around with no recourse!

yes, it is better to ask cpf. but why are so many people coming in here to ask questions?

it is because the rules cpf set are complex, we come to reconfirm our understanding of the rules.

 

[henrylbh]

One more question regarding cpf.

Can I ask when will my parents be able to opt for basic plan, standard plan etc? Will they auto put them to standard. My parent is 65 this year. And 64 respectively.

If they bo chap and do nothing, their payout will auto commence at age 70 under the earlier under RSS.

 

[BBCWatcher]

I check with the hotline. They mentioned that my parents can opt in anytime from 65-80 wor. Mean at 75 they still can opt in cpf life?

Yes, up to as late as a couple months before their 80th birthdays. That’s the deadline.

In that case, is there a difference if they opt in at 67 or 75?

Yes. If they opt into CPF LIFE at age 67 then they get a reasonably steady monthly income for life, either approximately fixed or escalating (the Escalating Plan, the inflation fighting plan). If they opt in at age 75 then they’ve started classic Retirement Sum Scheme payouts no later than age 70, then they get knocked down to a lower monthly payout from age 75 when they switch to CPF LIFE to reflect the fact their Retirement Accounts have been substantially withdrawn and to guarantee payouts for life.

In other words, do they want a smooth payout stream (or even escalating)? If so, start payouts when they need them (or at age 70, the latest allowed) and with CPF LIFE. However, there are occasional circumstances when starting with RSS then switching to CPF LIFE (strictly by age 79.8) might make some sense. One example is if they’re expecting a reliable and decent bequest before age 80. Then they might start with RSS, switch to CPF LIFE before age 80, and use some or all of the bequest to top up their Retirement Accounts. As another example, if either or both are in poor health and definitely not going to live well into their 80s or beyond then the classic RSS is a good bet.

 

[theking_smen]

Hi guys...I'm planning to top up my parent's RA in the future with my cpf... As i most probably wont be purchasing any property any time soon... Understand that without a property I have to meet the FRS before I can make any transfer. what makes up the FRS ? It is a combination of SA+MA or OA+SA+MA? This is where i am confused at the moment...