CPF Easy Info Thread. :)

[crimsontactics]

will there be interest credited to our RA after 65?

understand that after 65, the interest gained would be channeled to the cpg lifelong income fund instead of RA

Yes.

Sent from OPPO F1s using GAGT

 

[crimsontactics]

Yes for basic plan.

No for standard plan.

Choose wisely...

Both also have.

Sent from OPPO F1s using GAGT

 

[badsector]

can sic where to find the info sir?

i cant find in cpf website

from their FAQ

Q Where will the extra interest be paid to after I join CPF LIFE?

A If you have chosen the CPF LIFE Standard Plan or CPF LIFE Escalating Plan (available from January 2018), the extra interest will be paid into the Lifelong Income Fund. By paying the extra interest into the Lifelong Income Fund, you will be able to enjoy a more stable payout for the rest of your life. The extra interest will be pooled, and factored into your monthly CPF LIFE payouts.

If you have chosen the CPF LIFE Basic Plan, we will pay the extra interest earned into your Retirement Account and pay it to you in the year it is earned as part of your monthly CPF LIFE payout. When your combined balances fall below $60,000, the extra interest will reduce. This reduces your monthly CPF LIFE payouts gradually.

 

[crimsontactics]

So how much is the yield of this 'saving account without atm card' ? Only 2.5% ?

I have more than enough SA & MA for FRS .

Up to 6%.

Sent from OPPO F1s using GAGT

 

[elnewbie]

See post 383.

Standard plan - interest doesn't go to you. It goes into a Pool. Which means the coffeeshop drunkard drinking ABC stout everday also get to enjoy your bonus...

Basic plan- interest goes to YOUR RA.

Both also have.

Sent from OPPO F1s using GAGT

 

[dork32]

See post 383.

Standard plan - interest doesn't go to you. It goes into a Pool. Which means the coffeeshop drunkard drinking ABC stout everday also get to enjoy your bonus...

Basic plan- interest goes to YOUR RA.

"who say got no interest? you just dont understand the concept."

this is what some idiots told me. when i mention standard got no interest.

 

[elnewbie]

Yep...those same idiots are apparently happy to have their hard earned interest go into the Life Pool which is paid out to the coffeshop drunkard, who uses the extra money to buy beer and later piss out the beer in the HDB lift.

Next time u step into the HDB lift and smell urine, thats where your interest goes if u select the Standard plan.

"who say got no interest? you just dont understand the concept."

this is what some idiots told me. when i mention standard got no interest.

 

[henrylbh]

will there be interest credited to our RA after 65?

understand that after 65, the interest gained would be channeled to the cpg lifelong income fund instead of RA

Yes for basic plan.

No for standard plan.

Choose wisely...

Both also have.

Sent from OPPO F1s using GAGT

See post 383.

Standard plan - interest doesn't go to you. It goes into a Pool. Which means the coffeeshop drunkard drinking ABC stout everday also get to enjoy your bonus...

Basic plan- interest goes to YOUR RA.

I am a little confused.

When one chooses CPF Life Standard, RA will be emptied as annuity premium. For CPF Life basic, part of RA will be used to pay the annuity premium.

The "annuity premium" will continue to earn interest and the interest will be paid to LIF.

Only the 'extra' interest under CPF Life Standard will go to LIF while that for CPF Life Basic will remain in the RA.

The confusing part is "If you have chosen the CPF LIFE Basic Plan, we will pay the extra interest earned into your Retirement Account and pay it to you in the year it is earned as part of your monthly CPF LIFE payout. When your combined balances fall below $60,000, the extra interest will reduce. This reduces your monthly CPF LIFE payouts gradually". Something is amissed in the explanation?

 

[elnewbie]

Nothing is amiss..

When u choose the BASIC plan, 10% of your RA balance or FRS, whichever is lower, will go into the Life pool.

Then from age 65 to 90, your monthly payout comes from your RA. At age 90, your RA balance reduce to zero and henceforth, all future payouts will be paid from the 10% you had put into the Life pool at age 65.

This is why, when you die early under the Basic plan, your bequest amount is much higher than compared to Standard plan.

Good luck to those who choose Standard plan and die the next day...your dependents will get very little.

I am a little confused.

When one chooses CPF Life Standard, RA will be emptied as annuity premium. For CPF Life basic, part of RA will be used to pay the annuity premium.

The "annuity premium" will continue to earn interest and the interest will be paid to LIF.

Only the 'extra' interest under CPF Life Standard will go to LIF while that for CPF Life Basic will remain in the RA.

The confusing part is "If you have chosen the CPF LIFE Basic Plan, we will pay the extra interest earned into your Retirement Account and pay it to you in the year it is earned as part of your monthly CPF LIFE payout. When your combined balances fall below $60,000, the extra interest will reduce. This reduces your monthly CPF LIFE payouts gradually". Something is amissed in the explanation?

 

[dork32]

Good luck to those who choose Standard plan and die the next day...your dependents will get very little.

actually if you die one day after 65, it may be better to get the standard plan

if you buy basic, you lose that 10% deduction straight away. if you die 10 years later, the 10% amortised over 10 years is not so bad. on top of that you are earning interest.

if you buy standard, the entire sum is transferred into annuity. you die the next day, everything is given back to you. if you die 10 years later, your annuity will be earning interest for 10 years, but you are not getting a cent from it. there will be nothing much left of your annuity.

i may be wrong in that you get back the entire sum. the lousy cpf life calculator does not tell you the bequest amount when you die at 66

 

[Wood41]

If you are talking about doing voluntary contributions to OA, SA and MA when your SA has already hit the prevailing FRS, you can if your yearly mandatory contributions do not hit the annual contribution cap. I know because this is something I do.

http://singaporeanstocksinvestor.blogspot.sg/2015/01/retirement-ak-is-buying-12-year-tenor.html?m=1

 

[deadravel]

Hi all, im just starting work, im just wondering anything i should do for CPF early on so i can benefit later in life (easier HDB repayment, etc) when i got older.

any advice for starters??

 

[badsector]

Hi all, im just starting work, im just wondering anything i should do for CPF early on so i can benefit later in life (easier HDB repayment, etc) when i got older.

any advice for starters??

work hard. aim for monthly 6k salary.
if you can..top up to CPF annual limit. currently $37,740

 

[henrylbh]

Nothing is amiss..

When u choose the BASIC plan, 10% of your RA balance or FRS, whichever is lower, will go into the Life pool.

Then from age 65 to 90, your monthly payout comes from your RA. At age 90, your RA balance reduce to zero and henceforth, all future payouts will be paid from the 10% you had put into the Life pool at age 65.

This is why, when you die early under the Basic plan, your bequest amount is much higher than compared to Standard plan.

Good luck to those who choose Standard plan and die the next day...your dependents will get very little.

Don't you find the last para I wrote a little strange?

 

[elnewbie]

No..why ?

If you are referring to the part about the combined balances falling below $60k, that is quite acceptable right ?

You should not be entitled to extra interest if your balance falls below $60k.

Am i missing something here ??

Don't you find the last para I wrote a little strange?

 

[kehyi4]

Also, CPF never promised the CPF Life payouts will forever never drop. If there is less in RA earning less interest, then the payout would logically be reduced

 

[Sambuca78]

Very confuse on the retirement account.

My mama (68yo) is thinking of putting her 50k cash into retirement account due to the 6% interest, will she be able to withdraw partial or full amount whenever she want?

Basically she just wanna take this retirement account like a saving account. Thanks.

 

[elnewbie]

Nope. Anything that goes into RA gets paid out in CPF Life payments.

Alternative for her is to do a VC contribution but most of the money will end up in OA or MA...if MA is full, then such funds will be redirected back to OA.

My mama is 70 yrs old and thats what she's doing..VC.

3.5 % still better than nothing..

Very confuse on the retirement account.

My mama (68yo) is thinking of putting her 50k cash into retirement account due to the 6% interest, will she be able to withdraw partial or full amount whenever she want?

Basically she just wanna take this retirement account like a saving account. Thanks.

 

[Sambuca78]

Nope. Anything that goes into RA gets paid out in CPF Life payments.

Alternative for her is to do a VC contribution but most of the money will end up in OA or MA.

My mama is 70 yrs old and thats what she's doing..VC.

Sorry, i very noob on this, what is VC and how it work? many thanks.

 

[elnewbie]

Just ask the CPF for VC form 1. Its called Voluntary contribution..

Max per year is $37,700. So your mama will need to split into 2 payments...