CPF Easy Info Thread. :)

[maple96]

OK , I understand the first part...
But the second part - you are no longer required to topup MA to BHS (if MA not at BHS) before u can withdraw

What is BHS ?
Please help to explain more...Thank you.

From CPF website:

Q What is the Basic Healthcare Sum?
A The Basic Healthcare Sum (BHS) is the estimated savings you need for your basic subsidised healthcare needs in old age.

Q What is the minimum balance that I need to set aside in my MediSave Account?
A There is no minimum amount you need to set aside in your MediSave Account (MA). Part of your working contributions will be allocated to your MA until your balance reaches the Basic Healthcare Sum (BHS). Amounts above the BHS will be transferred to your other CPF accounts, depending on your age.

Q Do I have to top up my MediSave Account to the Basic Healthcare Sum if I withdraw my CPF savings from age 55?
A You are not required to top up your MediSave Account when you withdraw your CPF savings.

Read more here https://www.cpf.gov.sg/members/FAQ/schemes/healthcare/medisave?ajfaqid=faq2189347

 

[heymee]

OK , I understand when I reached 65 , my BHS will be fixed ....no more increase ....

But looking at the rate added to the BHS each year about 4k....now is 57K
So when I reached 65 , my BHS sum limit is 100kplus....

OMG... this will eat into my OA/SA saving.....

How do I retire.....??

 

[heymee]

I forsee myself

At 55 ERS will be at least 300k
At 65 BHS will be 100k plus....

OMG....how do I retire.... I do not want to work beyond 60....
So unhappy

Why do I need so much $$$ in BHS???

 

[heymee]

I forsee myself

At 55 ERS will be at least 300k
At 65 BHS will be 100k plus....

OMG....how do I retire.... I do not want to work beyond 60....
So unhappy

Why do I need so much $$$ in BHS???

I forsee , my BHS will only benefit my next of kins when I am gone...

 

[heymee]

A good read...

https://just2me.com/2019/05/30/cpf-life-or-retirement-sum-scheme/

 

[ocs_woodlands]

A good read...

https://just2me.com/2019/05/30/cpf-life-or-retirement-sum-scheme/

Stopped reading when blogger does not even know what LIFE stands for...

LIFE = Lifelong Income For the Elderly

 

[Merg91]

Too bad Sinkies live one of the longest in the world.
Very few elderly can run away from some chronic illnesses or even deadly cancers.
And your healthcare bills will shoot up.
So don't worry too much if your medisave is 'excessive'.

What's so bad to leave a bit more bequest if
you can't make it?

You may think FRS is a lot now....but your kopitiam kopi could be $3 /simple cai png $10 in 20 years time.

 

[henrylbh]

Medisave won't be excessive since it is limited to BHS at 65.

But it may be excessive if medical claims are limited.

I projected that my BHS would be depleted (without any medical claims) by premium on medical insurance that meets my needs, if CPF allows premium to be fully deducted from my MA.

 

[dork32]

A good read...

https://just2me.com/2019/05/30/cpf-life-or-retirement-sum-scheme/

this is wat i meant, any monkeys can start write and post on the web. So much misinformation. rubbish calculations.

it posted by someone that know nuts abt cpf life and maths.

 

[dork32]

first thing the yield.

the yield is not 6%, 7%

you draw money your down own money. you call that yield?

it is i have 100k in my bank account. this year i decided to happy happy withdraw 50k. Wah my yield in my bank account is 50%!!!

 

[dork32]

second, it is recommending standard because it has the highest yield

standard give a bit more every month but does not earn interest into your principal. there is a strike off vs basic. it is totally not mentioned.

 

[dork32]

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?

 

[Value.Matrix]

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?

You dive deep. There is a lot of terms and conditions you really need to go through in the CPF website itself. Even asking the customer service. Nice catch on all those.

 

[dork32]

You dive deep. There is a lot of terms and conditions you really need to go through in the CPF website itself. Even asking the customer service. Nice catch on all those.

i already mentioned many times. dont waste time on the customer service at cpf. they give you as much trash as wat the article post.

the rules are set by the policymakers. it is executed by the rank and file employees. many times they do not know wat the rules really are.

you see people like maple. he always quotes from the cpf website. the website can be trusted. how many customer service really knows what is on their website.

how many of us really knows wat is posted on our own companies website.

 

[TickTechToe]

Anyone top up your SA using cash and enjoy the tax relief? I read in cpf website, the topup amount, interest and gov grant cannot be withdraw at 55 even if the amount is above the FRS which is puzzling to me... so the top up, interest earn and gov grant does not count towards the FRS?!

 

[TickTechToe]

I see the pdf from the cpf website... the top up amount cannot be withdraw

https://www.cpf.gov.sg/Assets/membe...Vaw1L4cSWh3zO-pG3a2pPDCVm&cshid=1568943790169

Anyone top up your SA using cash and enjoy the tax relief? I read in cpf website, the topup amount, interest and gov grant cannot be withdraw at 55 even if the amount is above the FRS which is puzzling to me... so the top up, interest earn and gov grant does not count towards the FRS?!

 

[Hysteri]

Have you considered the cpf payout, interest accrued, tax savings from the voluntary top up?

 

[BBCWatcher]

Anyone top up your SA using cash and enjoy the tax relief? I read in cpf website, the topup amount, interest and gov grant cannot be withdraw at 55 even if the amount is above the FRS which is puzzling to me...

Once your Special Account has reached the Full Retirement Sum, no more top ups are permitted.

....I'm still waiting for my invitations to all the champagne infused, CPF funded 55th birthday bashes that so many people seem to be planning. Where's my invitation?

 

[Value.Matrix]

I see the pdf from the cpf website... the top up amount cannot be withdraw

https://www.cpf.gov.sg/Assets/membe...Vaw1L4cSWh3zO-pG3a2pPDCVm&cshid=1568943790169

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?

Edit: Btw, its for RA account, and not SA account. You scared me. SA is withdrawal above FRS.

 

[Value.Matrix]

I see the pdf from the cpf website... the top up amount cannot be withdraw

https://www.cpf.gov.sg/Assets/membe...Vaw1L4cSWh3zO-pG3a2pPDCVm&cshid=1568943790169

I read from this blog, and this came out. https://heartlandboy.com/money-withdraw-from-your-cpf-at-55/

from CPF website

You can withdraw your Special Account and Ordinary Account savings after setting aside your Full Retirement Sum in your Retirement Account. The Full Retirement Sum can be set aside fully with cash, or with cash (i.e. at least the Basic Retirement Sum) and property.

So what do you think?

FRS = limit liao. the rest can be withdrawn. Only if you want BRS, then the top up monies cannot be considered.