CPF Easy Info Thread. :)

[henrylbh]

It's 55. She has less than 60k when she turned 55, so i think she's still on RSS unless she opts for CPF Life.

https://www.cpf.gov.sg/Members/Schem...ement/cpf-life

You will automatically be included in CPF LIFE to enjoy lifelong payouts if:
- You are a Singapore Citizen or Permanent Resident born in 1958 or after;
- have at least $60,000 in your Retirement Account six months before you reach your payout eligibility age (PEA).

If you are a Singaporean Citizen or Permanent Resident who does not meet the above requirements, you can still apply to join CPF LIFE and start receiving lifelong income, at any time between your payout eligibility age and one month before you turn 80 years old.

Its 65. But it doesn't matter cause her birthday is in 57, so yes she is on RSS unless and until she opts to join CPF Life.

Not sure whether you are confusing him with the above quote from CPF webpage.

His aunt is definitely under RSS, unless she opts for CPF Life.

Nevertheless her payout eligibility age is 65 since she is born in 1957. Those before her, the payout eligibility age is 60 or 62 depending on year of birth.

If she choose to receive SHB, she will be forced to join CPF Life.

Those under RSS and opted for CPF Life in earlier years went through a messy transition. That time, they were initially given a choice of 7 or 11 Life plans

 

[henrylbh]

It's 55. She has less than 60k when she turned 55, so i think she's still on RSS unless she opts for CPF Life.

She's living alone in a 5-room flat and still working. hardly any savings so really depending on the flat sales. No intention to leave for her children, maybe a few grand for her grandchildren.

What's SSS?

No need to think. She is definitely under RSS. If she to receive the SHB when getting the flexi flat, she will be forced to dump a sum of money into RA.

If I were her, I will forgo the flexi flat or I may downgrade to a 3rm flat or 2rm flat with flexibility to sell the flat in future if need fund for old age home or rent out a room for living expenses The proceeds from downgrading need to be tailored according to her long term plan. Not wise to dump all into RA since she got no other assets.

If her whole life working contributions to CPF is less than 70k by 55, she will be entitled to SSS based on the flat she own from 65.

 

[maple96]

What is SSS (Silver Support Scheme), who qualifies, how to apply?

https://www.silversupport.gov.sg/Resources/FAQs#top_faq_03

From CPF website:

https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/silver-support-scheme

 

[henrylbh]

I think the key differences are how much you get monthly and how long it lasts. How long it lasts is easy. CPF Life is for Life. RSS is (very recently) until 90 years old.

How much you get is more complicated. For CPF Life it depends on how much you put in, and which plan you opt for.

For RSS, I assume it is whatever you have in RA, projected with interest until 90yo, and divided through the years.

If the payouts are not too different for both schemes, I see little reason to opt for RSS over CPF life. *shrug*

She missed some of the accumulation phase from 55 till the time when she starts to put money into her RA.

If she opt for CPF Life, there is no transparency on the amount that she will get monthly, but certainly much lesser than RSS (since she is a she) which will be paid over 20 years (to about 85) or slightly later due to the extra and additional extra interest. Under RSS, the difference on payout compared to CPF Life, if not needed, can be recycled into RA or placed as VC for more flexibility since she got not much savings for emergency use.

 

[maple96]

She missed some of the accumulation phase from 55 till the time when she starts to put money into her RA.

If she opt for CPF Life, there is no transparency on the amount that she will get monthly, but certainly much lesser than RSS (since she is a she) which will be paid over 20 years (to about 85) or slightly later due to the extra and additional extra interest. Under RSS, the difference on payout compared to CPF Life, if not needed, can be recycled into RA or placed as VC for more flexibility since she got not much savings for emergency use.

Uncle Henry is the expert on RSS. He "created an escalating payout" with his father's RA when he was alive. "Pei fu"

 

[henrylbh]

That's history Nobody would care No more RSS.

 

[maple96]

That's history Nobody would care No more RSS.

History/experience is the most valuable/best confirmation, u know I do can already

 

[BBCWatcher]

So the $20,000 in free Silver Housing Bonus money from the government doesn't matter, Henry? Your recommendation is to skip that?

 

[henrylbh]

Ask yourself. Who don't want free money?

 

[BBCWatcher]

Ask yourself. Who don't want free money?

Yes, exactly. That one (the Silver Housing Bonus) is among the very best free money offers the government has -- heck of a great deal.

 

[henrylbh]

So the $20,000 in free Silver Housing Bonus money from the government doesn't matter, Henry? Your recommendation is to skip that?

Ask yourself. Who don't want free money?

Yes, exactly. That one (the Silver Housing Bonus) is among the very best free money offers the government has -- heck of a great deal.

I got no answer, unless there is only one road to Rome.

Best answer is ask own self and answer own self

 

[Emo_Rhino]

If cpf special account is full, any tax deduction if I TOP up with cash?

 

[nautilus]

If cpf special account is full, any tax deduction if I TOP up with cash?

If I’m not wrong, you cannot top up SA under RSTU scheme for tax relief once FRS is met.

 

[lifeafter41]

If cpf special account is full, any tax deduction if I TOP up with cash?

Still can go for Voluntary Contribution, subject to annual CPF contribution of 37,400, but no tax relief.

 

[Okenba]

If cpf special account is full, any tax deduction if I TOP up with cash?

If MA is not full, you can top up your own MA for tax relief I think.
Next year MA limit increased to 60k. So you can quickly top it up at start of the year.

 

[crimsontactics]

If MA is not full, you can top up your own MA for tax relief I think.
Next year MA limit increased to 60k. So you can quickly top it up at start of the year.

No need chiong MA bah...

Cannot take out unless dead or sick...

Sent from Samsung SM-N960F using GAGT

 

[lifeafter41]

No need chiong MA bah...

Cannot take out unless dead or sick...

Sent from Samsung SM-N960F using GAGT

Firstly it’s for tax relief.
Second, it’s at MA at max, after topping up, the interest will just overflow to either SA or OA.

 

[Value.Matrix]

That's history Nobody would care No more RSS.

Hey, then what's the difference between AMP and RSS?

I was looking to get BRS, then maybe choose standard or escalating, then do a diversification instead. Still playing with the mathematical model though.

 

[Value.Matrix]

You might have missed the Silver Housing Bonus (SHB) reference upthread. The SHB provides up to a whopping $20,000 in free money from the government. But you only get the SHB if you choose CPF LIFE. Of course that's a good deal; it's a stonking big pile of free money.

I see it as a bonus $20,000 that is what the government would have take (20% premiums of RA) for CPF LIFE. only better... if your cpf life is below $100k and whether can take the $20,000 or not (with interest), its the same imho.

 

[maple96]

I see it as a bonus $20,000 that is what the government would have take (20% premiums of RA) for CPF LIFE. only better... if your cpf life is below $100k and whether can take the $20,000 or not (with interest), its the same imho.

I have been pondering over this. Why govt give u the bait to join CPF Life?

Some joined CPF Life @55 because of the join bonus. CPFB would have eaten more than the join bonus when your funds are moved into the Pool and if the member die before 65 pea, interest of 4%+1+1 compounded eaten up

What about this 20k SHB? If u choose Basic Plan, it is only interest on the 20% max premium. If u choose Standard or Escalating, it would be more.

What about the cost of 2-room flexi? Value for money? Is that 20k factored in? If u pay 150k, with no or low resale value, is as good as your flat is worth 150+20? I am no property flipping expert, just thinking out loud

But being able to enjoy the 20k cash upfront is no joke of course, to lose it later is a different matter, for someone who needs the money now rather than the future. No need to waste time on this until the rules are confirmed. There is a possibility she still have a choice until she sell/buy the existing/new flat.