CPF Easy Info Thread. :)

[BBCWatcher]

What happens at 55, CPFB will transfer 105,600-5000=100,600 to RA., leaving 5k in OA (assuming OA has more than 5k). So u can only withdraw 5k from OA.

No, Retirement Account creation on a member's 55th birthday is a very simple "sweep" up to the Full Retirement Sum. Dollars are drawn first from the member's Special Account then, if the Special Account is below the FRS, from the member's OA.

Withdrawals may then be possible, but there's no reservation of $5,000 in the member's Ordinary Account. The 55th birthday "sweep" stops either when the RA is funded to the Full Retirement Sum or when both SA and OA run are fully drained, whichever comes first.

Before 55yo, RSTU into SA will be able to be withdrawn at 55yo if;
•u met FRS in RA - bal in SA/OA can be withdrawn
•u met BRS(pledged HDB) in RA- bal in SA/ OA can be withdrawn

No, the second part is not quite correct. With a sufficient property pledge or charge, you may be able to withdraw more from your Retirement Account from age 55+, but top ups, government grants, and interest earned stay in your Retirement Account then stream out via CPF LIFE.

It's best to consult the CPF Retirement Booklet, available here, to understand the basics of age 55+ withdrawal rules. And, to repeat, "Who cares?" You should be aspiring to have a decent or better lifetime pension from CPF, at least in this forum which is called "Money Mind," not "Poverty Mind." If you're rational and sensible, you shouldn't be planning to reduce the government's terrific pension offer. Focus on getting your future Retirement Account funded at least to the Full Retirement Sum and having plenty of other wealth (in SA/OA among other places). Don't focus on scenarios involving financial desperation and even poverty.

 

[maple96]

No, Retirement Account creation on a member's 55th birthday is a very simple "sweep" up to the Full Retirement Sum. Dollars are drawn first from the member's Special Account then, if the Special Account is below the FRS, from the member's OA.

Withdrawals may then be possible, but there's no reservation of $5,000 in the member's Ordinary Account. The 55th birthday "sweep" stops either when the RA is funded to the Full Retirement Sum or when both SA and OA run are fully drained, whichever comes first.

Dun talk rubbish with me!

Go read the CPFB website, including the rule I quoted in my previous post!

He is talking about FRS cannot be met! U have serious comprehension problems

And go correct your answers to ChinTuaKi compared to mine

 

[dullthings]

Cal3135, BBC,

In this case, what does the following paragraph mean, when it mentions “...excluding.... top-ups made under the retirement sum topping up scheme”?

“ (ii) Any Retirement Account savings (excluding interest earned, any government grants received and top-ups made under the Retirement Sum Topping-up Scheme) above the Basic Retirement Sum, if you own a property with remaining lease that can last you to at least 95 years old.”

https://www.cpf.gov.sg/members/FAQ/...avings from 55&folderid=12854&ajfaqid=2189257

 

[a4973]

No, Retirement Account creation on a member's 55th birthday is a very simple "sweep" up to the Full Retirement Sum. Dollars are drawn first from the member's Special Account then, if the Special Account is below the FRS, from the member's OA.

Withdrawals may then be possible, but there's no reservation of $5,000 in the member's Ordinary Account. The 55th birthday "sweep" stops either when the RA is funded to the Full Retirement Sum or when both SA and OA run are fully drained, whichever comes first.

hi Money Minders,
in this respect, maple96 is right.
let me update my shielding event.
i had shielded my SA less mandatory minimum 40K & also did not pay back my OA funds used for property like i originally intended to do before 55 as i was still evaluating my options so in the month of my 55th just couple of days before the actual BD my account stood at :

OA : $136,xxx.xx
SA : $40,xxx.xx

on the morning of my BD, my account stood at :

OA $5000.xx
SA $0
RA $172,xxx.xx

and in the My Messages section under Retirement, it shows i am able to withdraw $5000.xx.
i just did a OA to RA Transfer after that.

 

[maple96]

i just did a OA to RA Transfer after that.

Oops, I would prefer to topup with cash, especially if u can get tax relief, and leave OA to earn 2.5% (altho u can pay back your housing usage).

U did not try shielding OA as well

 

[a4973]

Oops, I would prefer to topup with cash, especially if u can get tax relief, and leave OA to earn 2.5% (altho u can pay back your housing usage).

U did not try shielding OA as well

i was just focused on the SA that i did not think about any "enhanced" shielding techniques.
but for the sake of discussion i do understand your 1st point but what is the purpose of "U did not try shielding OA as well" ?

 

[cal3135]

dullthings,

My mistake on RSTU - likely can’t be withdraw as cash.

Example from cpf web;

Cal3135, BBC,

In this case, what does the following paragraph mean, when it mentions “...excluding.... top-ups made under the retirement sum topping up scheme”?

“ (ii) Any Retirement Account savings (excluding interest earned, any government grants received and top-ups made under the Retirement Sum Topping-up Scheme) above the Basic Retirement Sum, if you own a property with remaining lease that can last you to at least 95 years old.”

https://www.cpf.gov.sg/members/FAQ/...avings from 55&folderid=12854&ajfaqid=2189257

🍎xsmax HardwareZone Forums app

 

[a4973]

I hate to do this to u, uncle henry, u also have comprehension problems

He just hit 55, we are talking about after 55 liao hor

yah so can only OA to RA not OA to SA, so sad.

 

[henrylbh]

I hate to do this to u, uncle henry, u also have comprehension problems

He just hit 55, we are talking about after 55 liao hor

Ya stepped on the wrong path

Post deleted.

 

[maple96]

Ya stepped on the wrong path

Post deleted.

I also deleted. Share why he should also consider shielding OA at 54+ before he hit 55?

(I going shopping liao, will share another time )

 

[henrylbh]

I also deleted. Share why he should also consider shielding OA at 54+ before he hit 55?

(I going shopping liao, will share another time )

Thanks. Logging off, I going JB soon

 

[dork32]

What happens at 55, CPFB will transfer 105,600-5000=100,600 to RA., leaving 5k in OA (assuming OA has more than 5k). So u can only withdraw 5k from OA.

wow i did not know that. i tot the full 105600 will be transferred and you are allowed to withdraw that 5k from the ra.

it seems that you are correct. me and bbc is wrong.

the thing is wat is wrong by being wrong. no one is perfect. you will be wrong sometime or other. just admit that you are not right, learn something and move on.

 

[dork32]

Oops, I would prefer to topup with cash, especially if u can get tax relief, and leave OA to earn 2.5% (altho u can pay back your housing usage).

U did not try shielding OA as well

you are really smart. stupid me did not think of that.

or withdraw 5k from oa.

top up ra with 5k withdrawn. same thing happened but siam 5k income tax

 

[a4973]

you are really smart. stupid me did not think of that.

or withdraw 5k from oa.

top up ra with 5k withdrawn. same thing happened but siam 5k income tax

hi dork32
mind sharing the purpose of shielding OA?
thanks

 

[dork32]

hi dork32
mind sharing the purpose of shielding OA?
thanks

i tink maple mention shielding of oa as a joke.

if you can invest in sa, oa is even easier to invest. just invest out the 7k from oa. at 55 they clear out oa and sa. your 7k comes back to your oa when you are 55 + 1 day old. withdraw this 7k and plough it back to your ra to earn tax relief.

not really sure wat he means.

 

[woof]

The thing about SHB is very strange. I wrote a couple of emails to HDB about it asking how to go about applying it. When my aunt was selecting her flat, there wasn't any mention about it.

The replies given by HDB was also unclear. I figured that SHB will only apply or be given only after she sells the flat and gets the flexi flat, around that period of time. In this case, I believe she still can choose not to get it.

A couple of years ago, I help my aunt with this - in her case, she sold a 3-room flat and moved into a HDB studio apartment.

For SHB, on the final HDB resale appointment (Resale Completion Appointment), HDB will ask if you are interested in SHB. You will be given a form to fill up, and told that you will be contacted by an officer later (within 2 weeks). I think there's only 1 guy that's dealing with this. In the meantime, she received the full sum of money from the resale appointment.

We had to wait for the officer to call us, make an appointment to see him, fill up forms and wait for the processing. This takes another 2-3 weeks.
My aunt then received an approval letter, informing her to post in a cheque to CPF for the money to for RA top up. The mail came with a self-addressed envelope.

After that, in another 1-2 weeks, she received a check for the SHB. So the SHB is pretty much cash.

 

[maple96]

i tink maple mention shielding of oa as a joke.

if you can invest in sa, oa is even easier to invest. just invest out the 7k from oa. at 55 they clear out oa and sa. your 7k comes back to your oa when you are 55 + 1 day old. withdraw this 7k and plough it back to your ra to earn tax relief.

not really sure wat he means.

I am serious! I have been pondering whether to write to CPFB to confirm the loopholes. But I think is pretty confirmed.

Read it here "How to stop CPFB from transferring your OA as well?"

 

[dork32]

I am serious! I have been pondering whether to write to CPFB to confirm the loopholes. But I think is pretty confirmed.

Read it here "How to stop CPFB from transferring your OA as well?"

this is not very relevant to me.

the thing is i use my oa for property. i still owe my oa 300k. anytime i have money, i can put 300k into my oa if i want to

this is meant for the super rich.

if i were to do shielding, i would me investing in close to 1 mil of oa.

 

[ChinTuaKi]

Your Retirement Account will be created and funded up to the Full Retirement Sum on your 55th birthday, whereupon any remaining SA and OA dollars can be withdrawn.

In my view this is a “Who cares?” issue because nobody in this forum (Money Mind) should be aspiring to have less than the Full Retirement Sum at age 55, which isn’t actually very much. Indeed, at age 55 hopefully you’re flush with wealth and topping up your Retirement Account to the Enhanced Retirement Sum.

And where is my invitation to any of the champagne fueled age 55 CPF withdrawal parties? I’m still wondering.


Maybe. If she’s below age 55, if her SA hasn’t reached the FRS, if her total worldwide income is quite limited, if you still have taxable income (can get some tax relief), if you haven’t already used all $7,000 of SA/RA top up tax relief available when you top up qualified family members’ accounts, AND if you haven’t reached the $80,000 annual tax relief limit, then you can get some tax relief.


At age 55, correct. (There’s another potential withdrawal opportunity at age 65.)


In your scenario, no.


The age 60 v. 55 part doesn’t matter for these purposes. Voluntary top ups to her RA are still voluntary top ups, so (apparently — it’s a little unclear above the FRS) they must be paid out via CPF LIFE. There’s still the 20% age 65 withdrawal opportunity, though.

For simplicity purposes, just assume that top ups go straight to higher age 65+ lifelong pension income, and very attractively so. Higher lifelong pension income is wonderful, of course, and it’s never lavish at these levels, so I’m not sure why so much time and mental energy is spent in Money Mind worrying about withdrawals to reduce one’s own pension. A higher pension faster means you can more safely tap other financial resources at particular ages.

Pls see my comments in red above, supported by the following CPF rules:

CPF rules on withdrawals at 55:

https://www.cpf.gov.sg/members/FAQ/...avings from 55&folderid=12854&ajfaqid=2189257

Between $5,000 and your Full Retirement Sum
(i) $5,000,
and
(ii) Any Retirement Account savings (excluding interest earned, any government grants received and top-ups made under the Retirement Sum Topping-up Scheme) above*your Basic Retirement Sum, if you own a property with remaining lease that can last you to at least 95 years old.

thank you all for the replies....much clearer now

 

[maple96]

this is not very relevant to me.

the thing is i use my oa for property. i still owe my oa 300k. anytime i have money, i can put 300k into my oa if i want to

this is meant for the super rich.

if i were to do shielding, i would me investing in close to 1 mil of oa.

Of course people must use their common-sense to decide when it is appropriate to do it.

Ultra rich people like u with 1m in OA dun need to play this game, u are even richer than Skenny

To each his own!