CPF Easy Info Thread. :)

[dork32]

We don’t know if there’s mortgage insurance, but the homeowner is 73 years old and may have dementia. Would you like to revise and extend your remarks?

hdb loan confirm got mortgage insurance

 

[dork32]

Where you get that notion?

maybe i did not phrase it correctly. his dad does not have enough cash to enjoy the benefit.

 

[candy crush]

Thanks everyone for the help

I will go read up those information on CPF website so I wun be asking too much stupid question

Thanks again

 

[dork32]

At age 73, you will get about $7 per month for $1000, whether under the RSS scheme (which pays out until age 90) or CPF Life scheme (which pays out for life).

again half info is given. this is probably comparing rss and cpf life standard. one important point that was left out was bequest. rss gives a bequest all the way till 90. for cpf life the bequest runs out at 85.

 

[dork32]

Thanks everyone for the help

I will go read up those information on CPF website so I wun be asking too much stupid question

Thanks again

i dont think you are asking stupid questions. these are real questions with regards to your situation.

it is good that you gain more infor from cpf site. problem is it is all over the place. it is not easy to integrate the knowledge. only you can choose the best solution for yourself.

 

[dork32]

Need some helpful advice on what i can do with my 69 year-old mother's CPF. She has no financial commitments, and is generally healthy other than having the elderly 3 Highs. Her CPF Life is only paying out about $400 per month

OA $99k
SA $2.4k
MA $31k
RA $42k

again incomplete info. so very difficult to say which is best.

she can transfer oa to ra
advantage is
higher payout,
higher interest
higher bequest
disadvantage is.
less cash on hand.

she can transfer oa to ma to hit bhs.
higher interest.
others will say that healthcare needs taken care off but this is wrong. cash withdrawn from oa also can be used for medical bills.
higher bequest.
less cash on hand.

she can withdraw a few thousand from oa every year and go for holiday.

one time withdraw all the oa and buy a nice car.

do nothing
more disposable cash. less payout, less bequest.

what is your mom's objective or mission statement? that will help choose the better option

 

[dork32]

Hi CPF experts,

Currently I'm not working. Don't foresee will start work again in near future. I've few questions regarding CPF :

1.) If @ 55yrs after FRS I still have some money left in OA & SA. But my MA
has below BHS. Will the amount that I can withdraw need to deduct the
difference in BHS?
2.) Any one know the interest rates for OA & SA in details after transfer to RA?
3.) As I'm not working, if I decide to left some money OA. But understand that
BHS will increase yearly till 65yrs. Will it affect the amount that I can
withdraw later maybe before 65yrs?

Have a Nice Day. Thanks!

1. no need to top up to bhs b4 you can withdraw.
2. oa 2.5% sa 4% (no change)
3. no need to top up to bhs. withdrawal not affected.

bhs is relevant only when you continue working.

 

[tangent314]

Need some helpful advice on what i can do with my 69 year-old mother's CPF. She has no financial commitments, and is generally healthy other than having the elderly 3 Highs. Her CPF Life is only paying out about $400 per month

OA $99k
SA $2.4k
MA $31k
RA $42k

If there is room for you (or your siblings) to top up her RA with cash that will be tax deductible up to $7000. It is also a good idea to top up her MA to BHS first. After which, she, your siblings and/or you can also transfer from OA account to her RA account.

With all the money remaining in the RA account, she can then purchase "CPF Life Additional Annuity" to boost her CPF Life payout amount. This works especially well for a healthy elder.

This whole process can be done through CPF online portal, but since it's rather complicated, you may want to make an appointment with a CPF officer together with your mum (possibly together with other siblings that are interested in contributing).

 

[semiret]

1. no need to top up to bhs b4 you can withdraw.
2. oa 2.5% sa 4% (no change)
3. no need to top up to bhs. withdrawal not affected.

bhs is relevant only when you continue working.

Many thanks!

 

[henrylbh]

At age 73, you will get about $7 per month for $1000, whether under the RSS scheme (which pays out until age 90) or CPF Life scheme (which pays out for life).

Where you get info that monthly payout is about $7 for $1,000.

Besides, common sense tells me that payout cannot be same with RSS and CPFL for $1,000 in RA.

 

[henrylbh]

How come ?

then how I get tax relief?

Tax relief up to 7k for top-up to his RA with cash.

 

[henrylbh]

…... eg putting money into ra will result in a payout the next month. his oa and sa is live and can be withdrawn any time. there is one problem, he may not have the ability to enjoy the benefits.

Where you get that notion?

maybe i did not phrase it correctly. his dad does not have enough cash to enjoy the benefit.

How else can you phrase 'his OA and sa is live and can be withdrawn any time'?

Also putting money into RA will result in a payout the next month?

My father's RA was exhausted and remained zero for many years. Then one day, I decided to top up his RA for tax relief. But there was no payout while his RA grew with accumulated interest. Six years later, I did another topping up and his monthly payout re-started only when I requested for monthly payout on his behalf.

 

[henrylbh]

Her CPF Life is only paying out about $400 per month

OA $99k
SA $2.4k
MA $31k
RA $42k

again incomplete info. so very difficult to say which is best.

she can transfer oa to ra
advantage is
higher payout,
higher interest
higher bequest
disadvantage is.
less cash on hand.

she can transfer oa to ma to hit bhs.
higher interest.
others will say that healthcare needs taken care off but this is wrong. cash withdrawn from oa also can be used for medical bills.
higher bequest.
less cash on hand.

she can withdraw a few thousand from oa every year and go for holiday.

one time withdraw all the oa and buy a nice car.

do nothing
more disposable cash. less payout, less bequest.

what is your mom's objective or mission statement? that will help choose the better option

Quite true that info is incomplete. Yet you are giving several wrong info on what could be done

 

[henrylbh]

Her CPF Life is only paying out about $400 per month

OA $99k
SA $2.4k
MA $31k
RA $42k

If the above info is a true position, I am bewildered

At 69 means min sum in RA for her cohort is $94,600 at age 55.

Since her RA now is only 42k (after monthly payouts of $400) means she is unlikely to have met the min sum then. Even the amount in MA hints that min sum could not have been met at 55.

If she has met the min sum, the monthly payout under RSS would have been $750. Even if she had opted to join CPF Life, the monthly payout can't be $400 only.

Strange that she did not meet the min sum and yet she has $99k in OA and $2.4k in SA. Possible, but unlikely that the fund came solely from working beyond 55 cause it's unlikely to grow from zero at 55 to the present amount, especially the amount in OA.

If she has not met the min sum for her cohort, then she should have, early early, transfer whatever she has in SA and OA to RA to meet the then min sum (and to earn higher interest) ….. cause the SA and OA can't be withdrawn without first making good the shortfall in RA at 55.

 

[candy crush]

How else can you phrase 'his OA and sa is live and can be withdrawn any time'?

Also putting money into RA will result in a payout the next month?

My father's RA was exhausted and remained zero for many years. Then one day, I decided to top up his RA for tax relief. But there was no payout while his RA grew with accumulated interest. Six years later, I did another topping up and his monthly payout re-started only when I requested for monthly payout on his behalf.

monthly payout amount is the define by CPF

if in his account is $50000, it will have fix amount payout every month right?

I cannot request lesser right?

 

[candy crush]

i dont think you are asking stupid questions. these are real questions with regards to your situation.

it is good that you gain more infor from cpf site. problem is it is all over the place. it is not easy to integrate the knowledge. only you can choose the best solution for yourself.

Update with more visibility abt my situation

 

[henrylbh]

monthly payout amount is the define by CPF

if in his account is $50000, it will have fix amount payout every month right?

I cannot request lesser right?

Payout will depend on the RA balance at the time of request to commence payout and the payout will be fixed till the RA is exhausted (assuming his remains under the previous Retirement Sum Scheme, applicable to you dad's case and he has option to go for CPF Life. I understand that there is a min payout amount (I think is $250, but not for CPF Life). Not sure whether you can request lower payout, but I hear it's possible.

 

[tangent314]

Ok, please correct me if I'm wrong. I haven't been following this line of the thread very closely. My read of the situation is that your dad is currently receiving his CPF Life payout into his bank account and spending it however he likes. He's not bothered about his HDB loan because his OA balance has all the while been taking care of the loan payment.

The problem of course, is that in 8-9 months, the OA is going to run out of money and your father will likely start defaulting on the loan. I'm not sure if your mother is in the picture, but her OA balance would help mitigate the issues. I'm just going to assume the worst and he's not getting any help except from you.

I think your best option is to simply to pay off most of the loan. From my rough calculations, you can pay off $27075 for an outstanding balance of $3165, leaving your dad with a monthly payment of ~$37.60/month which his remaining OA can slowly pay off all the way until end 2027.

This will also be least disruptive, since he can continue to do whatever he likes with the $395/month that he is getting. I don't think you really want to try a scheme to increase his monthly payout only to make him manually make a loan repayment to HDB every month. You could arrange GIRO perhaps, but that's assuming he doesn't spend everything before GIRO tries to make the deduction. There's also no point putting money into his OA because it's earning interest less than the loan interest.

 

[henrylbh]

i estimated his ra to be 50k to 60k. you can use the payout from this to pay the house loan.

you know why your estimate is completely out. He has zero RA.

$395 is the amount of housing instalment paid by OA.

I could also be wrong. Though his RA is zero, he could have opted for CPF Life and receiving monthly payout of $395.

From the subsequent post, it is noted that the housing instalment is actually $359.

395 and 359

candy crush mentioned -

'but his monthly payout use to pay his housing loan

$395 per month

so basically is no payout, after deduct'


Does 'basically is no payout' means the father is using the monthly payout of 395 to pay the housing loan of 359? Or he wow the payout and let OA pays the housing loan?

Also noted that the father has SA balance, meaning he could still be working (on and off)? More money to wow

 

[dork32]

I could also be wrong. Though his RA is zero, he could have opted for CPF Life and receiving monthly payout of $395.

From the subsequent post, it is noted that the housing instalment is actually $359.

395 and 359

candy crush mentioned -

'but his monthly payout use to pay his housing loan

$395 per month

so basically is no payout, after deduct'


Does 'basically is no payout' means the father is using the monthly payout of 395 to pay the housing loan of 359? Or he wow the payout and let OA pays the housing loan?

Also noted that the father has SA balance, meaning he could still be working (on and off)? More money to wow

the estimate is wrong because candy crush did not phrase his statement correctly