CPF Easy Info Thread. :)

[candy crush]

Nothing in RA pretty much confirms he is on CPF Life.
Find out how much he is getting per month.

I will check

is it recommend for me to put money into RA or I shld give him cash instead?

 

[dork32]

is it recommend for me to put money into RA or I shld give him cash instead?

it is like buying a car.
if you take a loan, you have to pay every month but amount is not so much. (give cash to dad every month)

if you pay cash, you dont have to pay everymonth and save on the interest. (put money into ra one time)

again there is no right or wrong answer.

 

[dork32]

it is like buying a car.
if you take a loan, you have to pay every month but amount is not so much. (give cash to dad every month)

if you pay cash, you dont have to pay everymonth and save on the interest. (put money into ra one time)

again there is no right or wrong answer.

putting money in ra is not as straight forward.

eg you give your dad 350 a month
you put in 1000, you only get 7 payout as previously mentioned.
you have to put 50k to get a payout of 350.

if you put the 350 in ra everymonth, your dad get only $2 during the first month. i will kill you if i am your dad.

you have to put a lot (50k) into ra to have a substantial payout(350 per month). but you will realize that if you add up all the 350 everymonth, it will be significantly higher than 50k

 

[BBCWatcher]

Also, we should mention that you can get up to $7,000 of tax relief when you top up one or more qualifying family members' Retirement Accounts. Starting next year (2021) there are going to be some matching funds available in certain cases, too.

Of course you can do some of both: you can give a parent a monthly allowance and top up his/her Retirement Account. It's not either/or.

 

[tangent314]

You meant SA there, right?

According to the CPF website, it's OA.
https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/retirement-sum-topping-up-scheme

The maximum amount of CPF savings that you can transfer to your spouse's CPF account is:
*If you are below 55 years old: *Your OA savings after setting aside the current BRS[1].
*If you are 55 years old and above: *Your CPF savings[3] after setting aside your BRS[1].

One exception: self-to-self OA to SA transfers do not affect future Retirement Account withdrawal limits, except that you'll have more total CPF dollars available because SA earns higher interest.

As per https://deluxeforums.hardwarezone.com.sg/125538514-post765.html I have confirmed with CPFB that OA->SA transfers are excluded when you do a property pledge

 

[henrylbh]

Nothing in RA pretty much confirms he is on CPF Life.
Find out how much he is getting per month.

By default, the father is under RSS. His RA zero means either he has exhausted his RA in a few years, if he did not mean his cohort's min sum at 55, or he could have opted for CPF Life. More likely the former. Candy crush has no idea and or clear.

 

[BBCWatcher]

According to the CPF website, it's OA.
https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/retirement-sum-topping-up-scheme

The maximum amount of CPF savings that you can transfer to your spouse's CPF account is:
*If you are below 55 years old: *Your OA savings after setting aside the current BRS[1].
*If you are 55 years old and above: *Your CPF savings[3] after setting aside your BRS[1].

OK, I think you're over-interpreting what CPF is writing there. As I understand it, you can set aside the current BRS fully or partially via your Special Account. They're just saying that the source of the transfer is your Ordinary Account, not that the whole BRS has to be held in the OA specifically. Otherwise, they would have written something like "...after setting aside the current BRS in your OA."

 

[candy crush]

By default, the father is under RSS. His RA zero means either he has exhausted his RA in a few years, if he did not mean his cohort's min sum at 55, or he could have opted for CPF Life. More likely the former. Candy crush has no idea and or clear.

But I can check in his CPF account right?

 

[henrylbh]

But I can check in his CPF account right?

Sorry I am not sure what will be shown in his account if he is under CPF Life.

Ask him personally whether he is receiving fixed monthly payout from CPF and look into his bank book to see the description of the payout.

If no monthly fixed amount credited to his bank account, then it's confirm he has exhausted his RA with earlier 'min' payouts.

Or may he not even have RA (for subsequent payout) from the start of 55 and therefore no monthly payout

Another way, look at his past annual statements. Since you are able to log in into his CPF, download and save all his annual statements for the past 7 years or as far back as allowed by the system, with no charge, to understand what's going on.

 

[tangent314]

OK, I think you're over-interpreting what CPF is writing there. As I understand it, you can set aside the current BRS fully or partially via your Special Account. They're just saying that the source of the transfer is your Ordinary Account, not that the whole BRS has to be held in the OA specifically. Otherwise, they would have written something like "...after setting aside the current BRS in your OA."

Ok your interpretation does make more sense

By default, the father is under RSS. His RA zero means either he has exhausted his RA in a few years, if he did not mean his cohort's min sum at 55, or he could have opted for CPF Life. More likely the former. Candy crush has no idea and or clear.

Well, if OA has been paying the home loan for 8 years, then OA must have been quite substantial, which can't be the case if the RA was that low. I'm thinking there must have been quite a substantial OA, which means RA was high enough that RA went into CPF Life by default.

Unless of course, the dad is cash rich and has been paying the home loan with cash all the while.

 

[henrylbh]

By default, the father is under RSS. His RA zero means either he has exhausted his RA in a few years, if he did not mean his cohort's min sum at 55, or he could have opted for CPF Life. More likely the former. Candy crush has no idea and or clear.

Well, if OA has been paying the home loan for 8 years, then OA must have been quite substantial, which can't be the case if the RA was that low. I'm thinking there must have been quite a substantial OA, which means RA was high enough that RA went into CPF Life by default.

Unless of course, the dad is cash rich and has been paying the home loan with cash all the while.

Till now, candy crush doesn't even know whether the father is getting any monthly payout from CPF.

Hence, you guess and I guess only

Because his RA is zero, my first guess was the father could have opted for CPF Life payout. But it is also possible that the father could have a low RA at 55 and hence the RA, with min payout of $250 starting at age 60 or 62 under RSS, could have been exhausted by now.

(note - based on his age, he could have started retirement payout before the introduction of CPF Life).

By 55, we don't know how much OA he has used for payment of property as that would give an idea of how much SA he had for RA.

From 55 to date, about 70k had been paid for the property and how much is from CPF we don't know. Likely before the creation of RA at 55, he could have reserved his OA from being transferred to RA.


So until candy crush finds out, both possibilities exist.

 

[candy crush]

Till now, candy crush doesn't even know whether the father is getting any monthly payout from CPF.

Hence, you guess and I guess only

Because his RA is zero, my first guess was the father could have opted for CPF Life payout. But it is also possible that the father could have a low RA at 55 and hence the RA, with min payout of $250 starting at age 60 or 62 under RSS, could have been exhausted by now.

(note - based on his age, he could have started retirement payout before the introduction of CPF Life).

By 55, we don't know how much OA he has used for payment of property as that would give an idea of how much SA he had for RA.

From 55 to date, about 70k had been paid for the property and how much is from CPF we don't know. Likely before the creation of RA at 55, he could have reserved his OA from being transferred to RA.


So until candy crush finds out, both possibilities exist.

if I find out after the CPF payout thing, what else do u need me to findout? what other information do u need?

 

[dork32]

Of course you can do some of both: you can give a parent a monthly allowance and top up his/her Retirement Account. It's not either/or.

of course. as in buying a car, you can decide how much you want to put in as downpayment.

 

[candy crush]

Can I check the rebate tax thing

I nt very sure how it work

assuming my annual income is $55,000 (gross)

How much tax do I have to pay?

if I top up $10,000 on my father RA
if I top up $10,000 on my mother RA

how much rebate am I expecting?

is there a calculator for this thing?

 

[dork32]

Can I check the rebate tax thing

I nt very sure how it work

assuming my annual income is $55,000 (gross)

How much tax do I have to pay?

if I top up $10,000 on my father RA
if I top up $10,000 on my mother RA

how much rebate am I expecting?

is there a calculator for this thing?

you cannot top up so much and siam tax.

max is 7k. at this salary you are probably in the 7% bracket. 7%*7k is 490.
so you siam tax 490 this year.

next year top up another 7k, siam another 490. if you salary go up to 11.5% tax bracket, then you can siam more.

you can top up 20k but can only siam tax for 7k.

i will not top up 20k. for a gross of 55k, 20k is quite a lot of money. 7k sounds like a nice number.

7k will give you a 50 payout a month. eg if you give your parents 350 a month, you can now give 300 and let cpf pay the 50

next year, you top up another 7k. then you give 250 and let cpf give 100 and let this continue.

if you top up long enuf, it could be you give -200 and cpf give 350.

the other thing to note is the 7k that is top up will result in a increasing payout amount every year
eg this 7k = 50 payout
next year 7k = 52 payout
one more year 7k = 55payout.

 

[dork32]

Can I check the rebate tax thing

I nt very sure how it work

assuming my annual income is $55,000 (gross)

How much tax do I have to pay?

if I top up $10,000 on my father RA
if I top up $10,000 on my mother RA

how much rebate am I expecting?

is there a calculator for this thing?

again you can see that there is lack of info. i am guessing your tax bracket with your gross income. gross income is not so good. it is the taxable income that we are interested int

 

[BBCWatcher]

How much are you typically paying in income tax, Candy Crush? Do you expect your income to be similar this year compared to last year?

 

[henrylbh]

Can I check the rebate tax thing

I nt very sure how it work

assuming my annual income is $55,000 (gross)

How much tax do I have to pay?

if I top up $10,000 on my father RA
if I top up $10,000 on my mother RA

how much rebate am I expecting?

is there a calculator for this thing?

You are allowed a max of $7k tax relief for topping up either or both parent's RA with cash. There is no need to act as the relief is automatically given when you top up.

The amount of tax savings will depend on your tax bracket.

 

[henrylbh]

i will not top up 20k. for a gross of 55k, 20k is quite a lot of money. 7k sounds like a nice number.

7k will give you a 50 payout a month. eg if you give your parents 350 a month, you can now give 300 and let cpf pay the 50

next year, you top up another 7k. then you give 250 and let cpf give 100 and let this continue.

if you top up long enuf, it could be you give -200 and cpf give 350.

the other thing to note is the 7k that is top up will result in a increasing payout amount every year
eg this 7k = 50 payout
next year 7k = 52 payout
one more year 7k = 55payout.

Whether topping up 20k on a gross of 55 is a lot or not would depend on herself. She could be using her savings.

As for your laborious description of payout based on top up, you are giving wrong info.

Generally if the parents are under RSS, the payout duration is about 20 years from payout eligibility age. But the actual payout duration will be slightly longer, up to age of 90, due additional and extra interest. But there is a min monthly payout under RSS regardless of how much one has in RA.

In candy crush's case, the father PEA is 60 (or 62) and the mother is 65.

 

[dork32]

Whether topping up 20k on a gross of 55 is a lot or not would depend on herself. She could be using her savings.

As for your laborious description of payout based on top up, you are giving wrong info.

Generally if the parents are under RSS, the payout duration is about 20 years from payout eligibility age. But the actual payout duration will be slightly longer, up to age of 90, due additional and extra interest. But there is a min monthly payout under RSS regardless of how much one has in RA.

In candy crush's case, the father PEA is 60 (or 62) and the mother is 65.

no it is not wrong info. those are not real numbers, just an illustration. i am too lazy to do the real calculation.

for rss,i am assuming the payout is until 90. i tot dad is passed 70 already. 7k to pay for 20 years vs 19 years. it is quite natural that 20 years you get less.
for cpf life, the concept would be the same. payout would increase as the age at which the top up occurs increases.
like i said info is all over the place.