CPF Easy Info Thread. :)

[Thoreldan]

Hi guys...I'm planning to top up my parent's RA in the future with my cpf... As i most probably wont be purchasing any property any time soon... Understand that without a property I have to meet the FRS before I can make any transfer. what makes up the FRS ? It is a combination of SA+MA or OA+SA+MA? This is where i am confused at the moment...

Frs refers to the amt in your sa.

Edit: sorry i got it wrong as corrected by bbcw.
I actually meant to say once sa has frs, you cant do oa to sa transfer nor cash top up to sa. My apologies.

 

[BBCWatcher]

Hi guys...I'm planning to top up my parent's RA in the future with my cpf... As i most probably wont be purchasing any property any time soon... Understand that without a property I have to meet the FRS before I can make any transfer. what makes up the FRS ? It is a combination of SA+MA or OA+SA+MA? This is where i am confused at the moment...

Frs refers to the amt in your sa.

No, that's not correct. The CPF Board explains the rules here. To summarize, if you're under age 55 and transferring OA dollars to your parent's Special (parent under age 55) or Retirement (parent age 55+) Account, then you (the giver) must maintain at least the current Full Retirement Sum across your OA+SA+amounts withdrawn for the CPF Investment Scheme.

 

[theking_smen]

No, that's not correct. The CPF Board explains the rules here. To summarize, if you're under age 55 and transferring OA dollars to your parent's Special (parent under age 55) or Retirement (parent age 55+) Account, then you (the giver) must maintain at least the current Full Retirement Sum across your OA+SA+amounts withdrawn for the CPF Investment Scheme.

Frs refers to the amt in your sa.

I have a dropped a message to CPF as well... will update their answer if I get a reply...

 

[dork32]

I have a dropped a message to CPF as well... will update their answer if I get a reply...

thanks so much for willing to share here.

 

[theking_smen]

Hi guys...I'm planning to top up my parent's RA in the future with my cpf... As i most probably wont be purchasing any property any time soon... Understand that without a property I have to meet the FRS before I can make any transfer. what makes up the FRS ? It is a combination of SA+MA or OA+SA+MA? This is where i am confused at the moment...

So CPF board gave me a call earlier, the FRS will be made up of OA + SA... Like what BBCWatcher mention, the FRS amount have to be maintained and only the excess of the FRS can be transferred to our loves ones... only this helps

 

[henrylbh]

So CPF board gave me a call earlier, the FRS will be made up of OA + SA... Like what BBCWatcher mention, the FRS amount have to be maintained and only the excess of the FRS can be transferred to our loves ones... only this helps

You can transfer your Ordinary Account (OA) savings after setting aside the current Basic Retirement Sum (BRS) [1].

[1] BRS can be set aside using your OA savings, SA savings, and net amounts withdrawn for investments [2].

[2] Refers to the net amounts withdrawn for (i) an active investment account under the CPF Investment Scheme (CPFIS)-OA, and (ii) investments under the CPFIS-SA and discounted Singtel shares that have not been completely disposed of.

 

[zoneguard]

would like to enquire,

my mum is 65. she got 50k in RA, 60k in medisave she would like to top up 150k to her RA since the interest in bank is so low. is she able to do so? as topping up 150k would result in exceeding the FRS amount.

https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/retirement-sum-topping-up-scheme

https://www.cpf.gov.sg/Assets/members/Documents/Computation_of_amounts_for_recipients.pdf

Worked example.

 

[lifeafter41]

would like to enquire,

my mum is 65. she got 50k in RA, 60k in medisave she would like to top up 150k to her RA since the interest in bank is so low. is she able to do so? as topping up 150k would result in exceeding the FRS amount.

Any advice

Since your mum is 65, has she started receiving her payout?
She should be under the old scheme of minimum sum if I recall correctly...

 

[tempestuous-]

For those with mothers who are housewives (most likely entire amount in RA given back to them when they hit 55), is there any value for their children to make use of the Matched Retirement Savings Scheme?

 

[reddevil0728]

For those with mothers who are housewives (most likely entire amount in RA given back to them when they hit 55), is there any value for their children to make use of the Matched Retirement Savings Scheme?

what do you mean by make use? like top up for them? if that's the case for sure

 

[Nesplex]

Can anyone enlighten me what is the age that CPF Life will deduct the premium from our CPF RA? Thanks for any advice.

 

[Value.Matrix]

Can anyone enlighten me what is the age that CPF Life will deduct the premium from our CPF RA? Thanks for any advice.

From age 65 (if you start your payout) which can be delayed up to 70.

For some, theirs may already be deducted at age 55 (when CPF LIFE first came out, grandaddied le).

 

[dork32]

what do you mean by make use? like top up for them? if that's the case for sure

make use as in parent and child combine to milk the system

 

[SBC]

2021 new BHS cap announced already?

Suspect will be 63k.

 

[lifeafter41]

2021 new BHS cap announced already?

Suspect will be 63k.

Just went CPF site to look see, still at 60k......

 

[doratch]

2021 new BHS cap announced already?

Suspect will be 63k.

Still haven't announced yet.

My guess is 62k-63k.

 

[buaytuckchek]

2021 new BHS cap announced already?

Suspect will be 63k.

Historical data shows 5% increment per annum. So $63k for 2021 is possible.

That said, the cost of medical, careshield life have been increasing. There may be a possibility of higher increment too.

 

[BBCWatcher]

That said, the cost of medical, careshield life have been increasing. There may be a possibility of higher increment too.

Or lower. There’s precedent for slowing the rate of increase during comparatively difficult economic conditions. I have no prediction to offer, but anything ranging from 0% to +6% wouldn’t be too surprising.

 

[Okenba]

I am opting for Basic plan, with payout at 65.

I find the Escalating plan too expensive. There is a cheaper way (on average) to have similar protection.

Was just thinking about this. I understand that the plan for some is ERS, Basic, and then top-up RA for AMP.

While more troublesome, this allows for a higher payout then just everything into CPFlife.

My question is: What happens if you live past 95?
Maybe the chances not high, but wouldn't this be something to think about?
And when one is older and less mentally agile, that is when the solid income of CPFlife would be the most useful I would think.

What happens if your wife lives past 95? (Female life expectancy is higher.)
And if you have been the one managing the money, and now at 95, she is even less able to manage the money by herself.

I buy into kenny's idea, but this is the one question that I personally am still thinking about. I may not go so far as Escalating, but Basic + AMP really seems to be putting everything into 1 basket. The basket works so long as you (and/or wife) don't live past 95.

 

[zoneguard]

Was just thinking about this. I understand that the plan for some is ERS, Basic, and then top-up RA for AMP.

While more troublesome, this allows for a higher payout then just everything into CPFlife.

My question is: What happens if you live past 95?
Maybe the chances not high, but wouldn't this be something to think about?
And when one is older and less mentally agile, that is when the solid income of CPFlife would be the most useful I would think.

What happens if your wife lives past 95? (Female life expectancy is higher.)
And if you have been the one managing the money, and now at 95, she is even less able to manage the money by herself.

Sorry, I don't follow your reasoning, you are talking about mitigating longevity risk of the younger spouse(usually the ladies):

1. Does CPF LIFE Basic stop payout at 95? Doesn't it continue past 95 because of the premium paid to the pool?
2. AMP payouts as long as there's money in RA, correct? And since ERS is raised every year, you can top up RA every year to ensure AMP payout doesn't stop past 95.
3. Between the couple, there are 2 sets of OA/SA/MA/RA accounts to manoeuvre. You can do top-ups between them so long all the conditions for top-ups are met.
4. Non-CPF wealth to cover longevity risk.