CPF for retirement planning

[SBC]

http://forums.hardwarezone.com.sg/eat-drink-man-woman-16/cpf-life-drawdown-start-67-a-5341648.html

Am I mis-led by this thread ? Haha

Is there a coupling between CPF PEA & re-employment? May have read it some where recently.

 

[FP_IFA]

http://forums.hardwarezone.com.sg/eat-drink-man-woman-16/cpf-life-drawdown-start-67-a-5341648.html

Am I mis-led by this thread ? Haha

Is there a coupling between CPF PEA & re-employment? May have read it some where recently.

I haven't heard of anything on changing the withdrawal age again. 65 is still official.

 

[jackieatbtu]

If I opt for the pledging, would cpf allow me to buy another annuity with the balance cpf money?
My thinking is at 55, what should we do with the extra cpf money? Invest in stock would be risky at that point in time as need to draw down over the years. Private insurance annuity?

 

[wts2013]

http://forums.hardwarezone.com.sg/eat-drink-man-woman-16/cpf-life-drawdown-start-67-a-5341648.html

Am I mis-led by this thread ? Haha

Is there a coupling between CPF PEA & re-employment? May have read it some where recently.

haha u chose to misled, relying on edmw threads without doing your own due diligence!

I posted all the following in another thread, since mod dun allow me to reference/link to another thread, I copy here for your reading pleasure:

wts2013 wrote:
In summary, there are 4 ways to grow your SA faster:

1. Topup SA with cash
2. Transfer from OA to SA
3. Make VC (on top of your salary/mandatory contribution if max not hit)
4. Invest your SA

U will not be able to do 1 n 2 when SA hit the minimum sum, but still can do 3 n 4 to grow your SA.

If u got the money and can afford to do it like AK, just do it, it is worth it


wts2013 wrote:
U should focus your time and energy on growing your SA instead of worrrying over something which will never happen. CPF withdrawal age will always be 55, only change is how much u can withdraw. Now the CPF Life payout is already 65 and u can choose to defer to 70.


wts2013 wrote:
I'm very happy that CPF Life payout starts at 65 and the decision to join CPF Life can be deferred to 65. My CPF monies still remain in my account to accumulate higher interest until 65, should anything happen before 65, I get all my money back, not a single cent is lost compared to if u join CPF Life at 55.

CPF withdrawal age will always be 55, I repeat 55, and I will continue to leave the money in CPF to earn higher interests, unless I need it.

CPF should not be your only source of retirement funds.


wts2013 wrote:
CPF withdrawal age is always at 55 since CPF inception, it is still 55 at SG50 and come SG100. There is no need to change it. To control how much u can withdraw, just change the minimum sum, and this has been changed in the past and already “cast in stone” till 2020.

Why waste your time and effort focusing on things which u cannot control, instead of focusing on things which u can control like growing your CPF/SA with strategies which others had kindly shared. I only found out about these strategies recently and too late for me to practise all but I have no regrets cos I already pass the goal post with hardwork not with these super short cut strategies!

This will be my last post on this topic. It is your choice, think positive and take advantage of these opportunities or be left behind

 

[hogrider88]

i know this is not TS concern, but what if u hv a 30 yr hdb loan paying housing?

1. continue paying 30 yr loan, any excess move to SA to grow
2. continue paying 30 yr loan, any excess pump (>20k) pump into ur house

i still feel transfer OA to SA is a move for HNW.. not for average people...

 

[kzonexx]

Bro, "U will not be able to do 1 n 2 when SA hit the minimum sum" - Minimum sum refers to the basic, full or enhance amount?

haha u chose to misled, relying on edmw threads without doing your own due diligence!

I posted all the following in another thread, since mod dun allow me to reference/link to another thread, I copy here for your reading pleasure:

wts2013 wrote:
In summary, there are 4 ways to grow your SA faster:

1. Topup SA with cash
2. Transfer from OA to SA
3. Make VC (on top of your salary/mandatory contribution if max not hit)
4. Invest your SA

U will not be able to do 1 n 2 when SA hit the minimum sum, but still can do 3 n 4 to grow your SA.

If u got the money and can afford to do it like AK, just do it, it is worth it


wts2013 wrote:
U should focus your time and energy on growing your SA instead of worrrying over something which will never happen. CPF withdrawal age will always be 55, only change is how much u can withdraw. Now the CPF Life payout is already 65 and u can choose to defer to 70.


wts2013 wrote:
I'm very happy that CPF Life payout starts at 65 and the decision to join CPF Life can be deferred to 65. My CPF monies still remain in my account to accumulate higher interest until 65, should anything happen before 65, I get all my money back, not a single cent is lost compared to if u join CPF Life at 55.

CPF withdrawal age will always be 55, I repeat 55, and I will continue to leave the money in CPF to earn higher interests, unless I need it.

CPF should not be your only source of retirement funds.


wts2013 wrote:
CPF withdrawal age is always at 55 since CPF inception, it is still 55 at SG50 and come SG100. There is no need to change it. To control how much u can withdraw, just change the minimum sum, and this has been changed in the past and already “cast in stone” till 2020.

Why waste your time and effort focusing on things which u cannot control, instead of focusing on things which u can control like growing your CPF/SA with strategies which others had kindly shared. I only found out about these strategies recently and too late for me to practise all but I have no regrets cos I already pass the goal post with hardwork not with these super short cut strategies!

This will be my last post on this topic. It is your choice, think positive and take advantage of these opportunities or be left behind

 

[elnewbie]

Points 1 and 2 can still be done when u reach 55. From here on, you can do further topups to RA account up to the ERS limit.

Bro, "U will not be able to do 1 n 2 when SA hit the minimum sum" - Minimum sum refers to the basic, full or enhance amount?

 

[highsulphur]

Points 1 and 2 can still be done when u reach 55. From here on, you can do further topups to RA account up to the ERS limit.

Should be FRS...

 

[elnewbie]

No, it's ERS.
I can't post links, lest I get banned. But it's on the front page of the Retirement Sum scheme on CPF website.

Quote: "Topping up to the current Enhanced Retirement Sum (available from January 2016), a sum set at three times the Basic Retirement Sum, to the Retirement Account gives you the opportunity to enjoy a higher monthly payout. However, you can only enjoy tax relief for cash top-ups to your own or recipient's Retirement Account up to the current Full Retirement Sum. Cash top-ups beyond the current Full Retirement Sum will not be eligible for tax relief."

Unquote

Should be FRS...

 

[Perisher]

No, it's ERS.
I can't post links, lest I get banned. But it's on the front page of the Retirement Sum scheme on CPF website.

Quote: "Topping up to the current Enhanced Retirement Sum (available from January 2016), a sum set at three times the Basic Retirement Sum, to the Retirement Account gives you the opportunity to enjoy a higher monthly payout. However, you can only enjoy tax relief for cash top-ups to your own or recipient's Retirement Account up to the current Full Retirement Sum. Cash top-ups beyond the current Full Retirement Sum will not be eligible for tax relief."

Unquote

Posting links doesn't get one banned. Linking post also doesn't.
The issue is with excessive linking of post to different threads and making a mess of all threads involved.

E.g.
linking multiple threads to other post in another thread and linking more in that thread to more of other post in other threads is confusing to follow to say the least.

One doesn't have to link several iPhone post with several iPhone thread and then link that iPhone thread to several other iPhone function threads. The topics may overlap to a certain extent but it's not necessary to link them all together. Otherwise, one might as well link all insurance threads together.

If the matter at hand is direct and easy to comprehend without reading past/future post of that link then linking is fine.
If one needs to read that post and read the before and after, it becomes complicated to follow.
And if one keep adding more links in that manner, it becomes excessive.

 

[highsulphur]

No, it's ERS.
I can't post links, lest I get banned. But it's on the front page of the Retirement Sum scheme on CPF website.

Quote: "Topping up to the current Enhanced Retirement Sum (available from January 2016), a sum set at three times the Basic Retirement Sum, to the Retirement Account gives you the opportunity to enjoy a higher monthly payout. However, you can only enjoy tax relief for cash top-ups to your own or recipient's Retirement Account up to the current Full Retirement Sum. Cash top-ups beyond the current Full Retirement Sum will not be eligible for tax relief."

Unquote

Thanks. So now we can top up our SA to ERS (compare to just the FRS before 2016) but there is no tax benefits if it's above FRS.

 

[wts2013]

Bro, "U will not be able to do 1 n 2 when SA hit the minimum sum" - Minimum sum refers to the basic, full or enhance amount?

Points 1 and 2 can still be done when u reach 55. From here on, you can do further topups to RA account up to the ERS limit.

No, it's ERS.
I can't post links, lest I get banned. But it's on the front page of the Retirement Sum scheme on CPF website.

Quote: "Topping up to the current Enhanced Retirement Sum (available from January 2016), a sum set at three times the Basic Retirement Sum, to the Retirement Account gives you the opportunity to enjoy a higher monthly payout. However, you can only enjoy tax relief for cash top-ups to your own or recipient's Retirement Account up to the current Full Retirement Sum. Cash top-ups beyond the current Full Retirement Sum will not be eligible for tax relief."

Unquote

Thanks. So now we can top up our SA to ERS (compare to just the FRS before 2016) but there is no tax benefits if it's above FRS.

Hello, read carefully! SA vs RA

When we talk about topping up to SA, it is always about before 55 and FRS!

After 55, SA will be transferred to RA. U cannot topup SA anymore but u can still VC or MC to SA. U can topup your RA up to ERS if u want. I dun want.

 

[highsulphur]

So I was right about topping up the SA up to FRS la

 

[havetheveryfun]

After 55, SA will be transferred to RA. U cannot topup SA anymore but u can still VC or MC to SA. U can topup your RA up to ERS if u want. I dun want.

Whats the different between VC to SA and topping up SA?

VC= voluntary contribution to SA? then aren't they the same

 

[henrylbh]

Whats the different between VC to SA and topping up SA?

VC= voluntary contribution to SA? then aren't they the same

No such term as VC for SA. VC must be in cash and will go into all 3 accounts i.e. OA, SA and MA and there is no tax relief. Besides, there is also an annual limit.

 

[wts2013]

Whats the different between VC to SA and topping up SA?

VC= voluntary contribution to SA? then aren't they the same

When u VC to SA, the amount u contribute gets allocated across 2-3 accounts (ie OA/SA/MA), based on CPF allocation rates/rules and balances in those accounts.

When u topup to SA, the whole amount goes to SA.

VC to SA is a financial or technical jargon used by people who cannot do topup to SA. In CPF website or rules, u can only find VC to CPF (OA/SA/MA)

 

[Squaredot]

3. Make VC (on top of your salary/mandatory contribution if *max* not hit)

How much is this max?

 

[raven.tw]

Aside CPF as a replacement for bonds component (pardon me if someone asked a similar question before), is it feasible to not take CPF as part of my portfolio and buy bonds (bond index?)?

Logic behind this is that it is an opporunity cost that if market crashes or there is a bad economy, i can sell the bonds to earn extra money (since bad economy = higher bond price) which i cannot earn if i dont buy bonds and take CPF as a bond replacement.

Any advice or comments?

 

[highsulphur]

Aside CPF as a replacement for bonds component (pardon me if someone asked a similar question before), is it feasible to not take CPF as part of my portfolio and buy bonds (bond index?)?

Logic behind this is that it is an opporunity cost that if market crashes or there is a bad economy, i can sell the bonds to earn extra money (since bad economy = higher bond price) which i cannot earn if i dont buy bonds and take CPF as a bond replacement.

Any advice or comments?

I belong to the camp that views cpf as my bond portfolio to the point I will consider every opportunity to top up.

Cpf is better than a bond in a sense that's always trading at par. Bonds don't always trade above par during a downturn. If the market crashes, there's nothing to stop you from using CPF monies to buy shares.

 

[highsulphur]

3. Make VC (on top of your salary/mandatory contribution if *max* not hit)

How much is this max?

Seriously, a simple Google can find the answer. 37,740.

https://www.cpf.gov.sg/employers//employerguides/employer-guides/paying-cpf-contributions/voluntary-contributions-for-your-employees#Item671