CPF Life - Standard Plan

[SaGu]

Can explain more? What do u mean by Balance OA? So going by today’s FRS, if i have 220k in my SA and my bday is tmw, SA will be wiped out right? Supposing i have 700k in my OA (inflated this so that its more than ERS), Does this mean that in 2036, i can throw all my OA into RA and not touch the RA 20% to get a much bigger monthly payout?
It’s like throwing all your CPF inside and get payouts. Is this what u mean? Sorry a little blur here

sagu submit when you reached your 55th birthday, the $220K in your SA will be moved to your newly created RA account and if you have $700K you can consider topping up your RA account up to ERS amount of $440,800 to immediately earn the 4% interest in your RA account or leave them in OA account with the flexibility of withdrawal at any time and earn 2.5% interest in your OA account. The more money (including the 4% interest) in your RA account the higher your payout when you starts CPF Life at 65 to 70 years old but money in your RA account stays in your RA account and cannot be withdrawn.

At age 65 to 70 years old when you authorize CPF Board to commence your monthly CPF Life payouts, you will have a one-time option of withdrawing 20% of your RA amount (excluding top ups) from your RA account and if you choose to withdraw the 20%, the monthly CPF Life payout amounts will be lower than if you had not withdrawn the 20% and these differences in monthly payouts amount are demonstrated on the CPF website including selecting your CPF Life plans, ie. Standard, Basis or Escalating.


#saguwisdom

 

[se7nt4]

lifted off gemini:

Key Comparisons​

Feature	Standard Plan (Default)	Basic Plan
Primary Goal	Maximize monthly income for yourself.	Maximize the legacy/bequest left to loved ones.
Monthly Payout	Higher (~10% to 15% higher payouts).	Lower (~10% to 15% lower payouts).
Bequest to Nominees	Lower. Zero bequest if you pass away after age ~75–80.	Higher. Leaves a substantial bequest up to age ~90.
How Premium Works	100% of Retirement Account (RA) is committed immediately to the CPF LIFE Lifelong Income Fund.	Only ~10%–20% of RA goes to the premium fund initially. The remaining 80%–90% stays in your RA.
Where Payouts Come From	Paid entirely out of the CPF LIFE premium fund from day one.	Paid out of your RA savings first until age 90, then from the CPF LIFE fund.
Interest Allocation	Premium interest goes into the pooled Lifelong Income Fund to support higher payouts.	Extra tier interest stays in your RA, which gets passed on as a bequest if you pass away early.

 

[se7nt4]

How to Choose​

• Choose the Standard Plan if: You want to maximize your lifestyle during retirement, do not have dependents relying on a legacy, or prefer the simplicity of stable, high monthly income.
• Choose the Basic Plan if: You want to leave as much money as possible to your children/beneficiaries, or you have other income sources and don't require maximum monthly payouts from CPF.
  DBS
  

(Note: If you do not choose a plan by age 70, CPF automatically enrolls you in the Standard Plan.)

 

[Andrew833]

Good point! Thanks!

I have to be really sure that I won't be purchasing any property in Singapore using CPF in the next decade then!

You can transfer a sum to SA, leave a sum in OA, just in case. And OA first 20k got extra interest.

 

[matt1618sg]

I am on Basic Plan. I get $1,031 pm. I don't see why I should subsidize other people's retirement, I want to keep all the interest in my RA for myself and my beneficiaries.

 

[rizhal]

I am on Basic Plan. I get $1,031 pm. I don't see why I should subsidize other people's retirement, I want to keep all the interest in my RA for myself and my beneficiaries.

Sir, I used to incline towards basic plan selection too (I am not 65 yet) for my CPF life.

But I think my children will inherit the cash proceed of my flat so I may choose Standard instead to get more cash monthly. I am on the fence now No need to leave too much bequeath to them.

Different strokes for different folks.

 

[wutawa]

You can transfer a sum to SA, leave a sum in OA, just in case. And OA first 20k got extra interest.

OA 1st $20k will not get extra int if your sa + ma have more than $60k.

 

[Andrew833]

OA 1st $20k will not get extra int if your sa + ma have more than $60k.

Is it?
I thought OA is cap at 20k, 40k for SA and MA.

 

[KnyghtRyder]

OA 1st $20k will not get extra int if your sa + ma have more than $60k.

Fake news

 

[wutawa]

Is it?
I thought OA is cap at 20k, 40k for SA and MA.

no cap for sa/Ra/ma
$20k cap for OA
even if OA gets bonus int, it will credit into SA/Ra..

 

[Andrew833]

no cap for sa/Ra/ma
$20k cap for OA
even if OA gets bonus int, it will credit into SA/Ra..

The first $60,000 of your combined balances is taken from the various accounts in the following sequence:

1st: Retirement Account (RA), including any CPF LIFE premium balance
2nd: OA, with a cap of $20,000
3rd: Special Account (SA)
4th: MediSave Account (MA)

OA first $20k got extra 1% interest (above age 55 extra 2%)
Then follow by SA and MA.

Yes, only OA got cap. Extra Interest credit into SA/RA also consider extra money mah.

 

[Andrew833]

Base on this;
The first $60,000 of your combined balances is taken from the various accounts in the following sequence:

1st: Retirement Account (RA), including any CPF LIFE premium balance
2nd: OA, with a cap of $20,000
3rd: Special Account (SA)
4th: MediSave Account (MA)

After age 55, first $30k - RA get extra 2%
OA - none
2nd $30k - MA get extra 1%

 

[Andrew833]

for below 55yo, the priority is sa-ma-oa.

You check this link
https://www.income.com.sg/blog/cpf-interest-rates

 

[weng0202]

Errh... this is sell puts to be more correct. .

Buy call is more like buy lottery tickets...

Oh okay. I only know got put and call options. One is betting the price goes down and the other goes up. Usually ppl pair it with the holdings they wanna sell or buy.

 

[BBCWatcher]

OA 1st $20k will not get extra int if your sa + ma have more than $60k.

You earn maximum bonus interest if both of these conditions are true:

1. OA+MA+SA+RA >= $60,000
2. MA+SA+RA >= $40,000

You CAN earn maximum bonus interest even if you have $0 in OA. For example, you could be self-employed, make only compulsory contributions to your MA, have $60,000 or more in your MA (and zero balances otherwise), and you would earn maximum bonus interest.

Maximum bonus interest is $600 per year below age 55 and $900 per year from age 55 onward.

 

[windwaver]

by the way, how to withdraw from CPF when we reach 55 years old??? the system will paynow me a fixed sum monthly???

There are only 2 camps.

Those that will top up until gao gao and those that will prevent money from getting into CPF.

Those with kids and those without clearly will make the system work differently for their retirement needs.

Why you want to withdraw at 55?

 

[yokine3a]

by the way, how to withdraw from CPF when we reach 55 years old??? the system will paynow me a fixed sum monthly???

Log in to the Official CPF Website using your Singpass.
Go to your Retirement Dashboard to check your exact withdrawable amount.
Navigate to Tools and Services, select Forms and e-Services, and choose the e-application to withdraw retirement savings.
Enter the amount you wish to withdraw and submit your application.

 

[BBCWatcher]

There are only 2 camps.
Those that will top up until gao gao and those that will prevent money from getting into CPF.

These decisions aren't binary. They're in penny increments, in fact. If for example you want to deposit precisely $39,015.28 into your CPF Retirement Account (when you're age 55+), you can do that provided you still have room below the current Enhanced Retirement Sum.

Those with kids and those without clearly will make the system work differently for their retirement needs.

That's certainly not a given either. While having kids might be one factor in making CPF-related decisions, it's quite common to make exactly the same decisions whether or not you have children.

 

[Keyite2021]

sagu submit when you reached your 55th birthday, the $220K in your SA will be moved to your newly created RA account and if you have $700K you can consider topping up your RA account up to ERS amount of $440,800 to immediately earn the 4% interest in your RA account or leave them in OA account with the flexibility of withdrawal at any time and earn 2.5% interest in your OA account. The more money (including the 4% interest) in your RA account the higher your payout when you starts CPF Life at 65 to 70 years old but money in your RA account stays in your RA account and cannot be withdrawn.

At age 65 to 70 years old when you authorize CPF Board to commence your monthly CPF Life payouts, you will have a one-time option of withdrawing 20% of your RA amount (excluding top ups) from your RA account and if you choose to withdraw the 20%, the monthly CPF Life payout amounts will be lower than if you had not withdrawn the 20% and these differences in monthly payouts amount are demonstrated on the CPF website including selecting your CPF Life plans, ie. Standard, Basis or Escalating.


#saguwisdom

Thanks for the explanation

 

[compro_1975]

No. As you can see above, they took about 83% of my RA for CPF Life premium.

i also curious to know the 17% they will take from where.... ts, just to be clear, your total sum to pay is 252,300?