CPF Questions (minimum sum)

[lasnoblur]

Hi all,

I tried looking on the CPF website but it is not clear.

1. If i have turned 55, i understand that my oa and sa will tranfer to my RA. If i have more than the minimum sum of 161K, will everything be transferred or i can choose to only transfer 161K?

2. Is the transfer automatic and a 1 time procedure at age 55? Will i be notified before the transfer?

3. After the minimum of 161k is reached in RA, can i still continue topping up the SA and OA account (volunteer topup) to enjoy the interest?

4. I read that the amount (after 161K is reached) in RA in OA and SA can be withdraw anytime after age 55? is this true?

Thanks in advance.

 

[xiao.xin]

Hi all,

I tried looking on the CPF website but it is not clear.

1. If i have turned 55, i understand that my oa and sa will tranfer to my RA. If i have more than the minimum sum of 161K, will everything be transferred or i can choose to only transfer 161K?

2. Is the transfer automatic and a 1 time procedure at age 55? Will i be notified before the transfer?

3. After the minimum of 161k is reached in RA, can i still continue topping up the SA and OA account (volunteer topup) to enjoy the interest?

4. I read that the amount (after 161K is reached) in RA in OA and SA can be withdraw anytime after age 55? is this true?

Thanks in advance.

1) at age of 55, you pick the scheme you want.
Basic Retirement Sum: 80,500
Full Retirement Sum: 161,000
Enhanced Retirement Sum: 241,500

Whichever you picked, the specific amount will be transferred to your RA, any outstanding amount can be withdrawn

2)Iirc, CPF board will send you letter to ask you go down. At the same time they will also ask you to make a nomination if you don't have.

3)Once RA is setup, whatever amount you can choose whether to continue to keep it inside or withdraw. If you're still working, the contribution also continue. You can also self contribute to get the interest.

4) After age of 55 and having hit the BRS, some uncle and aunties actually used their CPF as a savings account by topping up their SA account, which can be withdrawn anytime they want. So Yes thats correct.

 

[henrylbh]

4) After age of 55 and having hit the BRS, some uncle and aunties actually used their CPF as a savings account by topping up their SA account, which can be withdrawn anytime they want. So Yes thats correct.

At 55, your SA and if not enough your OA will be transferred to meet the min sum. After that you can't top up SA only. You can still make voluntary contribution but it will go into OA, MA and SA according to the allocation table.

 

[xiao.xin]

At 55, your SA and if not enough your OA will be transferred to meet the min sum. After that you can't top up SA only. You can still make voluntary contribution but it will go into OA, MA and SA according to the allocation table.

a question, upon contribution, can they transfer the OA into SA?

 

[henrylbh]

From 55, no transfer of OA to SA is allowed.

 

[qhong61]

1) at age of 55, you pick the scheme you want.
Basic Retirement Sum: 80,500
Full Retirement Sum: 161,000
Enhanced Retirement Sum: 241,500

Whichever you picked, the specific amount will be transferred to your RA, any outstanding amount can be withdrawn

2)Iirc, CPF board will send you letter to ask you go down. At the same time they will also ask you to make a nomination if you don't have.

3)Once RA is setup, whatever amount you can choose whether to continue to keep it inside or withdraw. If you're still working, the contribution also continue. You can also self contribute to get the interest.

4) After age of 55 and having hit the BRS, some uncle and aunties actually used their CPF as a savings account by topping up their SA account, which can be withdrawn anytime they want. So Yes thats correct.

Understand fm cpf board, whatever u top up in cash to ur RA, only max $80k can be withdrawn. So dont think it's like u want to top up how much and withdraw how much, u can do as u like. It's not a bank.

 

[peaceone]

1) at age of 55, you pick the scheme you want.
Basic Retirement Sum: 80,500
Full Retirement Sum: 161,000
Enhanced Retirement Sum: 241,500

let's say i had a total of 161,000 in my SA and I chosen BRS 80,500 at age 55 and the remaining $80,500 will continue stay in SA earn interest? Subsequent working cpf contribution all go into QA only? And both SA and QA sum can withdraw anytime i want, thru simple as online request?

 

[qhong61]

1) at age of 55, you pick the scheme you want.
Basic Retirement Sum: 80,500
Full Retirement Sum: 161,000
Enhanced Retirement Sum: 241,500

let's say i had a total of 161,000 in my SA and I chosen BRS 80,500 at age 55 and the remaining $80,500 will continue stay in SA earn interest? Subsequent working cpf contribution all go into QA only? And both SA and QA sum can withdraw anytime i want, thru simple as online request?

Should be this way. But u need to pledge ur flat.

 

[kehyi4]

aiyoh... so many half-accurate things being spread here...

firstly - at 55, RA is created. It will be funded by SA up to FRS. If SA not enough, it will take from OA. AFTER it is funded up to FRS, THEN you get to decide BRS or FRS or ERS. If FRS - no further action from you. IF ERS - transfer additional funds from SA, if not enough then OA (or cash if you are freaking cash-rich). If BRS, pledge property and WITHDRAW from RA the appropriate amt. This amt will NOT go back to SA or OA, it has to come out as cash.

secondly - after 55, if you cash top up to RA, there is NO WAY to withdraw that as cash. once it goes into RA, it will be earmarked for CPF LIFE. there's no known way to get it out (except dying or being as good as dead). cash top up to OA is a different story. don't confuse the two. btw, after 55, there's no way to do cash top up to SA (except VC), so don't dream of earning 4% from CPF Board

source of my info: CPF FAQ, CPF@55 Booklet

this is based on my current understanding of how CPF@55 works. If I'm mistaken, pls let me know (preferably with some sort of documentation from CPF instead of "i think" "i heard" "because I say so")

 

[qhong61]

aiyoh... so many half-accurate things being spread here...

firstly - at 55, RA is created. It will be funded by SA up to FRS. If SA not enough, it will take from OA. AFTER it is funded up to FRS, THEN you get to decide BRS or FRS or ERS. If FRS - no further action from you. IF ERS - transfer additional funds from SA, if not enough then OA (or cash if you are freaking cash-rich). If BRS, pledge property and WITHDRAW from RA the appropriate amt. This amt will NOT go back to SA or OA, it has to come out as cash.

secondly - after 55, if you cash top up to RA, there is NO WAY to withdraw that as cash. once it goes into RA, it will be earmarked for CPF LIFE. there's no known way to get it out (except dying or being as good as dead). cash top up to OA is a different story. don't confuse the two. btw, after 55, there's no way to do cash top up to SA (except VC), so don't dream of earning 4% from CPF Board

source of my info: CPF FAQ, CPF@55 Booklet

this is based on my current understanding of how CPF@55 works. If I'm mistaken, pls let me know (preferably with some sort of documentation from CPF instead of "i think" "i heard" "because I say so")

So is my explanation correct?

 

[lcp2000]

Actually , we can top up beyond ERS along the years.
However , this top-up cannot be withdrawn until CPF LIFE bought.
Then the money will be returned to you in the form of special monie.

 

[henrylbh]

Actually , we can top up beyond ERS along the years.
However , this top-up cannot be withdrawn until CPF LIFE bought.
Then the money will be returned to you in the form of special monie.

Where you get that info?

 

[limpoop]

aiyoh... so many half-accurate things being spread here...

firstly - at 55, RA is created. It will be funded by SA up to FRS. If SA not enough, it will take from OA. AFTER it is funded up to FRS, THEN you get to decide BRS or FRS or ERS. If FRS - no further action from you. IF ERS - transfer additional funds from SA, if not enough then OA (or cash if you are freaking cash-rich). If BRS, pledge property and WITHDRAW from RA the appropriate amt. This amt will NOT go back to SA or OA, it has to come out as cash.

secondly - after 55, if you cash top up to RA, there is NO WAY to withdraw that as cash. once it goes into RA, it will be earmarked for CPF LIFE. there's no known way to get it out (except dying or being as good as dead). cash top up to OA is a different story. don't confuse the two. btw, after 55, there's no way to do cash top up to SA (except VC), so don't dream of earning 4% from CPF Board

source of my info: CPF FAQ, CPF@55 Booklet

this is based on my current understanding of how CPF@55 works. If I'm mistaken, pls let me know (preferably with some sort of documentation from CPF instead of "i think" "i heard" "because I say so")

one way to get 100% out + accrued interests is to renounce your pink IC like all PRs or foreigners when they leave SG

 

[BBCWatcher]

one way to get 100% out + accrued interests is to renounce your pink IC like all PRs or foreigners when they leave SG

There is another way. Quoting from the CPF LIFE FAQ:

Q: Can I be excluded from CPF LIFE if I already have a personal annuity or a pension?

A: If you are a pensioner receiving monthly pension or you have bought life annuity using cash, you may be fully exempted from setting aside the Full Retirement Sum in your Retirement Account and need not join CPF LIFE.

To apply for an exemption, please contact us for assessment."

I think you have to arrange that exemption before age 55, but I'm not 100% sure about that. Also, that's not an exemption from CPF. You would still have funds in your various accounts, subject to conventional withdrawal rules. You just wouldn't be required to participate in the CPF LIFE annuity part of CPF if you qualify.

I think entitled retirement benefits from a foreign social security system can qualify. Presumably CPF would look at the quality of those benefits in its assessment. For example, if a Singaporean worked five years in the United States, five years in France, and has a small pension from Company X, then he/she would be able to collect three retirement income streams: U.S. Social Security, benefits from the French system, and the private Company X pension. (The U.S. and France have a security treaty, and they can each count work histories in the other country in order to calculate benefits. The U.S., for example, ordinarily requires contributions within any 10 calendar years, but the U.S. can count contributions in treaty countries also. Same with France, so the worker can collect from both systems, with each system calculating/adjusting the benefit accordingly.) Those three retirement income streams in this example might, in total, equal or exceed the CPF LIFE annuity income stream, and CPF might grant an exemption.

 

[lcp2000]

Where you get that info?

Below are my questions and replies from CPF

Q1) At the age 65, if I select CPF LIFE Standard, all my RA will be empty in which the monie will be transferred to long life fund. Is it correct? Then can I continue to top up equivalent amount of monie into RA since it is empty?

A) Yes, all the monies in your Retirement Account (RA) will be used toward your CPF LIFE plan. We will deduct the monies in your RA and credit the monies to the Lifelong Income Fund. If you have the available topping-up limit in your RA, you may then consider topping-up your RA up to the prevailing Enhanced Retirement Sum (ERS).

Q2) Let’s say after age 65 and CPF LIFE STANDARD was already purchased. I continue to Top up the RA and decide not buy extra CPF LIFE, can I leave it there to continue to earn 4% interest? If I want to withdraw the monies, when and how to withdraw?

A)When you make top-ups up to the RA after joining CPF LIFE, you can either choose to receive the monies in the form of Additional Monthly Payouts (AMP) together with your LIFE payout or you can purchase an additional annuity for your LIFE plan.

For the first option, you do not have to submit any application to have the AMP paid out to you together with your LIFE payout. This process will be done automatically and you will be informed by the Board in writing.

This would mean that you can choose to leave the monies in the RA to earn the interest of 4% per annum and still receive these monies in the form of AMP.

Please note that the topped up monies are meant for your retirement needs. Therefore, you cannot apply to withdraw the top-up monies:
(a) for payment of education, investments, insurance, housing, etc;
(b) by pledging his property in lieu of the Full Retirement Sum; and
(c) via exemption from the Retirement Sum Scheme.

Q3) Let say, at the age of 55, Retirement Account was created and Monie will be transferred from SA+OA to RA until FRS reached. I understand that I can top up to ERS. If I want to top up exceed ERS since I want to get more payout or buy extra annuity at the age 65, Is it Possible?

A)Yes, your understanding is correct on how the RA is created at 55 by making up the Full Retirement Sum (FRS).

Members aged 55 and above, like yourself, can make top-ups to the RA only up to the prevailing Enhanced Retirement Sum (ERS). Any top-ups beyond the ERS will be refunded to you accordingly.

Nonetheless, you can continue to make top-ups to your RA in the subsequent years up to the prevailing ERS. The following table shows the prevailing ERS from 2016 to 2020:

YEAR ERS
2016 $241,500
2017 $249,000
2018 $256,500
2019 $264,000
2020 $271,500

Q4) After Age 65, my money already use for CPF LIFE. I would like to Top up my RA to earn higher interest , is it Possible? If I want to use this Monie to buy extra annuity, is it Possible?

A)Yes, you can still continue to make top-ups to your RA as long as you have the available topping-up limit.

Your topping-up limit is the difference between the prevailing ERS and the RA balance*.
*“RA balance” refers to the cash set aside in the RA, excluding amounts such as interest earned, any government grants received and amounts withdrawn.

You can follow these steps to check the topping-up limit via our online services:
1) Log in to my cpf Online Services (You will need to key in your SingPass ID and Password.).
2) Click on “My Messages” on the left-hand navigation menu.
3) Under “Retirement”, refer to “Retirement Sum Topping-Up Scheme”. You will be able to see this message: “You and your loved ones can help enhance your financial security by topping up your Retirement Account using cash or CPF savings. Your topping-up limit is $__________.”.

By making this top-up to your RA, you can then purchase an additional annuity for your LIFE plan to enjoy higher annuity payouts.



General Enquiry
Q1) How many Annuity can a member apply? for eg. at the age 65, buy an annuity. continue top up till 70 , buy another annuity, another top up till 76, buy another annuity. Is it Possible?

A)As long as you have the available topping-up limit, you can purchase multiple additional annuities for your LIFE plan at any age and time as you wish to.

 

[henrylbh]

Actually , we can top up beyond ERS along the years.
However , this top-up cannot be withdrawn until CPF LIFE bought.
Then the money will be returned to you in the form of special monie.

You can only top up RA to ERS to prevailing ERS and not beyond.

Anyway thanks for sharing the interesting info that you got from CPF.

However, you may want to clarify "all the monies in your Retirement Account (RA) will be used toward your CPF LIFE plan" when you choose CPF Life plan at 65 (or later as you are given up 70 to decide). All monies could mean FRS plus top-ups to ERS and that may not meet what you have in mind in Q4.

Below are my questions and replies from CPF

Q1) At the age 65, if I select CPF LIFE Standard, all my RA will be empty in which the monie will be transferred to long life fund. Is it correct? Then can I continue to top up equivalent amount of monie into RA since it is empty?

A) Yes, all the monies in your Retirement Account (RA) will be used toward your CPF LIFE plan. We will deduct the monies in your RA and credit the monies to the Lifelong Income Fund. If you have the available topping-up limit in your RA, you may then consider topping-up your RA up to the prevailing Enhanced Retirement Sum (ERS).

Q2) Let’s say after age 65 and CPF LIFE STANDARD was already purchased. I continue to Top up the RA and decide not buy extra CPF LIFE, can I leave it there to continue to earn 4% interest? If I want to withdraw the monies, when and how to withdraw?

A)When you make top-ups up to the RA after joining CPF LIFE, you can either choose to receive the monies in the form of Additional Monthly Payouts (AMP) together with your LIFE payout or you can purchase an additional annuity for your LIFE plan.

For the first option, you do not have to submit any application to have the AMP paid out to you together with your LIFE payout. This process will be done automatically and you will be informed by the Board in writing.

This would mean that you can choose to leave the monies in the RA to earn the interest of 4% per annum and still receive these monies in the form of AMP.

Please note that the topped up monies are meant for your retirement needs. Therefore, you cannot apply to withdraw the top-up monies:
(a) for payment of education, investments, insurance, housing, etc;
(b) by pledging his property in lieu of the Full Retirement Sum; and
(c) via exemption from the Retirement Sum Scheme.

Q3) Let say, at the age of 55, Retirement Account was created and Monie will be transferred from SA+OA to RA until FRS reached. I understand that I can top up to ERS. If I want to top up exceed ERS since I want to get more payout or buy extra annuity at the age 65, Is it Possible?

A)Yes, your understanding is correct on how the RA is created at 55 by making up the Full Retirement Sum (FRS).

Members aged 55 and above, like yourself, can make top-ups to the RA only up to the prevailing Enhanced Retirement Sum (ERS). Any top-ups beyond the ERS will be refunded to you accordingly.

Nonetheless, you can continue to make top-ups to your RA in the subsequent years up to the prevailing ERS. The following table shows the prevailing ERS from 2016 to 2020:

YEAR ERS
2016 $241,500
2017 $249,000
2018 $256,500
2019 $264,000
2020 $271,500

Q4) After Age 65, my money already use for CPF LIFE. I would like to Top up my RA to earn higher interest , is it Possible? If I want to use this Monie to buy extra annuity, is it Possible?

A)Yes, you can still continue to make top-ups to your RA as long as you have the available topping-up limit.

Your topping-up limit is the difference between the prevailing ERS and the RA balance*.
*“RA balance” refers to the cash set aside in the RA, excluding amounts such as interest earned, any government grants received and amounts withdrawn.


General Enquiry
Q1) How many Annuity can a member apply? for eg. at the age 65, buy an annuity. continue top up till 70 , buy another annuity, another top up till 76, buy another annuity. Is it Possible?

A)As long as you have the available topping-up limit, you can purchase multiple additional annuities for your LIFE plan at any age and time as you wish to.

 

[lcp2000]

You can only top up RA to ERS to prevailing ERS and not beyond.

Anyway thanks for sharing the interesting info that you got from CPF.

However, you may want to clarify "all the monies in your Retirement Account (RA) will be used toward your CPF LIFE plan" when you choose CPF Life plan at 65 (or later as you are given up 70 to decide). All monies could mean FRS plus top-ups to ERS and that may not meet what you have in mind in Q4.

henrylbh, thanks.
I just wanted to share what I know to others since there are a few people are quite happy with Minimum Sum Scheme.
I think I overlooked the info.
Anyway , that's OK for me since I will only opt for CPF LIfe Standard.

 

[henrylbh]

For me -

If FRS + top-ups to ERS = CPF Life, no.
If FRS = CPF Life and top-ups to ERS remains in RA, yes.

 

[qhong61]

For me -

If FRS + top-ups to ERS = CPF Life, no.
If FRS = CPF Life and top-ups to ERS remains in RA, yes.

If topup remains in RA, means we can still withdraw?

 

[lcp2000]

If topup remains in RA, means we can still withdraw?

You can't withdraw completely.
CPF will pay out monthly monie as extra payout on top of CPF LIFE payout.
You can consider this extra payout as Mimimun Sum Scheme