CPF Questions (minimum sum)

[djchris]

You can top up lesser amount if you receive contribution to SA. So lesser tax relief. And if wait longer, with more contribution to SA, you might end up having more than FRS in SA. At this point, we can't make top up to SA.

Do you have the math to back this? I feel it's true when you're already very close to FRS. Like next cash top up will cross FRS kind.

 

[Calthron]

Yes. I am already at SA 171k now. So I can't top up 7k, can just up 5k to hit latest FRS of 176k.

Do you have the math to back this? I feel it's true when you're already very close to FRS. Like next cash top up will cross FRS kind.

 

[cal3135]

Hitting FRS with SA is a good problem

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[djchris]

Yes. I am already at SA 171k now. So I can't top up 7k, can just up 5k to hit latest FRS of 176k.

Will follow your move when I get closer.

 

[Mecisteus]

Has anyone ever wonder about this.

In future, there will be more foreigners turning PRs and citizens joining CPF Life and contributing to the Life Income Fund.

The payouts will be dependent on the returns and pool of money.

What if all of them renounce and go back to home countries?

There will be a big drop of money in LIF.

 

[Mecisteus]

Someone deleted their post about exiting CPF Life. Then the post was deleted.

 

[tangent314]

Has anyone ever wonder about this.

In future, there will be more foreigners turning PRs and citizens joining CPF Life and contributing to the Life Income Fund.

The payouts will be dependent on the returns and pool of money.

What if all of them renounce and go back to home countries?

There will be a big drop of money in LIF.

There will be a corresponding big drop liability in the LIF also.. I don't see the problem.

 

[Mecisteus]

There will be a corresponding big drop liability in the LIF also.. I don't see the problem.

There is a problem. You may not be aware.

 

[cscs3]

There will be a corresponding big drop liability in the LIF also.. I don't see the problem.

No different from buying insurance from those major insurance company anyway.

Fo not assume insurance company and or CPF never take this into consideration. Other one should be more worry if the insurance company will last longer then the plan you purchased!

 

[henrylbh]

There is a problem. You may not be aware.

A, B and C each pays $10 into LIF. A withdrew leaving B & C. What's the problem

B also withdrew leaving C alone. What's the problem

The only problem is C is not able to get back what's his, if he uplorry early or the banker decides to keep some. Even with A & B around, this cannot help C.

Even if C lives to very old age, at most LIF becomes insolvent ... but he got back his $10. What more C wants?

 

[Mecisteus]

A, B and C each pays $10 into LIF. A withdrew leaving B & C. What's the problem

B also withdrew leaving C alone. What's the problem

The only problem is C is not able to get back what's his, if he uplorry early or the banker decides to keep some. Even with A & B around, this cannot help C.

Even if C lives to very old age, at most LIF becomes insolvent ... but he got back his $10. What more C wants?

Just think along this line.

Why no other private insurance is able to offer a longevity insurance and match or better the payouts from CPF Life?

 

[henrylbh]

No need to wonder again.

 

[a4973]

http://theindependent.sg/70-year-ol...-even-though-he-has-67562-in-his-cpf-account/

what's this about?

 

[tangent314]

Private insurers do not have access to invest the premium pool into SSGS like CPFB can. They have to invest in SGS with lower returns or in their own PAR fund which is significantly riskier.

 

[kelhot2001]

http://theindependent.sg/70-year-ol...-even-though-he-has-67562-in-his-cpf-account/

what's this about?

Main part his amount belong to MA about $50K, which is cannot be withdrawn
He left about 8K in OA, and 7k In SA, while RA left $28.78. I do believe if he write in, he should be able to take out the SA and OA amount

 

[tangent314]

http://theindependent.sg/70-year-ol...-even-though-he-has-67562-in-his-cpf-account/

what's this about?

TISG has turned their stupidity up to 110%.

His RA is almost drained - that's why the payouts will end. He still has significant OA and SA balance that he can withdraw from anytime he likes. Most of his balance is in the MA though, and that cannot be withdrawn at will.

 

[kelhot2001]

Just think along this line.

Why no other private insurance is able to offer a longevity insurance and match or better the payouts from CPF Life?

If one day CPF decide to outsource/tender their fund management for say 100 years. Private insurer will definitely able to give a better longevity insurance and match better payout as they are guarantee to take 100% of them as client. Rather than now, they can only offer to a handful of clients , how can they match the payout?

 

[henrylbh]

Main part his amount belong to MA about $50K, which is cannot be withdrawn
He left about 8K in OA, and 7k In SA, while RA left $28.78. I do believe if he write in, he should be able to take out the SA and OA amount

TISG has turned their stupidity up to 110%.

His RA is almost drained - that's why the payouts will end. He still has significant OA and SA balance that he can withdraw from anytime he likes. Most of his balance is in the MA though, and that cannot be withdrawn at will.

His monthly payout is $250 and his RA running dry at 70 meant he did not meet his cohort min sum then. It appears the payout of 250 could be the minimum he got from his RA regardless of the low amount in it at 55 that was supposed to last 20 years.

If I remember correctly. He is under the old scheme where one needs to make good shortfall in min sum (in MA and may be RA) before he could withdraw his remaining balance in SA and OA.

 

[henrylbh]

If one day CPF decide to outsource/tender their fund management for say 100 years. Private insurer will definitely able to give a better longevity insurance and match better payout as they are guarantee to take 100% of them as client. Rather than now, they can only offer to a handful of clients , how can they match the payout?

Even if 100% of RA is given to one insurer only, I doubt very much the insurer is able to give 4+1+1% and guarantee same life payout. Firstly, the insurer needs to make profit from the pool and secondly the insurer cannot invest the pool as they like. Even if they invest in equities more than bonds or fixed income instruments, there is risk of being insolvent.

 

[Mecisteus]

If one day CPF decide to outsource/tender their fund management for say 100 years. Private insurer will definitely able to give a better longevity insurance and match better payout as they are guarantee to take 100% of them as client. Rather than now, they can only offer to a handful of clients , how can they match the payout?

Why must outsource?

Private insurers can offer their own longevity insurances using cash money.

As far as I know, there is no plan that can make a lifetime payouts and at similar levels as CPF Life.