CPF Retirement Sum Scheme

[henrylbh]

Bargin's posts are very confusing, but here are some possibilities. I hope Bargin will clarify his/her situation.

Any you make him even more confused

 

[AlanKohCD]

Just like to know
If you are 65 years old and started to withdrawn from the RA account. The CPF Basic Sum monthly.
In this case at 65 year old . Do your amount in the RA still enjoy a compound interest of 5% to 6% ?

 

[reddevil0728]

Just like to know
If you are 65 years old and started to withdrawn from the RA account. The CPF Basic Sum monthly.
In this case at 65 year old . Do your amount in the RA still enjoy a compound interest of 5% to 6% ?

Yea why not? It is applied to the account what

 

[AlanKohCD]

Yea why not? It is applied to the account what

My understanding is RA account interest of 5% to 6% will stop after you start your Retirement Sum withdrawal.
You can start at 65 yrs old or delay till 70 yrs old.

 

[dork32]

My understanding is RA account interest of 5% to 6% will stop after you start your Retirement Sum withdrawal.
You can start at 65 yrs old or delay till 70 yrs old.

if you are on cpf life basic. your ra continues to earn the interest you state.

if you are on cpf life standard, you have 0 ra. it does not matter what is rate they offer.

 

[ctan84]

Redigging this old thread to ask about RSS for an old relative. He's 72 this year, under RSS and in reasonably poor health. Has about $100k in RA and very prone to get rich quick scams. Hence I just want to confirm whatever's in the RA for RSS scheme cannot be withdrawn in bulk lump sum right? Basically that 100k in the RA is paid out as a monthly amount to be as near age 90 for him as possible? Can someone enlighten me on RSS scheme?

 

[reddevil0728]

Redigging this old thread to ask about RSS for an old relative. He's 72 this year, under RSS and in reasonably poor health. Has about $100k in RA and very prone to get rich quick scams. Hence I just want to confirm whatever's in the RA for RSS scheme cannot be withdrawn in bulk lump sum right? Basically that 100k in the RA is paid out as a monthly amount to be as near age 90 for him as possible? Can someone enlighten me on RSS scheme?

https://www.cpf.gov.sg/service/article/can-i-withdraw-my-savings-earlier-if-i-am-sick

technically can be earlier...

 

[ctan84]

https://www.cpf.gov.sg/service/article/can-i-withdraw-my-savings-earlier-if-i-am-sick

technically can be earlier...

Ok the health not jiat lat until the 3 conditions yet, but also best not to let him know otherwise any premature withdrawal into "get rich quick investments" will just increase the financial burden on his children.

 

[BBCWatcher]

Ok the health not jiat lat until the 3 conditions yet, but also best not to let him know otherwise any premature withdrawal into "get rich quick investments" will just increase the financial burden on his children.

His other CPF savings (OA and SA, but not MA) are probably available for lump sum withdrawal, assuming he has a property pledge/charge in place and assuming he has some funds in OA or SA. He may also be able to withdraw a certain percentage of his RA balance in a lump sum. But that'll depend on whether he's done so in the past, and how much.

He may wish to activate a CPF Withdrawal Lock. That'll insert a "speed bump" (a 12 hour delay) before allowing an online withdrawal. In 12 hours he might sober up, literally or figuratively. Withdrawing any OA/SA dollars then redepositing them in his RA would restrict his ability to withdraw those OA/SA dollars in a lump sum, and the person(s) (children for example) redepositing those dollars may qualify for tax relief, up to tax relief limits.

 

[ctan84]

His other CPF savings (OA and SA, but not MA) are probably available for lump sum withdrawal, assuming he has a property pledge/charge in place and assuming he has some funds in OA or SA. He may also be able to withdraw a certain percentage of his RA balance in a lump sum. But that'll depend on whether he's done so in the past, and how much.

He may wish to activate a CPF Withdrawal Lock. That'll insert a "speed bump" (a 12 hour delay) before allowing an online withdrawal. In 12 hours he might sober up, literally or figuratively. Withdrawing any OA/SA dollars then redepositing them in his RA would restrict his ability to withdraw those OA/SA dollars in a lump sum, and the person(s) (children for example) redepositing those dollars may qualify for tax relief, up to tax relief limits.

No property pledged coz already sold and "gambled" away most of the proceeds via "investments" liao. Ok, so this means I can safely conclude even for RSS, the RA cannot be withdrawn in lump sum ? He turned 55 in 2007 when the FRS was just $99+K, as of last night his RA has about $119k.

 

[BBCWatcher]

No property pledged coz already sold and "gambled" away most of the proceeds via "investments" liao.

Fabulous.

Ok, so this means I can safely conclude even for RSS, the RA cannot be withdrawn in lump sum ?

It's possible he can withdraw a portion of his RA in a lump sum.

He turned 55 in 2007 when the FRS was just $99+K, as of last night his RA has about $119k.

He can probably withdraw any OA and SA dollars he has.

His CPF dashboard(s) will display how much he can withdraw. Maybe that information is not helpful.

 

[queriesonforum]

It's quite sad when we cannot see or refer to the OA-RA, SA-RA and RA amount as well as the amounts at age 55 in OA and SA on CPF app when CPF is using the amount at age 55 as benchmarking purposes

 

[Shalom_555]

You can (and probably should) love a larger RA balance yet hate tapping 4.0% interest earning SA dollars to fund RA.

Just wondering.. how monthly interest is computed if I transfer SA to RA eg. transfer SA $50k to RA on 26 Dec. I suppose I will lose Nov interest for SA account and will only earn interest in RA in Jan 2025. If so, no matter when I transfer the funds from SA. I will inevitably lose 1 mth interest. Pls advise

 

[reddevil0728]

Just wondering.. how monthly interest is computed if I transfer SA to RA eg. transfer SA $50k to RA on 26 Dec. I suppose I will lose Nov interest for SA account and will only earn interest in RA in Jan 2025. If so, no matter when I transfer the funds from SA. I will inevitably lose 1 mth interest. Pls advise

For CPF transfers of existing CPF savings, you will start earning interest in your account from this month. However, if the CPF savings are fresh injections, it will start earning interest in your account from the next month.

https://www.cpf.gov.sg/service/arti...ial-retirement-account-start-to-earn-interest

 

[terence2112]

Hi all, just wanna seek your opinion. Reaching 39 in Dec and I’ve just manage to set aside the full FRS in my SA this year.

considering that the BHS will increase in Jan and that my FRS is met, should I still be topping up BHS so that it overflows to OA?

 

[reddevil0728]

Hi all, just wanna seek your opinion. Reaching 39 in Dec and I’ve just manage to set aside the full FRS in my SA this year.

considering that the BHS will increase in Jan and that my FRS is met, should I still be topping up BHS so that it overflows to OA?

Yea why not. There’s still tax relief for the MA top up

 

[Potent]

If an individual has hit the ceiling for sa and ma but suddenly decided not to work anymore. Without touching any amount in ma and sa, will the yearly interest cover the annual ceiling raise?

 

[reddevil0728]

If an individual has hit the ceiling for sa and ma but suddenly decided not to work anymore. Without touching any amount in ma and sa, will the yearly interest cover the annual ceiling raise?

the MA interest will not be credited to MA, but flow to OA. hence the gap will open up

 

[lzydata]

If an individual has hit the ceiling for sa and ma but suddenly decided not to work anymore. Without touching any amount in ma and sa, will the yearly interest cover the annual ceiling raise?

Based on the future FRSes announced up to 2027, where it will be $228,200, the annual growth rate from 2025-7 is around 3.5%. Therefore, if you already have the FRS in your SA, then the interest earned should cover the increase.

https://www.cpf.gov.sg/member/infohub/educational-resources/what-is-the-cpf-retirement-sum

For the BHS, future amounts are not announced yet so we only have the historical increases. I calculated that year-on-year growth rates from 2017 to 2024 to average 4.63%.

The current interest rate for MA is 4.14% pa and the government has maintained the floor rate at 4% pa. Also, there is additional interest earned on the combined balance up to $60k. On the other hand, there will be Medisave withdrawals for everyone, at the least for Medishield Life premiums. So whether the interest earned covers the increase will depend on each person's spending from Medisave.

https://www.cpf.gov.sg/service/article/what-is-the-basic-healthcare-sum

 

[reddevil0728]

Based on the future FRSes announced up to 2027, where it will be $228,200, the annual growth rate from 2025-7 is around 3.5%. Therefore, if you already have the FRS in your SA, then the interest earned should cover the increase.

https://www.cpf.gov.sg/member/infohub/educational-resources/what-is-the-cpf-retirement-sum

For the BRS, future amounts are not announced yet so we only have the historical increases. I calculated that year-on-year growth rates from 2017 to 2024 to average 4.63%.

The current interest rate for MA is 4.14% pa and the government has maintained the floor rate at 4% pa. Also, there is additional interest earned on the combined balance up to $60k. On the other hand, there will be Medisave withdrawals for everyone, at the least for Medishield Life premiums. So whether the interest earned covers the increase will depend on each person's spending from Medisave.

https://www.cpf.gov.sg/service/article/what-is-the-basic-healthcare-sum

You have a typo there should be BHS. not BRS