CPF SA Shielding hack - RIP (Obsolete)

[royalmix]

The page isn't written very clearly

It seems to suggest that I can have Ers at the 55 in my RA, earns 10Y interest of 4% and then pledge my property to maintain BRS in my RA and withdraw the balance at 65

This had been discussed many times in the past, exclude topups!

 

[royalmix]

Not if this has been asked before- anyone knows if I were to choose Basic plan for CPF Life, how much is the monthly payout? Assuming at 1) FRS and 2) BRS (with pledged ppty)?

Go play with the calculator!

https://www.cpf.gov.sg/eSvc/Web/Schemes/LifeEstimator/LifeEstimator

 

[fr33d0m]

Going by your understanding it means from age 55 to before 65 any amount above FRS can be taken out correct? RA interest is given once a year like existing CPF OA SA correct? But this interest cannot take out. Then I wonder the extra amount of monies above FRS you put inside is to get the 4% interest which cannot be taken out?

Hmmm why bother then may as well that monies take and ownself try invest to see can get above 4%. After all your RA already have FRS so confirm when cpf life starts you got monthly income

Only interest earn in RA, government grants and top up for retirement purpose can’t be withdrawn. Certainly you can draw down the FRS which CPF moves from your SA/OA to RA. Otherwise, please explain how it is possible that one pledge property and draw down to BRS.

 

[highsulphur]

This had been discussed many times in the past, exclude topups!

Ok understand now

 

[fr33d0m]

Every of your subsequent posts about withdrawal from RA after 55 before CPF Life starts is "Fake News"!

Pls cite the exact CPF rules to support your understanding from what you read!

I will only reply to you this one time.

explain to me how one can pledge property and draw down to BRS if it is impossible for one to withdraw from CPF RA.

please cite the rules saying that you have to make the decision when you turn 55 and must withdraw all above BRS

 

[Guojing88]

Please highlight the “can’t withdraw anything from that for 10 years”. at minimum, I should be able to pledge my property and draw down to BRS. Please explain.

"Generally, when you turn 55, you can withdraw at least $5,000 or any amount in excess after setting aside your Full Retirement Sum (FRS).

If you are born in 1958 and after, when you turn 65, you can withdraw an additional amount of up to 20% of your retirement savings. See more details on the withdrawal rules."
======

Of course, if what you want to do is to only set aside BRS, you will have to pledge property, that decision must also be made at 55, but that will be a different scenario from setting aside FRS/ERS.

I don't think the system allows you to change your mind in the 10 years from 55 to 65, i.e, FRS at 55 then change to BRS then.

 

[fr33d0m]

"Generally, when you turn 55, you can withdraw at least $5,000 or any amount in excess after setting aside your Full Retirement Sum (FRS).

If you are born in 1958 and after, when you turn 65, you can withdraw an additional amount of up to 20% of your retirement savings. See more details on the withdrawal rules."
======

Of course, if what you want to do is to only set aside BRS, you will have to pledge property, that decision must also be made at 55, but that will be a different scenario from setting aside FRS/ERS.

I don't think the system allows you to change your mind in the 10 years from 55 to 65, i.e, FRS at 55 then change to BRS then.

please cite the rule that I have to make the decision at 55.

the general understanding is that you can pledge your property any time between 55 and before CPF LIFE payout starts and you can withdraw any time in-between. Where does the rule says only once and only at 55?

 

[Guojing88]

please cite the rule that I have to make the decision at 55.

the general understanding is that you can pledge your property any time between 55 and before CPF LIFE payout starts and you can withdraw any time in-between. Where does the rule says only once and only at 55?

See question 1

https://www.cpf.gov.sg/member/infohub/educational-resources/can-you-withdraw-your-cpf-at-55

Can you withdraw your savings at age 55?​

For those born in 1958 or after, you can also withdraw up to $5,000 unconditionally from age 55. Once you have set aside your FRS, you can also withdraw any remaining OA and SA savings. Property owners in Singapore with a remaining lease that lasts you up to at least age 95 can also withdraw their Retirement Account (RA) savings above their Basic Retirement Sum (BRS).

If you pledge your property, you can withdraw your CPF savings above your BRS. However when you decide to sell your property, you must refund proceeds to your CPF and restore your RA up to the FRS.

 

[royalmix]

You can do a property pledge to withdraw down to BRS (from FRS excluding topups) anytime after 55, even after you start CPF Life provided you have the monies in RA. Who will have monies in RA after CPF Life starts? The Basic Planners! Open to you but not advisable to do after CPF LIfe starts as there are potential complications, if you have emergency you still have a choice!

You can do a partial withdrawal and do subsequent withdrawals provided you still qualify and have monies in RA by reapplying again and again!

Check the details at CPFB website. New website I dunno how to find the rules, waste of time, and not applicable to me too!

Always do your own due diligence, there are simply too many misinformation being shared here! That's why it is "called" obsolete!

Good luck, I will not spend time in an obsolete thread!

 

[fr33d0m]

The page isn't written very clearly

It seems to suggest that I can have Ers at the 55 in my RA, earns 10Y interest of 4% and then pledge my property to maintain BRS in my RA and withdraw the balance at 65

not all balance above BRS. interest earned, government grants and top-up can't be withdrawn

 

[fr33d0m]

See question 1

https://www.cpf.gov.sg/member/infohub/educational-resources/can-you-withdraw-your-cpf-at-55

Can you withdraw your savings at age 55?​

For those born in 1958 or after, you can also withdraw up to $5,000 unconditionally from age 55. Once you have set aside your FRS, you can also withdraw any remaining OA and SA savings. Property owners in Singapore with a remaining lease that lasts you up to at least age 95 can also withdraw their Retirement Account (RA) savings above their Basic Retirement Sum (BRS).

If you pledge your property, you can withdraw your CPF savings above your BRS. However when you decide to sell your property, you must refund proceeds to your CPF and restore your RA up to the FRS.

"you can" and "you can only" are different. I pity your English teachers.

it has always been that you can pledge anytime from 55 til moments before CPF LIFE payout starts.

 

[Guojing88]

it has always been that you can pledge anytime from 55 til moments before CPF LIFE payout starts.

I never heard of anyone able to do this. Do you have any source for this?

 

[fr33d0m]

I never heard of anyone able to do this. Do you have any source for this?

so you have evidence that someone was rejected for doing that?

nonetheless, I will try to find the exact rules and show you.

 

[QinWei]

"you can" and "you can only" are different. I pity your English teachers.

dont be rude lah

not all have good eng and not all in this forum. get to meet even BRS decades down near to their retirement age (even if the age is then 67yo)

as someone rightfully pointed out, sometimes the CPFB items seemed so complicated

anyway, it is gd news that SA is closed soon! so that all focuses on just one account of RA
Lesser to think

even @Guojing88 seemed so confused , w the article attached

Can you withdraw your savings at age 55?​

For those born in 1958 or after, you can also withdraw up to $5,000 unconditionally from age 55.
https://www.cpf.gov.sg/member/infohub/educational-resources/can-you-withdraw-your-cpf-at-55
If you pledge your property, you can withdraw your CPF savings above your BRS. However when you decide to sell your property, you must refund proceeds to your CPF and restore your RA up to the FRS.





I believe after all the changes, the govt will Surely introduce new guidelines and rules to the ONLY RA left behind

 

[fr33d0m]

let me cite the CPF website for you.

https://www.cpf.gov.sg/member/faq/r...ithdrawals/when-can-i-withdraw-my-cpf-savings

When can I withdraw my CPF savings?
You can apply to withdraw a portion of your CPF savings anytime from 55 whenever you have immediate needs for cash. There is no limit to the number of withdrawals you can make. Find out how much you can withdraw.

If you do not have an immediate need, you can leave your savings in your CPF accounts as rainy day funds while enjoying risk-free interest rates* of up to 6% per annum, and withdraw them only when you need to. With PayNow, you can generally receive your withdrawn monies almost instantly.

* Based on the current 4% interest rate floor on Special and Retirement Account monies.

 

[Guojing88]

so you have evidence that someone was rejected for doing that?

nonetheless, I will try to find the exact rules and show you.

My understanding of CPF is this

At age 55, you make a decision how much to set aside on your RA: BRS, FRS or ERS.

At age 65, you make a decision on how to draw out the RA: Basic, Standard or Escalating.

 

[Guojing88]

let me cite the CPF website for you.

https://www.cpf.gov.sg/member/faq/r...ithdrawals/when-can-i-withdraw-my-cpf-savings

When can I withdraw my CPF savings?
You can apply to withdraw a portion of your CPF savings anytime from 55 whenever you have immediate needs for cash. There is no limit to the number of withdrawals you can make. Find out how much you can withdraw.

If you do not have an immediate need, you can leave your savings in your CPF accounts as rainy day funds while enjoying risk-free interest rates* of up to 6% per annum, and withdraw them only when you need to. With PayNow, you can generally receive your withdrawn monies almost instantly.

* Based on the current 4% interest rate floor on Special and Retirement Account monies.

This is referring to OA/SA, not RA.

Of course this was before Budget 2024. Now, it will only be OA.

 

[QinWei]

let me cite the CPF website for you.

https://www.cpf.gov.sg/member/faq/r...ithdrawals/when-can-i-withdraw-my-cpf-savings

When can I withdraw my CPF savings?
You can apply to withdraw a portion of your CPF savings anytime from 55 whenever you have immediate needs for cash. There is no limit to the number of withdrawals you can make. Find out how much you can withdraw.

If you do not have an immediate need, you can leave your savings in your CPF accounts as rainy day funds while enjoying risk-free interest rates* of up to 6% per annum, and withdraw them only when you need to. With PayNow, you can generally receive your withdrawn monies almost instantly.

* Based on the current 4% interest rate floor on Special and Retirement Account monies.

it s better to add in this:
you can withdraw at least $5,000 or any amount in excess after setting aside your Full Retirement Sum (FRS).

 

[QinWei]

This is referring to OA/SA, not RA.

Of course this was before Budget 2024. Now, it will only be OA.

yes OA

For RA if u wish :
can also apply to withdraw your Retirement Account savings down to your Basic Retirement Sum (BRS) if you own a property in Singapore with remaining lease that lasts you until you are 95 or older. You have the flexibility to set aside your FRS with a mixture of property (up to half your FRS, which is the BRS) and cash.

 

[fr33d0m]

My understanding of CPF is this

At age 55, you make a decision how much to set aside on your RA: BRS, FRS or ERS.

At age 65, you make a decision on how to draw out the RA: Basic, Standard or Escalating.

very wrong. please read CPF website again.