CPF SA Shielding hack - RIP (Obsolete)

[QinWei]

If not enough to reach FRS at 55, one is still able to withdraw $5k.

THAT ALot knew about it and done it incld my mum

 

[TheCivilian]

You can't withdraw from RA.

The only time you see money coming out of RA is the monthly payout when you reached 65 (you can choose to delay though).

Whatever you top-up to RA will result in a higher monthly payout.

Another scenario you see money coming out of RA is when you up-the-lorry. In this case, whatever left of the FRS in the RA will be passed to your nominee less interest. The interest earned in the RA will go back to the pool.

 

[fr33d0m]

You can't withdraw from RA.

The only time you see money coming out of RA is the monthly payout when you reached 65 (you can choose to delay though).

Whatever you top-up to RA will result in a higher monthly payout.

Another scenario you see money coming out of RA is when you up-the-lorry. In this case, whatever left of the FRS in the RA will be passed to your nominee less interest. The interest earned in the RA will go back to the pool.

Such authoritative statement without any backing

Please do share your example or your experience.

 

[luckygal]

You can't withdraw from RA.

The only time you see money coming out of RA is the monthly payout when you reached 65 (you can choose to delay though).

Whatever you top-up to RA will result in a higher monthly payout.

Another scenario you see money coming out of RA is when you up-the-lorry. In this case, whatever left of the FRS in the RA will be passed to your nominee less interest. The interest earned in the RA will go back to the pool.

Go back to the pool means the beneficiary will not receive?

 

[jeffong]

You can't withdraw from RA.

The only time you see money coming out of RA is the monthly payout when you reached 65 (you can choose to delay though).

Whatever you top-up to RA will result in a higher monthly payout.

Another scenario you see money coming out of RA is when you up-the-lorry. In this case, whatever left of the FRS in the RA will be passed to your nominee less interest. The interest earned in the RA will go back to the pool.

Found this example given where it does reflect the ability to withdraw 20% of RA after 65
https://www.cpf.gov.sg/member/faq/r...awals/how-is-the-withdrawable-amount-computed

Only problem with this is that there's nothing to stop MIW from removing this ability 1 day before you turn 65... LOL!!!

 

[DevilPlate]

if you don't pledge your property or you don't have extra in RA beyond FRS(in original amount, excluding interest, government grants, top-ups), you can't withdraw.

maybe you can help to test after you top up CPF RA, can you withdraw from CPF RA?

Top up RA is irreversible.

 

[fr33d0m]

the 20% additional from 65 is only a recent policy to enable people to withdraw more saving from CPF RA.

It is not at risk.

Worst case, one can pledge property and "shield" max BRS til CPF LIFE payout starts, I guess.

scenario will be:

1. forms CPF RA with FRS, top up more with intended CPF LIFE premium(e.g. 3xBRS if you want FRS for CPF LIFE, 4xBRS if you want 3xBRS for CPF LIFE)

2. pledge property and make max BRS withdrawable(the shield) but earns 4%+ interest.

3. draw down the shielded amount at will

 

[fr33d0m]

Top up RA is irreversible.

may I know where it states?

all CPF examples don't include cases that you top up after FRS in CPF RA.

anyway, reversal is not what I said. Whether it enables one to withdraw the original FRS which is withdrawable(e.g. not interest, government grants or top-ups)

 

[DevilPlate]

may I know where it states?

all CPF examples don't include cases that you top up after FRS in CPF RA.

I tot u already knew it. U also said it before that any top ups cannot be withdrawn….so many examples above.
or do u mean smthing else?

 

[QinWei]

Top up RA is irreversible.

i think u meant all topups

Top-ups are all irreversible. Thus, they cannot be withdrawn for other purposes

https://www.cpf.gov.sg/member/infoh...top-up-ra-to-ers-for-cpf-life-theheartlandboy

Cons of topping up RA to ERS​

1. Irreversible move

When you top up your RA to ERS, this is considered as an irreversible move. This signals your willingness to participate and extract more benefits from the CPF LIFE scheme beyond the default option.

If you have used cash to top up your RA, you suffer an immediate loss of liquidity as they get locked up in the RA until payout eligibility age. Similarly, if you have used funds in your OA or SA to perform the RA top-up, you lose your ability to withdraw them

 

[NTTDoCoMo]

may I know where it states?

all CPF examples don't include cases that you top up after FRS in CPF RA.

anyway, reversal is not what I said. Whether it enables one to withdraw the original FRS which is withdrawable(e.g. not interest, government grants or top-ups)

Are you looking for $ 20,000 (B) ?

Someone shared the link above.

https://www.cpf.gov.sg/member/faq/r...awals/how-is-the-withdrawable-amount-computed

 

[fr33d0m]

I tot u already knew it. U also said it before that any top ups cannot be withdrawn….so many examples above.
or do u mean smthing else?

let me re-phrase. top-ups can't be reversed or drawn down. Can it substitute the drawable to fultill FRS requirement in CPF RA. In that case, the original FRS will be free to draw down.

 

[fr33d0m]

Are you looking for $ 20,000 (B) ?

Someone shared the link above.

https://www.cpf.gov.sg/member/faq/r...awals/how-is-the-withdrawable-amount-computed

this link is only about the additional 20% after 65.

the rules between 55 and 65 is you can withdraw from CPF RA after you fulfill the FRS in CPF RA.

assuming:

1. at 55, one has FRS in RA
2. at 56, one tops up 10K to CPF RA.

one fulfills FRS in CPF RA even after one draws down 10K from CPF RA, right? with FRS at RA inception, one has FRS not belonging to interest, government grants and top-ups.


https://www.cpf.gov.sg/member/faq/r...thdrawals/how-much-cpf-savings-can-i-withdraw

How much CPF savings can I withdraw?
You can check the amount you can withdraw by logging in to your Retirement dashboard.

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).

 

[highsulphur]

Need to call cpf to clarify the 20% withdrawal at 65

 

[fr33d0m]

Need to call cpf to clarify the 20% withdrawal at 65

what's confusing about the additional 20%?

assuming you fulfill FRS at 55 when RA is created and no property pledge

it is (FRS - (all top-ups to SA originally marked for retirement + interest earned in SA before transferring to CPF RA)) * 20% - 5000

correction: interest is allowed to withdraw.

should be (Balance at 65 - all top-ups original amount - government grants original amount) * 20% - 5000

 

[NTTDoCoMo]

this link is only about the additional 20% after 65.

the rules between 55 and 65 is you can withdraw from CPF RA after you fulfill the FRS in CPF RA.

assuming:

1. at 55, one has FRS in RA
2. at 56, one tops up 10K to CPF RA.

one fulfills FRS in CPF RA even after one draws down 10K from CPF RA, right? with FRS at RA inception, one has FRS not belonging to interest, government grants and top-ups.


https://www.cpf.gov.sg/member/faq/r...thdrawals/how-much-cpf-savings-can-i-withdraw

Below is from 55, the table only state RA withdrawal with property pledging.

Your question is more on "Freely withdraw of RA amount above FRS and exclusions" and "Withdrawing of displaced FRS with Topup amount".

 

[fr33d0m]

Below is from 55, the table only state RA withdrawal with property pledging.

Your question is more on "Freely withdraw of RA amount above FRS and exclusions" and "Withdrawing of displaced FRS with Topup amount".

yes. is there such rule of "displacing FRS with top up amount"?

 

[Guojing88]

yes. is there such rule of "displacing FRS with top up amount"?

You really like to complicate issues.

top up Ra, beyond the frs, is to improve your cpf life payout.

those top ups are irreversible.


Read HWZ Forum Rules!

 

[fr33d0m]

the new "shield" with RA

1. form CPF RA with FRS
2. pledge property to make max BRS withdrawable
3. 20% of interest of top-ups is withdrawable upon 65, so top up more if you are firm believer of CPF LIFE.

in my simple estimate with 4xBRS at 55, should be able to withdraw 1 BRS flexibly from 55 and another 0.5 BRS from 65.

 

[sohguanh]

the new "shield" with RA

3. 20% of interest of top-ups is withdrawable upon 65, so top up more if you are firm believer of CPF LIFE.

Hmmm but the top-up cannot withdraw which form the bulk of the monies besides the 20% of the interest for age 55 to 65. Note it is not all full 100% of the interest for the top-up for 10 years. To me not really a shield but yes better than zero since can take 20% of interest out at age 65