CPF SA Shielding hack - RIP (Obsolete)

[narutos]

Ok, what you topup before 55 gets 'wipeout" (the records) after 55!

What you topup after 55 will be counted. For property pledge, what is excluded includes interest on topups.

Those who shield SA/OA and topup their RA with cash will be affected.

Can you clarify your statements?
Do you mean RSTU cash topup to SA before age 55 + the interest earned which will be transfered to RA at age 55 can be withdrawn part of it with property pledge?

 

[royalmix]

Can you clarify your statements?
Do you mean RSTU cash topup to SA before age 55 + the interest earned which will be transfered to RA at age 55 can be withdrawn part of it with property pledge?

Yes, you can always write in to CPFB to double confirm. There was a lengthy discussion in this forum years back.
What you topup before 55 is reserved from being invested, locked to be transferred to RA only. After 55, new rules apply. If you topup after 55, those cannot be withdrawn for property pledge.

Property pledge is comparing RA FRS at 55 to RA BRS at 55. RA FRS is 2x RA BRS, you can withdraw 1xRA BRS

 

[narutos]

Yes, you can always write in to CPFB to double confirm. There was a lengthy discussion in this forum years back.
What you topup before 55 is reserved from being invested, locked to be transferred to RA only. After 55, new rules apply. If you topup after 55, those cannot be withdrawn for property pledge.

Property pledge is comparing RA FRS at 55 to RA BRS at 55. RA FRS is 2x RA BRS, you can withdraw 1xRA BRS

Another question...if you know.
At age 55, if the SA reserved amount (RSTU + interest earned) is larger than FRS, is it RA will be formed with just FRS amount or the SA reserved amount?

 

[royalmix]

Another question...if you know.
At age 55, if the SA reserved amount (RSTU + interest earned) is larger than FRS, is it RA will be formed with just FRS amount or the SA reserved amount?

The rules state only FRS will be transferred to RA. WIth SA to be closed next year, the excess in SA will be transferred to OA. Your monies are free to withdraw!

 

[blurpandasg2014]

With the new changes, isit better to trf more monies to SA for those not yet 55 to benefit most from the interest?

 

[limlg73]

Yes, you can always write in to CPFB to double confirm. There was a lengthy discussion in this forum years back.
What you topup before 55 is reserved from being invested, locked to be transferred to RA only. After 55, new rules apply. If you topup after 55, those cannot be withdrawn for property pledge.

Property pledge is comparing RA FRS at 55 to RA BRS at 55. RA FRS is 2x RA BRS, you can withdraw 1xRA BRS

but if what you said if true, then what CPF replied to me is wrong. Can CPF be wrong?

"Topped-up monies in the RA do not form part of the BRS when computing the amount that can be withdrawn i.e. the BRS has to be made up with non-topped up monies."

 

[royalmix]

but if what you said if true, then what CPF replied to me is wrong. Can CPF be wrong?

"Topped-up monies in the RA do not form part of the BRS when computing the amount that can be withdrawn i.e. the BRS has to be made up with non-topped up monies."

The statement is correct, topup monies in RA means you topup to RA!

 

[bigrooster]

With the new changes, isit better to trf more monies to SA for those not yet 55 to benefit most from the interest?

It may seems so, for those with still a long way to 55.

But, looking at how the recent changes took place (with this latest move to close SA, giving less than one year's notice), there is nothing that prevents them from implementing more new changes, which might derail your current plans.

 

[limlg73]

The statement is correct, topup monies in RA means you topup to RA!

please read my corresponded with CPF again. The $20k topup money was being topup before 55yo in SA.

If your CPF balance at 55 is more than $192,000:

• Year you reach 55 2022
• Full Retirement Sum (FRS) $192,000
• Your Ordinary Account (OA) and Special Account (SA) balances when you reach 55 $300,000 (includes $20,000 top-up monies)

At age 55, we will transfer the Full Retirement Sum of $192,000 from your SA and OA to your Retirement Account (RA).
You can choose to leave the FRS in your RA and withdraw the remaining amount of $108,000

• Retirement Sum in your retirement Account (RA) = $192,000
• CPF withdrawal amount from OA/SA = $108,000

If you own a property with remaining lease that can last you to at least 95 years old, you can choose to withdraw RA savings (excluding interest earned, any government grants received and top-ups made under the Retirement Sum Topping-up Scheme) above your Basic Retirement Sum (BRS) of $96,000.

Topped-up monies in the RA do not form part of the BRS when computing the amount that can be withdrawn i.e. the BRS has to be made up with non-topped up monies.

Based on your example, the maximum RA withdrawal amount is $76,000 (calculated as FRS $192,000 - BRS $96,000 - Top-up $20,000 = $76,000)
CPF withdrawal amount from OA/SA and RA = $184,000 ($108,000 + $76,000)

 

[royalmix]

please read my corresponded with CPF again. The $20k topup money was being topup before 55yo in SA.

If your CPF balance at 55 is more than $192,000:

• Year you reach 55 2022
• Full Retirement Sum (FRS) $192,000
• Your Ordinary Account (OA) and Special Account (SA) balances when you reach 55 $300,000 (includes $20,000 top-up monies)

At age 55, we will transfer the Full Retirement Sum of $192,000 from your SA and OA to your Retirement Account (RA).
You can choose to leave the FRS in your RA and withdraw the remaining amount of $108,000

• Retirement Sum in your retirement Account (RA) = $192,000
• CPF withdrawal amount from OA/SA = $108,000

If you own a property with remaining lease that can last you to at least 95 years old, you can choose to withdraw RA savings (excluding interest earned, any government grants received and top-ups made under the Retirement Sum Topping-up Scheme) above your Basic Retirement Sum (BRS) of $96,000.

Topped-up monies in the RA do not form part of the BRS when computing the amount that can be withdrawn i.e. the BRS has to be made up with non-topped up monies.

Based on your example, the maximum RA withdrawal amount is $76,000 (calculated as FRS $192,000 - BRS $96,000 - Top-up $20,000 = $76,000)
CPF withdrawal amount from OA/SA and RA = $184,000 ($108,000 + $76,000)

Yes, I read and saw everything. My understanding the 20k transferred from SA is no longer considered topup monies in RA.

I would suggest you double confirm. Cos pledging do not apply to me.

Or you wait to see if there is anyone with similar experience as you to help you.

 

[limlg73]

Yes, I read and saw everything. My understanding the 20k transferred from SA is no longer considered topup monies in RA.

I would suggest you double confirm. Cos pledging do not apply to me.

Or you wait to see if there is anyone with similar experience as you to help you.

In my correspondence, that $20k is still considered topup money in RA, as CPF officer minus it off from the amount that I can withdraw, i.e. I can only withdraw $76k (BRS minus 20k topup).

are you above 55yo? What do you see in your RA? We below 55yo see the "Reserved" which is the sum of topup+interest.

 

[royalmix]

In my correspondence, that $20k is still considered topup money in RA, as CPF officer minus it off from the amount that I can withdraw, i.e. I can only withdraw $76k (BRS minus 20k topup).

are you above 55yo? What do you see in your RA? We below 55yo see the "Reserved" which is the sum of topup+interest.

Ok, I read the CPF website rules now, there could be a change from the past:

Cash top-ups and CPF transfers are irreversible
Top-ups are irreversible and the savings are reserved to boost your monthly payouts in retirement.

Thus, they cannot be withdrawn for other purposes (e.g. for housing, investment, immediate needs after age 55).

 

[item2sell]

Ok, I read the CPF website rules now, there could be a change from the past:

Cash top-ups and CPF transfers are irreversible
Top-ups are irreversible and the savings are reserved to boost your monthly payouts in retirement.

Thus, they cannot be withdrawn for other purposes (e.g. for housing, investment, immediate needs after age 55).

their rules always changing. That’s the scary part. Suka suka change to no withdrawal of SA. You can die cork standing

 

[BBCWatcher]

None of these 2025 rule changes in any way limit your lump sum withdrawal options. In fact, lump sum withdrawals will be easier than before.

• OA dollars won't be "blocked" by SA dollars. From age 55 onward there won't be SA dollars, so you don't have to jump through hoops to extricate OA dollars ahead of SA dollars. No more CPF Investment Scheme workarounds and delays, no $20,000 "left behind" threshold, etc. You can withdraw interest only, half of interest only, 7/8ths of interest only, 1.5 times your annual interest...whatever you want. (Assuming you've met the FRS, or BRS with property pledge/charge.)
• The Matched Retirement Savings Scheme is increasing, making it easier for those age 55+ to meet at least the Basic Retirement Sum with property pledge/charge. And that in turn means they'll more often have more dollars available for lump sum withdrawal if they wish.
• For those age 55+ who haven't met the Full Retirement Sum, a portion of compulsory contributions and "all three account" Voluntary Contributions will automatically flow into their Retirement Accounts. This helps boost interest, helping individuals meet BRS/FRS thresholds more quickly — unlocking lump sum withdrawal options sooner.
• There's more free money going into CPF for Singaporean citizens. This free money also "unlocks" lump sum withdrawal options sooner.

You also still have the option to pay off your (genuinely high interest rate, hopefully) mortgage faster than required when you have more OA dollars at age 55. When you use OA dollars this way you preserve the option to redeposit those OA dollars, plus accrued interest, if you wish.

If you want to complain about something the government actually did, OK, complain about that if you want. But as far as I can tell everything the government has done in this early 2025 CPF rule package is making lump sum withdrawals easier, not harder (if there's any impact). I think you could even make a fair argument the government is encouraging more lump sum withdrawals with these tweaks to the rules.

 

[highsulphur]

There is no change to withdrawal amount (still anything above FRS or BRS upon pledging) or age (still 55Y). Only no more SA such that no more on demand account for those above 55Y that pays 4%. Before 55Y, SA remains unchanged that pays 4% (or more).

Stop exaggerating just because you are upset you can't earn 4% after 55Y in SA.

 

[QinWei]

take it positively



https://forums.hardwarezone.com.sg/...cial-accounts.7001153/page-145#post-151378195

 

[DevilPlate]

Ya la….CPFB merely js closed the loophole/hack which in fact only benefit a minority of high income earners.

 

[royalmix]

The last few pages of discussions are not about SA closure!

Dun change the topic being discussed!

 

[DevilPlate]

The last few pages of discussions are not about SA closure!

Dun change the topic being discussed!

Ya lo….suddenly become CPFLife/MIW bashing thread

 

[BBCWatcher]

There is no change to withdrawal amount (still anything above FRS or BRS upon pledging) or age (still 55Y). Only no more SA such that no more on demand account for those above 55Y that pays 4%. Before 55Y, SA remains unchanged that pays 4% (or more).

That's right.

And the Enhanced Retirement Sum will increase from $308,700 (2024) to $426,000 (2025) — a ~38% increase. For those of you (like my household) who'd like even higher Retirement Account balances you'll have that option from early 2025.

Stop exaggerating just because you are upset you can't earn 4% after 55Y in SA.

From age 55 onward just find another place to park withdrawable OA dollars if you're dissatisfied with 2.5% interest. You can save or invest in anything you wish: bonds, stocks, real estate, university educations, endowment plans, cryptocurrencies, fixed deposits, more CPF RA, CPF MA, precious metals, collectible works of art...whatever you like that's legal.