CPF SA

[dgeralds]

Withdrawing just SA interest followed by OA interest without touching both SA and OA principal is allowed.

oh....i got it. Thank you.

 

[henrylbh]

Got it. I have re-done the steps. Please help to check if it is ok now...

1. 1 Jul
- do shielding for 236K in SA
- SA 40K
- OA 272K

2. 10 Jul - 55 years old
- RA will be created
- RA 186k (FRS) - 40K from SA and 146K from OA
- SA 0K
- OA 33K

3. 13 Jul
- Transfer 93K from OA to RA via the Retirement Sum Topping-Up Scheme (RSTU).
- RA 279K
- SA 0K
- OA 33K

4. 15 Jul
- deshield SA
- SA 236K
- OA 33K

how to make the balance OA 33K (and whatever cash i have) to go into SA?

Thank you.

If you have cash earning pittance, consider shielding OA as well and fill the gap in RA (whether it's FRS or ERS) with cash.

 

[Keyite2021]

Withdrawing just SA interest followed by OA interest without touching both SA and OA principal is allowed.

How do u do this? I spoke to a CPF Rep and i was told there is no such option. Whatever u withdraw will be from SA itself, even if i do it within the first 2 weeks of a new year (1 Jan to 13 Jan)

pls advise

 

[dgeralds]

If you have cash earning pittance, consider shielding OA as well and fill the gap in RA (whether it's FRS or ERS) with cash.

Appreciate if you can explain further as I don't understand what you are saying. Thank you.

 

[snowcrabramyeon]

Appreciate if you can explain further as I don't understand what you are saying. Thank you.

What he is trying to say is that if you have cash sitting in the bank that are uninvested, it is probably earning very low interest. Therefore, it is better to try and move some of these (low interest earning) cash into CPF to earn better interest. To do this, you could shield both OA and SA, then once RA is created, use cash to top up to ERS (or FRS), then unshield.

 

[Okenba]

I don't really get what you mean. By the way im still working and will continue to work until retirement age.

Basically, is 2.5%pa okay for you for a not very liquid asset. If you want to withdraw from OA, you will need to shield SA before doing so.

So if you intend to someday withdraw OA, you might as well do it when SA is already shielded (at 55), instead of needing to shield again (at 60 for eg) when you do decide to withdraw it.

However, if you are still working, your OA will continue to grow from contributions, so you could decide to wait until you retire and shield SA and withdraw OA then instead.

If you're fine with 2.5% and don't see yourself withdrawing OA, then just leave it and don't bother.

 

[dgeralds]

Hi All

Im fast approaching 55 on 10 july. I have created poems account and tested out buying Nikko AM shenton short term fund fd (SGD). I have the following today:
OA 272K
SA 276k

Please help to confirm the following actions / timeline that i am going to take are correct:
1. 1 Jul
- do shielding for 236K in SA
- SA 40K
- OA 272K

2. 10 Jul - 55 years old
- RA will be created auto by CPF board
- RA 186k (FRS) - 40K from SA and 146K from OA - auto done by cpf board
- SA 0K
- OA 33K

3. 13 Jul
- Transfer 93K from OA to RA via the Retirement Sum Topping-Up Scheme (RSTU).
- RA 279K
- SA 0K
- OA 33K

4. 15 Jul
- deshield SA
- SA 236K
- OA 33K

Also how to make the balance OA 33K (and whatever cash i have) to go into SA?

Thank you.

In my step 3 above, can I transfer cash to RA to bring it to ERS?

 

[snowcrabramyeon]

In my step 3 above, can I transfer cash to RA to bring it to ERS?

Yes, you can use cash to top up your RA to ERS. In fact, every year the ERS is likely to increase and you can use cash to top it up to the prevailing limit. This RA top up is not counted as part of the VC $37,740 limit for OA/SA/MA.

 

[therat]

Is it possible, above 55 want to topup 50k cash to his RA?
Is there any limit?

 

[reddevil0728]

Is it possible, above 55 want to topup 50k cash to his RA?
Is there any limit?

Depends on whether you have hit ERS

 

[snowcrabramyeon]

Is it possible, above 55 want to topup 50k cash to his RA?
Is there any limit?

The topup limit is the prevailing ERS

 

[henrylbh]

In my step 3 above, can I transfer cash to RA to bring it to ERS?

In step 3, you should be able to transfer 93k from OA or deposit same in cash to bring RA to ERS.

 

[dgeralds]

Withdrawing just SA interest followed by OA interest without touching both SA and OA principal is allowed.

Is it allowed? How to do this?

 

[tangent314]

Is it allowed? How to do this?

Just apply to withdraw and they will automatically determine for you which account to take the money from.

 

[lordofthering]

My dad put $280k inside and he is 65 now.

anyone know why the CPF person told me he can get $1800 per month. I use the calculator and it wrote $1500. Is it because he still got work?

 

[snowcrabramyeon]

My dad put $280k inside and he is 65 now.

anyone know why the CPF person told me he can get $1800 per month. I use the calculator and it wrote $1500. Is it because he still got work?

Is he on CPF Life or the Retirement Sum Scheme?

 

[lordofthering]

Is he on CPF Life or the Retirement Sum Scheme?

He top up to his RA. He is 65 years old this year. Is CPF Life right?

Strange I read this and this is 2000 if he had 271500.


On both the CPF LIFE and Retirement Sum Scheme, members can expect to receive a similar payout.

	Amount in 2020	Monthly Payouts From age 65
CPF LIFE (Standard Plan)	Retirement Sum Scheme
Basic Retirement Sum (BRS)	$90,500	$750 – $810	$750 – $810
Full Retirement Sum (FRS)	$181,000	$1,390 – $1,490	$1,390 – $1,490
Enhanced Retirement Sum (ERS)	$271,500	$2,030 – $2,180	$2,030 – $2,180

Source: CPF

 

[reddevil0728]

He top up to his RA. He is 65 years old this year. Is CPF Life right?
On both the CPF LIFE and Retirement Sum Scheme, members can expect to receive a similar payout.

	Amount in 2020	Monthly Payouts From age 65
CPF LIFE (Standard Plan)	Retirement Sum Scheme
Basic Retirement Sum (BRS)	$90,500	$750 – $810	$750 – $810
Full Retirement Sum (FRS)	$181,000	$1,390 – $1,490	$1,390 – $1,490
Enhanced Retirement Sum (ERS)	$271,500	$2,030 – $2,180	$2,030 – $2,180

Source: CPF

65 means 1956.

so unless he opt for cpf life, if not will be rss

 

[snowcrabramyeon]

He top up to his RA. He is 65 years old this year. Is CPF Life right?

Strange I read this and this is 2000 if he had 271500.


On both the CPF LIFE and Retirement Sum Scheme, members can expect to receive a similar payout.

	Amount in 2020	Monthly Payouts From age 65
CPF LIFE (Standard Plan)	Retirement Sum Scheme
Basic Retirement Sum (BRS)	$90,500	$750 – $810	$750 – $810
Full Retirement Sum (FRS)	$181,000	$1,390 – $1,490	$1,390 – $1,490
Enhanced Retirement Sum (ERS)	$271,500	$2,030 – $2,180	$2,030 – $2,180

Source: CPF

For the year he is born, the default is not CPF Life. You should clarify with the person you spoke to whether he/she was referring to RSS or CPF Life payout.

Also, the table you displayed, the amount reflected is the amount set aside at age 55. By 65, that amount would have grown because of the RA interest accumulated which would come up to a lot more. So if you only have 271,500 at 65 in RA, the CPF Life monthly payout would not be what is shown in the table but lesser.

Please see article below for an explanation:

https://blog.moneysmart.sg/budgeting/cpf-life-payout-plan-minimum-sum/

 

[BBCWatcher]

And on top of all that there's no obligation to start payouts at age 65. Payouts can start as late as age 70, and the monthly payout amount is higher if payouts start later.