CPF SA

[highsulphur]

Yes.

If you managed to read up enough all the details of CPF, you will be impressed and amazed by the way it is structured and organized. It is like zero loopholes.

There were over the years but were closed. There were cases whereby people tried to take money out of cpfis by trading against associates to lose money and those losses are "transferred" out. The culprits were eventually charged for such schemes

 

[henrylbh]

No loopholes.

There are still loopholes and absurd rules and don't know whether they are intentional or oversight. But CPF keep evolving and benefitting as well upsetting the members.

 

[vsvs24]

The so called hacks involves age 55 and above and meet FRS in RA.

So the rules are not so tight on this group maybe because they are the target group that already take care of their retirement funding and government no need to worry about providing benefits through other means to them eg medifund etc.

Also they are trying to reduce the bad image portrayed of CPF that cannot take out. So cannot be so tight once their target retirement sums are met.

 

[highsulphur]

The so called hacks involves age 55 and above and meet FRS in RA.

So the rules are not so tight on this group maybe because they are the target group that already take care of their retirement funding and government no need to worry about providing benefits through other means to them eg medifund etc.

Also they are trying to reduce the bad image portrayed of CPF that cannot take out. So cannot be so tight once their target retirement sums are met.

Agree that these are hacks rather than loopholes.

Those who can't draw out money before their time wouldn't be able to in any case

 

[henrylbh]

The so called hacks involves age 55 and above and meet FRS in RA.

So the rules are not so tight on this group maybe because they are the target group that already take care of their retirement funding and government no need to worry about providing benefits through other means to them eg medifund etc.

Also they are trying to reduce the bad image portrayed of CPF that cannot take out. So cannot be so tight once their target retirement sums are met.

To me, the loopholes (previously not known to many) could be intentional rather than oversight as the rules makers have vested interest. Definitely nothing to do with trying to reduce the bad image.

 

[vsvs24]

To me, the loopholes (previously not known to many) could be intentional rather than oversight as the rules makers have vested interest. Definitely nothing to do with trying to reduce the bad image.

To encourage topup ? Amount of topup to CPF keep breaking record.

 

[henrylbh]

Agree that these are hacks rather than loopholes.

Those who can't draw out money before their time wouldn't be able to in any case

Give you one example of loopholes where a person before 55 but FRS in SA, could siphon off or prematurely withdraw his OA if he has elderly parent. Transfer his OA to parents' RA and parents withdraw the amount monthly and pass it back to him. There is also way to withdraw OA before SA for those above 55. But sucks that they tighten the rule to say cannot withdraw accrued interest in OA and SA during the year.

 

[henrylbh]

To encourage topup ? Amount of topup to CPF keep breaking record.

Nothing to do with encouraging top-up. More to do with premature withdrawal of OA before 55.

 

[royalmix]

Loopholes they slowly patching up starting this year, affecting those above 55, they have vested interest, you are right! New Minister, new approach, they call it making their system more efficient

 

[coldwinter00]

currently bank offer high interest rate and cpf special account no longer as attractive as before. do you guys think is worth to continue top up cpf?

 

[vsvs24]

currently bank offer high interest rate and cpf special account no longer as attractive as before. do you guys think is worth to continue top up cpf?

Don't top up now unless it is for tax relief for high tax bracket.

 

[DevilPlate]

currently bank offer high interest rate and cpf special account no longer as attractive as before. do you guys think is worth to continue top up cpf?

Top up max $8k for tax relief OK

 

[coldwinter00]

Thanks all. inflation really make top up cash tight. things gets more expensive and spending power less

 

[reddevil0728]

Don't top up now unless it is for tax relief for high tax bracket.

Not really for high tax bracket. It’s also for longer term

 

[BBCWatcher]

Not really for high tax bracket. It’s also for longer term

I think the long-term aspect of SA only really applies if you view the top-up limit (the FRS) as particularly binding relative to compulsory contribution inflows. If you don’t have any inflows into your SA then (after bonus interest at least, which you can claim via MA) you‘d probably just keep dollars in T-bills (or something else north of 4%) until market interest rates come down.

 

[vsvs24]

Not really for high tax bracket. It’s also for longer term

20k to 40k tax rate is 2 to 3.5%. If pay by GIRO the tax is spilt into 12 mths payment.

No point topping up CPF SA as better off earning higher interest.

But that is provided know how to earn more than 4%. Tbills, bank FD, some banks savings account can do it.

 

[reddevil0728]

20k to 40k tax rate is 2 to 3.5%. If pay by GIRO the tax is spilt into 12 mths payment.

No point topping up CPF SA as better off earning higher interest.

But that is provided know how to earn more than 4%. Tbills, bank FD, some banks savings account can do it.

but technically is 4% + the savings in tax also what

 

[TehSi99]

Not really for high tax bracket. It’s also for longer term

Yes, can't find any others that pays 4% interest risk free for the next maybe 10 years.

If got spare cash, why not? Anyway, top is limit till prevailing FRS in SA alone.

 

[vsvs24]

Wish to give an update that I have successfully closed my CPF Investment account with DBS. The 3 share counters and 5 Tbills sitting in my CPFIS account has been transferred to my CDP account.

Process :

1. Submitted online form to CPF to close CPFIS on 17 Nov 2022.

2. Noticed the 5 tbills disappeared from my CPFIS account when I login to DBS IB on 20 Nov 2022. Called DBS and CPF regarding this on 21 Nov 2022. After some ******** from DBS CSO and a few calls, was informed that DBS has a system glitch so the tbills are no longer shown and DBS will send out the official letter to me that day.

3. Received letter by mail from DBS on 24 Nov 2022 on charges and to ask for my CDP number. Charges was for the 3 share counters only. Letter state that I have to authorise deduction from my DBS bank account for the charges if my CPFIS has insufficient funds.

4. Went to POSB branch on 25 Nov 2022 to ask about the missing tbills and to check if tbills are also subject to transfer fees as the form has only indicated transfer fees for the 3 shares shown in the system. The branch staff confirmed with the backend people that tbills is also subject to CDP transfer fees so I completed the form to state CDP number and authorize amended transfer fees of 8 X $10.70. Submitted the form to POSB branch on 25 Nov 2022 (Fri) about 5pm.

5. On 28 Nov 2022 (Mon), fees deducted from DBS bank account. Checked CDP and saw the movement of the shares and tbills in my CDP.

Conclusion :

1. I used all my OA (except $20,000 that cannot be used for investment) to buy tbills. With the transfer to my CDP, upon maturity they will be paid to my bank account linked to my CDP and at my disposal. So this hack to withdraw OA without touching SA works.

2. Try to leave some money behind in CPFIS if you are planning to close it. Because once CPF approved the closure, DBS seem to freeze the account. The form only allows me to indicate a bank account to deduct the charges from. There don't seem to be any leeway for them to draw from my OA for the transfer fees.

3. As usual, DBS cannot make it. Full of issues when dealing with tbills. When I called DBS hotline after I noticed the tbills disappeared from CPFIS, the CSO said it will be transferrred back to my CPF OA and ask me to call CPF. When I press further she ask me to go to the branch and ask. Caused me to panic as I thought they are liquidating the tbills. When I went to the branch after receiving the letter, took them 4 hrs to get the correct person to address the issue properly. The investment desk person only sent email and was pushed around to ask another unit. In the end, I was saved by the service ambassador who manages the queue as she knew exactly who to contact at the backend to address the issue.

 

[bladez87]

Wish to give an update that I have successfully closed my CPF Investment account with DBS. The 3 share counters and 5 Tbills sitting in my CPFIS account has been transferred to my CDP account.

Process :

1. Submitted online form to CPF to close CPFIS on 17 Nov 2022.

2. Noticed the 5 tbills disappeared from my CPFIS account when I login to DBS IB on 20 Nov 2022. Called DBS and CPF regarding this on 21 Nov 2022. After some ******** from DBS CSO and a few calls, was informed that DBS has a system glitch so the tbills are no longer shown and DBS will send out the official letter to me that day.

3. Received letter by mail from DBS on 24 Nov 2022 on charges and to ask for my CDP number. Charges was for the 3 share counters only. Letter state that I have to authorise deduction from my DBS bank account for the charges if my CPFIS has insufficient funds.

4. Went to POSB branch on 25 Nov 2022 to ask about the missing tbills and to check if tbills are also subject to transfer fees as the form has only indicated transfer fees for the 3 shares shown in the system. The branch staff confirmed with the backend people that tbills is also subject to CDP transfer fees so I completed the form to state CDP number and authorize amended transfer fees of 8 X $10.70. Submitted the form to POSB branch on 25 Nov 2022 (Fri) about 5pm.

5. On 28 Nov 2022 (Mon), fees deducted from DBS bank account. Checked CDP and saw the movement of the shares and tbills in my CDP.

Conclusion :

1. I used all my OA (except $20,000 that cannot be used for investment) to buy tbills. With the transfer to my CDP, upon maturity they will be paid to my bank account linked to my CDP and at my disposal. So this hack to withdraw OA without touching SA works.

2. Try to leave some money behind in CPFIS if you are planning to close it. Because once CPF approved the closure, DBS seem to freeze the account. The form only allows me to indicate a bank account to deduct the charges from. There don't seem to be any leeway for them to draw from my OA for the transfer fees.

3. As usual, DBS cannot make it. Full of issues when dealing with tbills. When I called DBS hotline after I noticed the tbills disappeared from CPFIS, the CSO said it will be transferrred back to my CPF OA and ask me to call CPF. When I press further she ask me to go to the branch and ask. Caused me to panic as I thought they are liquidating the tbills. When I went to the branch after receiving the letter, took them 4 hrs to get the correct person to address the issue properly. The investment desk person only sent email and was pushed around to ask another unit. In the end, I was saved by the service ambassador who manages the queue as she knew exactly who to contact at the backend to address the issue.

How old are you?
Is this a hack to withdraw cpf money before 55?