CPF SA

[Gitaro]

U all rely on cpf for retirement meh? Surely got savings ba?

CPF is one part of the retirement income plan.

 

[lordofthering]

Now my SA full already

wanted to go for OA but every $ contribute 1/3 will go to medisave? Can don't go to medisave?

 

[Utonian]

Now my SA full already

wanted to go for OA but every $ contribute 1/3 will go to medisave? Can don't go to medisave?

You SA is full but Medisave not yet reach 60k BHS?? Assume if reach BHS will spillover to OA (since SA is full)


btw i cannot find much info for the VC allocation to 3 accounts, what is the allocation to each account? is it based on age group like normal contribution?

 

[lordofthering]

You SA is full but Medisave not yet reach 60k BHS?? Assume if reach BHS will spillover to OA (since SA is full)


btw i cannot find much info for the VC allocation to 3 accounts, what is the allocation to each account? is it based on age group like normal contribution?

i top up in cash. medisave only 30k but i thought that enough as got insurance and i will go B2 if i go hospital. I wouldn't want my money to be in medisave

You can make VC to:
All 3 CPF Accounts (non tax-deductible)
MediSave Account only (tax deductible* for recipient only)
VC is applicable to Singapore Citizens and Singapore Permanent Residents only.

https://www.cpf.gov.sg/members/FAQ/...+for+Employees&ajfaqid=2184968&folderid=11177

 

[yummyfei]

Can help clarify this..

If this year I am 55 and I have met 181k to form RA.

10 years later when I 65, is my 181k + interest from these 10 years go into cpf life?

When I 65 to start cpf life, do I get monthly payout of $1300 from the initial 181k or from the 181k + the interest accumulated during the past 10 years?

Thank you in advance

 

[highsulphur]

Can help clarify this..

If this year I am 55 and I have met 181k to form RA.

10 years later when I 65, is my 181k + interest from these 10 years go into cpf life?

When I 65 to start cpf life, do I get monthly payout of $1300 from the initial 181k or from the 181k + the interest accumulated during the past 10 years?

Thank you in advance

It will be 181+ accrued interest but it doesn't really matter to you since you have earmarked that 181k at 55 and won't be getting anything from that amount until you at 65

 

[yummyfei]

It will be 181+ accrued interest but it doesn't really matter to you since you have earmarked that 181k at 55 and won't be getting anything from that amount until you at 65

Means I will get monthly payout more than $1300 right.. depending on how much of the interest accumulated from the initial 181k.

 

[Utonian]

i top up in cash. medisave only 30k but i thought that enough as got insurance and i will go B2 if i go hospital. I wouldn't want my money to be in medisave

You can make VC to:
All 3 CPF Accounts (non tax-deductible)
MediSave Account only (tax deductible* for recipient only)
VC is applicable to Singapore Citizens and Singapore Permanent Residents only.

https://www.cpf.gov.sg/members/FAQ/...+for+Employees&ajfaqid=2184968&folderid=11177

ok, guess you self employed and ownself top up SA to FRS.

the cpf site does not mention the allocation, it only says goes into 3 account, doesnt necessarily mean 1/3 to each. Anyone know done VC before able to confirm the allocation into each OA/SA/MS?

 

[henrylbh]

ok, guess you self employed and ownself top up SA to FRS.

the cpf site does not mention the allocation, it only says goes into 3 account, doesnt necessarily mean 1/3 to each. Anyone know done VC before able to confirm the allocation into each OA/SA/MS?

On the homepage, click employee to change to employer and you will find the allocation rate and ratio for each age band.

 

[lordofthering]

possible this way? top up parent cpf and ask them to will it to you? What will happen if they leave?

bank interest is way too low.

 

[henrylbh]

Means I will get monthly payout more than $1300 right.. depending on how much of the interest accumulated from the initial 181k.

The monthly payout depends on the Life plan and the age that you choose to commence Life payout. It does not matter whether payout is interest inclusive as you will be paid as long as you live.

Use CPF tools to see estimated payout based on age (anytime between 65 and 70) that you wish to commence payout and the plan chosen.

 

[kehyi4]

"CPF website does not mention the allocation..."

 

[henrylbh]

https://www.cpf.gov.sg/Assets/emplo...te and Npen_CPF Allocation Rates Jan 2016.pdf

 

[BBCWatcher]

possible this way? top up parent cpf and ask them to will it to you? What will happen if they leave?
bank interest is way too low.

You can top up a parent's CPF account(s), sure. Here are the various choices (assuming your parent is at least age 55):

1. MediSave Account. Contributions must fit within both the recipient's CPF Annual Limit and the recipient's Basic Healthcare Sum. (The BHS is fixed for life when the recipient celebrates his/her 65th birthday.) The recipient might qualify for tax relief. These funds will stay in the recipient's MediSave Account and earn at least 4.0% interest until spent (on qualified medical expenses in Singapore).

2. Retirement Account. Top ups must fit within the current Enhanced Retirement Sum (ERS), a limit based on RA principal only (not accrued interest). Consequently a top up is possible every time the ERS is raised for as long as the member is alive. The giver might qualify for some tax relief if the recipient's RA is below the Full Retirement Sum. These funds will stream out either via CPF LIFE or classic Retirement Sum Scheme-like monthly payouts.

3. "All Three Account" Voluntary Contribution. This contribution must fit within the CPF Annual Limit, and it is allocated to the member's OA, SA, and MA per the standard allocation rules for the member's age bracket. The recipient (age 55+) can withdraw the portions allocated to OA and SA at any time, except for some restrictions if the recipient's Retirement Account isn't adequately funded.

4. Ordinary Account repayment. OA funds used for housing or education, plus accrued interest, can be partially or fully repaid at any time.

All residual funds in a member's CPF accounts will be distributed to the member's CPF nominees upon the member's demise. CPF assets cannot be willed.

Bank interest is quite low, and therefore you should not be holding long-term investible assets in bank accounts. Take a look at your long-term investment portfolio versus cash/cash equivalents and make adjustments if needed.

 

[Jordan]

"CPF website does not mention the allocation..."

I think your table is outdated. Think there is a new one which shows the higher contribution rate for those aged 50 or 55 and above, if I am not wrong

Posted from PCWX using ONEPLUS A6000

 

[Jordan]

possible this way? top up parent cpf and ask them to will it to you? What will happen if they leave?

bank interest is way too low.

You can try your luck, but also it doesn't sound right to top up for them, and you ask them back the same question. If my son ask me the same question, I will say "then don't top up loh "

Why top up for others when you are just making use of them? If at end of day, they willed back to you, it is a bonus. Otherwise, I think it is a question best left on its own without asking

Posted from PCWX using ONEPLUS A6000

 

[kehyi4]

I think your table is outdated. Think there is a new one which shows the higher contribution rate for those aged 50 or 55 and above, if I am not wrong

Posted from PCWX using ONEPLUS A6000

This is the current table found on CPF FAQ (as at 17 Jun 2020)

https://www.cpf.gov.sg/Employers/EmployerGuides/employer-guides/paying-cpf-contributions/cpf-contribution-and-allocation-rates

 

[henrylbh]

I think your table is outdated. Think there is a new one which shows the higher contribution rate for those aged 50 or 55 and above, if I am not wrong

Posted from PCWX using ONEPLUS A6000

What rate you have in mind?

Up to age 55, total contribution rate is 37% - 20% employee and 17 % employer. The total is allocated to different accounts according to age band. After 55, the contribution rate drops according to age band.

 

[Jordan]

What rate you have in mind?

Up to age 55, total contribution rate is 37% - 20% employee and 17 % employer. The total is allocated to different accounts according to age band. After 55, the contribution rate drops according to age band.

I think I mistaken. Haha. I remembered being raised in Parliament to increase the contribution of the employees older than 55. Prob still work in progress. I think it was mentioned that to be implemented in 10 years time or something along that line. But never mind la. Still long way for me

Posted from PCWX using ONEPLUS A6000

 

[henrylbh]

I see. Then maybe it might even be worse to get the money stuck in cpfia, with almost zero interest. There is no clarity on the funds being transferred from cpfia to cpf oa when annual limit has been reached. No one has tested, and given the responses from cpf, is doubtful.

Money will never get stuck in CPFIA. Agent bank cannot hold on to the money indefinitely.

Your agent bank will also automatically transfer the cash balance held in your CPF Investment Account to your OA (at the end of the month*) if your Investment Account has been inactive (i.e. if there had been no investment transactions) for two consecutive months.

* The monies will be transferred on the third last working day of the month. In the event that the third last working day falls on a Saturday, the transfer will take place on the second last working day of the month.


In practice, transfer back to OA is effected in the same month when there is no transaction during the month, on the last day or second last day of the month and OA gets credited on the same day, else transfer credited into OA just after the month earns no interest in the month.

If amount in CPFIA is fairly large, I go ATM at least 2 or 3 days before month end to effect the transfer to OA to ensure that my OA is credited by the last day of the month so as not to long interest in the following month.