CPF SA

[maple96]

It's up to the individual. Assuming this individual has less than $60,000 in her Retirement Account 6 months before Payout Eligibility Age (age 65 currently), this individual can either withdraw funds or join CPF LIFE, as preferred.

I thought someone just share can either withdraw out as lump sum if didn’t hit 60k for CPF life anunnity. Cause without 60k u can’t qualify so should draw out whole lump sum better right since it yr money and u do not qualify as set my CPF

Double confirm, stamp plus chop, he was misled by his PHD friend

 

[The_Davis]

At 55, CPF will move your SA followed by OA into your RA to meet FRS and nothing more. So max in RA is FRS at 55.

FRS in RA will grow with interest over time and with topping ups. The increased RA balance over time cannot be withdrawn except with property or lump sum withdrawal at 65 according to T&C.

If you want RA balance >FRS almost instantly, you need to move your butt by topping up (cash or CPF transfer), the moment RA appears in your CPF.

Just to check , so at age 55
Got RA, OA, SA, MA

Rules for withdrawal from SA/OA is from SA first. Any minimum sum to adhere to now?? Or can withdraw down to last cent?

 

[77james]

If you do not have the stated RA balances, you will stay on the Retirement Sum Scheme and can receive monthly payouts starting from your payout eligibility age until your RA balances are exhausted.

You can still join CPF Life before 80 years old.

If RA is below 60k. Will be on RSS scheme which may not pay out till pass on but till RA exhausted.

If above 60k then CPF life which will continue to pay till we die

 

[henrylbh]

If RA is below 60k. Will be on RSS scheme which may not pay out till pass on but till RA exhausted.

If above 60k then CPF life which will continue to pay till we die

If you happen to be born between 1 Jan 1958 and 30 Apr 1961, you will have to join CPF LIFE if you have:

at least $40,000 in your Retirement Account when you reach 55 years old; or
at least $60,000 in your Retirement Account six months before you reach your payout eligibility age.

You can choose your CPF LIFE plan at the time you wish to start receiving your monthly payouts, which will be anytime between age 65 and age 70.

If you do not have the stated Retirement Account (RA) balances, you will stay on the Retirement Sum Scheme and can receive monthly payouts starting from your payout eligibility age until your RA balances are exhausted.

If you wish to enjoy a lifelong income, you can choose to join CPF LIFE. You may do so at the time when you wish to start receiving your monthly payout, which will be anytime between your payout eligibility age and one month before age 80.

 

[BBCWatcher]

What is meant by 'can either withdraw funds'

Classic Retirement Sum Scheme, starting at age 65, age 70, or anywhere in between. Not a lump sum withdrawal. (Or CPF LIFE, if selected no later than about age 79.8.) Thanks for clarifying.

 

[maple96]

Classic Retirement Sum Scheme, starting at age 65, age 70, or anywhere in between. Not a lump sum withdrawal. (Or CPF LIFE, if selected no later than about age 79.8.) Thanks for clarifying.

As usual, refuse to admit his mistakes and yet continue to make the mistakes

There is a difference between withdrawal and payout

 

[dork32]

If you happen to be born between 1 Jan 1958 and 30 Apr 1961, you will have to join CPF LIFE if you have:

at least $40,000 in your Retirement Account when you reach 55 years old; or
at least $60,000 in your Retirement Account six months before you reach your payout eligibility age.

You can choose your CPF LIFE plan at the time you wish to start receiving your monthly payouts, which will be anytime between age 65 and age 70.

If you do not have the stated Retirement Account (RA) balances, you will stay on the Retirement Sum Scheme and can receive monthly payouts starting from your payout eligibility age until your RA balances are exhausted.

If you wish to enjoy a lifelong income, you can choose to join CPF LIFE. You may do so at the time when you wish to start receiving your monthly payout, which will be anytime between your payout eligibility age and one month before age 80.

i also want to give henry a doctorate of phi loso fy in cpf

 

[Andrew833]

As usual, refuse to admit his mistakes and yet continue to make the mistakes

There is a difference between withdrawal and payout

That's why now, I saw his post I just skip.

 

[77james]

If you happen to be born between 1 Jan 1958 and 30 Apr 1961, you will have to join CPF LIFE if you have:

at least $40,000 in your Retirement Account when you reach 55 years old; or
at least $60,000 in your Retirement Account six months before you reach your payout eligibility age.

You can choose your CPF LIFE plan at the time you wish to start receiving your monthly payouts, which will be anytime between age 65 and age 70.

If you do not have the stated Retirement Account (RA) balances, you will stay on the Retirement Sum Scheme and can receive monthly payouts starting from your payout eligibility age until your RA balances are exhausted.

If you wish to enjoy a lifelong income, you can choose to join CPF LIFE. You may do so at the time when you wish to start receiving your monthly payout, which will be anytime between your payout eligibility age and one month before age 80.

Thanks for the info. This CPF is really lock up our money strictly for retirement need based on RSS, BRS, FRS,ERS for monthly payout at 65 and only said we can make withdrawal of max 20 percent FRS at 65 example 181k x 20% at current FRS = 36.2k.

The rest of the lump sum withdrawal will either after 55 which really can withdraw out when we want, provide we hit FRS excess

At 55, draw out lump sum for what purpose?
Let me think.

Maybe holiday or buy new car? Upgrade to bigger house, unlikely cause at 55 surely u don’t want to be paying housing loan again.

Buy 2nd property maybe not enough and bank won’t loan u for Long tenure as yr age is 55, max another 10 years loan to hit 65.
Cpf contribution also drop.

After working so Long paid off 1st property,
50+ should be worry free abt all outstanding loan like housing loan, renovation or car loan. 50 plus should be free from any loan if possible

If not is to left for yr children.

 

[chrisloh65]

I am lost! Wow! CPF schemes too complicated, too many confusing and even contradicting "information" or misinformation here!

Double confirm, stamp plus chop, he was misled by his PHD friend

 

[dork32]

one question, can we shield ourselves out of cpf life.?

that is at 55,
i do a shield such that my sa has only 40k to be transferred to ra.
i do not top-up my ra any more
at 65 i choose the rss because i have less than 60k.

in this way, i do not have to look at cpf life.

 

[SBC]

Suspect the best shield for CPF Life is via BRS w/ property pledge for those with high SA.

 

[Kaypohji]

Is transfer from cpf oa to da considered as RSTU?

Seems like it is... I just emailed cpf to ask for the exact answer... waiting reply now

If it is, then I think should just aim frs. what for to have brs + top up amount being hold there... if ur top up amount is quite a fair bit probably equivalent to frs...

Suspect the best shield for CPF Life is via BRS w/ property pledge for those with high SA.

 

[terence2112]

Is transfer from cpf oa to da considered as RSTU?

Seems like it is... I just emailed cpf to ask for the exact answer... waiting reply now

If it is, then I think should just aim frs. what for to have brs + top up amount being hold there... if ur top up amount is quite a fair bit probably equivalent to frs...

I think transfer OA to SA is one part of the RSTU scheme. Ultimately, its to eventually build up your SA, so that would have the FRS in the RA when turning 55.

I just transferred 40k to my SA, so i can meet the BRS. Then will use the 4% interest and MA overflow to slowly build up to FRS. Will take a while, but oh wells.

 

[henrylbh]

Classic Retirement Sum Scheme, starting at age 65, age 70, or anywhere in between. Not a lump sum withdrawal. (Or CPF LIFE, if selected no later than about age 79.8.) Thanks for clarifying.

Noting to thank me for. I clarified nothing. I merely asked a one line question.

It's 77james who need your clarification. He awarded you a Phd and took it upon himself to answer my one line question on your behalf after reading your thesis

 

[BBCWatcher]

one question, can we shield ourselves out of cpf life.?
that is at 55,
i do a shield such that my sa has only 40k to be transferred to ra.
i do not top-up my ra any more
at 65 i choose the rss because i have less than 60k.

No. If you have at least $40,000 in your new Retirement Account on your 55th birthday (and were born in 1958 or later), you'll be automatically on a CPF LIFE path. That's one of the two threshold measurements taken for automatic CPF LIFE enrollment.

Also, if you run the Retirement Account forward with $40,000 at age 55 at 4% interest and the most pessimistic bonus interest assumption (bonus interest only on RA), you'll cross the $60,000 threshold before your 64th birthday, well before the $60,000 threshold for automatic CPF LIFE enrollment at age 64 1/2.

One way to stay out of CPF LIFE if you wish is to (a) buy a private life annuity from a reliable payer that pays monthly starting no later than about age 69.8, and (b) apply to withdraw your entire CPF Retirement Account balance based on having another life annuity.

 

[Kaypohji]

Yup I also feel so

You previously top up MA instead ? I feel hitting MA ceiling is harder given it seems to increase at a higher pace than FRS

I think transfer OA to SA is one part of the RSTU scheme. Ultimately, its to eventually build up your SA, so that would have the FRS in the RA when turning 55.

I just transferred 40k to my SA, so i can meet the BRS. Then will use the 4% interest and MA overflow to slowly build up to FRS. Will take a while, but oh wells.

 

[maple96]

No. If you have at least $40,000 in your new Retirement Account on your 55th birthday (and were born in 1958 or later), you'll be automatically on a CPF LIFE path. That's one of the two threshold measurements taken for automatic CPF LIFE enrollment.

.

Dun let this PHD mislead u again

 

[dork32]

Dun let this PHD mislead u again

prof, can you then advise what is correct? I have never considered this path before, so i noe next to nuts about it.

 

[terence2112]

Yup I also feel so

You previously top up MA instead ? I feel hitting MA ceiling is harder given it seems to increase at a higher pace than FRS

Yes, i embarked in topping up my MA to the BHS in January every year. It took a while until i was able to just top up the difference between the current and next year's BHS.
For medical related stuffs like vaccination for my child or my wife's delivery, i have an agreement with my wife that we use hers.

So far, this method is working well. Good to see the MA overflow to the SA. It really accelerates the increase. Next step is to reach FRS. However, this might take a while. Hopefully can reach by 40.

Then the MA will overflow to the OA.