CPF SA

[crimsontactics]

There is no such thing as breakeven for RSS. For the same sum of RA balances, the payout under RSS is generally much higher than CPFL because of the shorter duration. Under RSS, the member gets back whatever is his at any age he uplorry, but not under CPFL.

Those who met the min sum of their respective cohorts, the payout duration is about 20 years from PEA (can be 60, 62, 63, 64 or 65) or a little over 20 years because of the extra and additional extra interest.

Those will low balances will exhaust their RA well before the duration of 20 years based on min payout of $250.

Only those whose balances in RA not here and not there may have their payout stretched to about 90 because of the extra and additional extra interest.

The only way to know is to use the calculator.

But I can't access the RSS calculator as it is only limited to the applicable age group. Need to use SingPass to verify.

Sent from . using GAGT

 

[aamaterasu]

Hi guys,

If by 55 I have 500k in my SA account, can I shield 460k of it and use OA/Cash to top up RA to ERS?

This way from 55 to 65 I will be able to utilise 4% risk free 460k (~18.4k / annual) in SA before my CPF life start at 65 right?

 

[wutawa]

Hello dun anyhow quote me, say what?

Can u be patient and wait for his confirmation? If his father is on CPF Life, there is no need to talk about RSS!

 

[crimsontactics]

Hi guys,

If by 55 I have 500k in my SA account, can I shield 460k of it and use OA/Cash to top up RA to ERS?

This way from 55 to 65 I will be able to utilise 4% risk free 460k (~18.4k / annual) in SA before my CPF life start at 65 right?

Can.

Sent from . using GAGT

 

[henrylbh]

I worry government later change law. Our SA may change

I more worry change gov than change laws.

 

[henrylbh]

Please clarify what and where is the part on selective reading?
Then we can understand whether it is you or me is doing selective reading.

The below post by henry basically states the same thing that I had said.

Ha Ha you quoted me, but I failed to say that beyound 90+,you will get more than what's yours under CPFL.

 

[chrisloh65]

I know, but according to statistics, most people can't live past 90 !
Even at the most optimistic over-estimated exaggerated death age, >2 out of 3 still can't live past 90 !
Isn't that the reason given for why Gov changed RSS payout cut-off age from 95 to 90?

Ha Ha you quoted me, but I failed to say that beyound 90+,you will get more than what's yours under CPFL.

 

[ocs_woodlands]

Hi guys,

If by 55 I have 500k in my SA account, can I shield 460k of it and use OA/Cash to top up RA to ERS?

This way from 55 to 65 I will be able to utilise 4% risk free 460k (~18.4k / annual) in SA before my CPF life start at 65 right?

yup. that's the secret sauce to retiring at 55 instead of 62 or 65....

 

[SBC]

Can expect for CPF changes after election.

 

[reddevil0728]

I more worry change gov than change laws.

if opp are supposedly more "CPF friendly" then wouldn't it be "better"?

 

[henrylbh]

RSS don't give a higher payout because its break even age is 90, which is roughly the same as CPF Life.

It used to give a higher payout because last time the break even age is only 85.

The only advantage RSS has now is that if you die before 90, your children will get some of your money.

The only way to know is to use the calculator.

But I can't access the RSS calculator as it is only limited to the applicable age group. Need to use SingPass to verify.

The above post shows you know nothing much about RSS and thus giving misinformation.

CPFB clearly stated that the default payout under RSS is about 20 years from relevant PEA, which can start from 60 to 65. I have explained why some got payout that's much less than 20 years and some got payout that stretched to 90. Actually for that some, the calculated payouts, based on CPF's calculation would stretch beyond 95, but limited to 95 initially. After some outcry, the limit is adjusted to 90 and the payout increased.

The only way for you know is to use the RSS calculator? That's because you are not familiar with RSS. If you know, RSS is much more transparent than CPFL. In fact you can even calculate the RSS payout yourself and the RA balance at any point of time until it is exhausted, if your are familiar with rules and rates.

There is no such thing as breakeven point for RSS as you get back whatever is yours if the RA is not exhausted by payouts by the time you uplorry.

For CPFL, you will not get back what's yours unless you uplorry above age 90 and the actual breakdown point above 90 would depend on the plan chosen. For those who chose Standard or Escalating plan, you lose big time if you uplorry about 80 plus and lesser as you approach 90.

 

[henrylbh]

if opp are supposedly more "CPF friendly" then wouldn't it be "better"?

I see no future with them for the time being but I would like them to be around to slap the ruling party now and then. To keep them alive, I have always voted opposition except for the first time when I was eligible to vote. I put a X against the one that I thought I don't want.

 

[reddevil0728]

I see no future with them for the time being but I would like them to be around to slap the ruling party now and then. To keep them alive, I have always voted opposition except for the first time when I was eligible to vote. I put a X against the one that I thought I don't want.

wah classic hahaha.

 

[Tiger9119]

For CPFL, you will not get back what's yours unless you uplorry above age 90 and the actual breakdown point above 90 would depend on the plan chosen. For those who chose Standard or Escalating plan, you lose big time if you uplorry about 80 plus and lesser as you approach 90.

Take it as premium for a insurance that you are forced to buy even though only 1 in 3 or 4 will benefit from it.

 

[hwmook]

I see no future with them for the time being but I would like them to be around to slap the ruling party now and then. To keep them alive, I have always voted opposition except for the first time when I was eligible to vote. I put a X against the one that I thought I don't want.

Good choice, they need to be slapped.

 

[haohaowan2]

Hi Guys, I am back. Apologize for the late post as i am digesting the information on.. I will answer them here:

1. born before Jul 1957. Has login and checked thru the portal, it is under RSS.
2. Parents are in healthy stage at present.
3. check thru the estimator calculator:

RSS:
$570/mth (25 years)
CPFL:
Standard Plan
$544 - $577
Escalating Plan
$433 - $462
Basic Plan (default plan)
$498 - $528

Base on the observation, there is not much different in terms of payout range. except RSS has a limit to 25 years before it goes to 0. Using the CPFL estimator, Bequests ends 80 yo for standard and escalating plan.

Base on my understanding, RSS allow age 70 then start withdrawal. if now to age 70 which we continue to contribute into his RA, it will still helps to earn some interests during these years right?

after reading and digest the information, i think CPFL looks much better I feel. Hope to hear more advise from you guys as well..

 

[aamaterasu]

yup. that's the secret sauce to retiring at 55 instead of 62 or 65....

I tried reading up on how to purchase tbills but it's really confusing. Does anyone have experience on how we can purchase tbills through CPFSA and how the process would be (from buying to maturity) ? Although its still quite a long way for me but i would love to find out. Thank you alot.

 

[BBCWatcher]

1. born before Jul 1957. Has login and checked thru the portal, it is under RSS.

OK, that’s too bad. In short they’re relatively CPF poor.

2. Parents are in healthy stage at present.
3. check thru the estimator calculator:
RSS:
$570/mth (25 years)
CPFL:
Standard Plan
$544 - $577
Escalating Plan
$433 - $462
Basic Plan (default plan)
$498 - $528

The Standard Plan is the default for automatic CPF LIFE enrollees, actually. But that doesn’t really matter since they’d have to choose CPF LIFE if they wish it, and then they can choose their preferred payout plan at the same time.

Base on the observation, there is not much different in terms of payout range. except RSS has a limit to 25 years before it goes to 0. Using the CPFL estimator, Bequests ends 80 yo for standard and escalating plan.

That’s right, but there’s a more important factor: it’s fairly likely they qualify for one or more government programs that’ll boost their CPF LIFE payouts specifically. As one example, they could investigate the Silver Housing Bonus to see if they qualify.

Base on my understanding, RSS allow age 70 then start withdrawal.

So does CPF LIFE. They can start payouts as early as age 65, as late as age 70, or anywhere in between. If they don’t need the money they should wait.

if now to age 70 which we continue to contribute into his RA, it will still helps to earn some interests during these years right?

Yes, and possibly also some tax relief depending on the situation. They may also qualify for the new Matched Retirement Savings Scheme starting in January, 2021. And I think one of them might still qualify for some bonus interest (total balances under $60,000). They could also consider transferring OA and SA into RA, and then the OA portion would earn higher interest. However, that could also reduce available cash for withdrawal, and they should have a few liquid dollars on hand if they can afford them.

I tried reading up on how to purchase tbills but it's really confusing. Does anyone have experience on how we can purchase tbills through CPFSA and how the process would be (from buying to maturity) ? Although its still quite a long way for me but i would love to find out. Thank you alot.

That’s not the best way to shield SA, so forget about it. The best way is to use a low volatility bond unit trust via a zero fee platform.

 

[dork32]

Interesting part is;
at 85, RSS still got money left for bequest.
at 85, CPFL no more money left for bequest.
Both start at 65.

For ppl like me, can't choose RSS liao correct? Since it's default.

actually cpflife basic will still have bequest at 85 but less than rss

but bbc recommends standard and escalating. you will not have any bequest at 85 for these 2

 

[maple96]

1. born before Jul 1957. Has login and checked thru the portal, it is under RSS.

OK, that’s too bad. In short they’re relatively CPF poor.

That's a condescending opinion or judgement, utter rubbish!