CPF SA

[celtosaxon]

Any chance that gov change the rules again for cpf, and make it less flexible?

I would definitely expect changes. Here are some possibilities that come to my mind:

The % going to the pool for Basic could be increased over time, and the benefits from that change could get spread across the other plans to make them more attractive. Basic could even be phased out eventually.

A plan with no bequest and higher payments could eventually be offered... especially as the number of childless individuals coming into retirement becomes greater.

I expect escalating to eventually become a feature rather than a plan - meaning, any plan can have an escalating feature if chosen. The escalating % could eventually change to mirror inflation rather than be a fixed percent. It is also possible that all plans could eventually be escalating, without an option to not be.

These are just a few possibilities based on my perception of the goals, intentions, and the direction things are going. Also, I wouldn’t say I’m particularly good at predicting these things... anything is possible!

 

[quincymmx]

Normally when CPF website update previous month contribution? Seem till today never update Jul contribution in my account

 

[crimsontactics]

Normally when CPF website update previous month contribution? Seem till today never update Jul contribution in my account

You ownself contribute or is it your employee/employer contribution?

If its the latter, maybe your coy delay the CPF payment to you to preserve cashflow.

My coy is currently doing this to me. I have not yet received my June contribution even tho its August.

Sent from . using GAGT

 

[reddevil0728]

You ownself contribute or is it your employee/employer contribution?

If its the latter, maybe your coy delay the CPF payment to you to preserve cashflow.

My coy is currently doing this to me. I have not yet received my June contribution even tho its August.

Sent from . using GAGT

You can report this

 

[reddevil0728]

You ownself contribute or is it your employee/employer contribution?

If its the latter, maybe your coy delay the CPF payment to you to preserve cashflow.

My coy is currently doing this to me. I have not yet received my June contribution even tho its August.

Sent from . using GAGT

They got 14 days to do so. So sometimes is need to wait overnight

 

[crimsontactics]

You can report this

No point reporting. Its not really wrong as long as they pay the late penalty.

Sent from . using GAGT

 

[crimsontactics]

They got 14 days to do so. So sometimes is need to wait overnight

Still confirm late for my June contribution as now already August 17th.

Sent from . using GAGT

 

[reddevil0728]

Still confirm late for my June contribution as now already August 17th.

Sent from . using GAGT

What matters is the posting date. You don’t see it now maybe it hasn’t been refreshed. So just check what’s the eventual posting date when refreshed

 

[reddevil0728]

No point reporting. Its not really wrong as long as they pay the late penalty.

Sent from . using GAGT

If they do then that’s fine

 

[quincymmx]

You ownself contribute or is it your employee/employer contribution?

If its the latter, maybe your coy delay the CPF payment to you to preserve cashflow.

My coy is currently doing this to me. I have not yet received my June contribution even tho its August.

Sent from . using GAGT

Thanks, I think might be my coy delay this month payment.

 

[Surrealz]

If my parents are both above 65 and have a huge sum sitting in SA, should I help them transfer into RA? (they don't use SA monies to invest)

CPF website states that its 4% for both accounts, so no difference right?

 

[dork32]

If my parents are both above 65 and have a huge sum sitting in SA, should I help them transfer into RA? (they don't use SA monies to invest)

CPF website states that its 4% for both accounts, so no difference right?

sorry a lot of difference.

sa money can withdraw anytime you like, provided they already have 180k in ra

ra money cannot touch at all. it will be given out as monthly payout. you will get whatever is left back when parents die.

if you already have 180k in ra, i think it is quite stupid to transfer it into ra.

 

[crimsontactics]

If my parents are both above 65 and have a huge sum sitting in SA, should I help them transfer into RA? (they don't use SA monies to invest)

CPF website states that its 4% for both accounts, so no difference right?

Must depend on financial situation and parents' financial literacy.

If parents' are not financially literate, best to top up RA to prevent impulsive spending.

If parents have an adequate emergency fund outside of CPF, they can choose to top up RA for higher monthly payout.

If parents' liquid assets only in CPF SA, best don't top up.

Likewise if parents' are good at investing, best withdraw SA to beat the 4% interest rate and not top up RA.

Sent from . using GAGT

 

[BBCWatcher]

If my parents are both above 65 and have a huge sum sitting in SA, should I help them transfer into RA? (they don't use SA monies to invest)

To clarify, are they both in this situation: both with at least reasonably well funded Retirement Accounts plus both with “huge” Special Accounts? Or are the balances very lopsided, with one parent having very low balances?

 

[Surrealz]

sorry a lot of difference.

sa money can withdraw anytime you like, provided they already have 180k in ra

ra money cannot touch at all. it will be given out as monthly payout. you will get whatever is left back when parents die.

if you already have 180k in ra, i think it is quite stupid to transfer it into ra.

Thanks!

What if they don't have the FRS of 180k in RA yet?

Confused on this because I thought CPF will automatically transfer SA/OA into RA to meet the sum, but that didn't happen.

Must depend on financial situation and parents' financial literacy.

If parents' are not financially literate, best to top up RA to prevent impulsive spending.

If parents have an adequate emergency fund outside of CPF, they can choose to top up RA for higher monthly payout.

If parents' liquid assets only in CPF SA, best don't top up.

Likewise if parents' are good at investing, best withdraw SA to beat the 4% interest rate and not top up RA.

Sent from . using GAGT

My parents have cash emergency fund and cash liquid assets, but not financial literate - no investments whatsoever. We are quite low SES.

To clarify, are they both in this situation: both with at least reasonably well funded Retirement Accounts plus both with “huge” Special Accounts? Or are the balances very lopsided, with one parent having very low balances?

Okay I think need to rephrase myself, maybe not 'huge' SA...but a substantial amount to them

Both do not have FRS in RA.. but have a decent amount in SA.

My mom has a substantially lower RA than my Dad.

 

[reddevil0728]

Must depend on financial situation and parents' financial literacy.

If parents' are not financially literate, best to top up RA to prevent impulsive spending.

If parents have an adequate emergency fund outside of CPF, they can choose to top up RA for higher monthly payout.

If parents' liquid assets only in CPF SA, best don't top up.

Likewise if parents' are good at investing, best withdraw SA to beat the 4% interest rate and not top up RA.

Sent from . using GAGT

if they aren't financially literate, I actually doubt they know how to withdraw from SA easily.

 

[reddevil0728]

Thanks!

What if they don't have the FRS of 180k in RA yet?

Confused on this because I thought CPF will automatically transfer SA/OA into RA to meet the sum, but that didn't happen.



My parents have cash emergency fund and cash liquid assets, but not financial literate - no investments whatsoever. We are quite low SES.




Okay I think need to rephrase myself, maybe not 'huge' SA...but a substantial amount to them

Both do not have FRS in RA.. but have a decent amount in SA.

My mom has a substantially lower RA than my Dad.

actually i am a little surprise that you can have decent amount in SA but not in RA. Wouldn't the money from SA be transferred to RA previously?

 

[henrylbh]

Thanks!

What if they don't have the FRS of 180k in RA yet?

Confused on this because I thought CPF will automatically transfer SA/OA into RA to meet the sum, but that didn't happen.



My parents have cash emergency fund and cash liquid assets, but not financial literate - no investments whatsoever. We are quite low SES.




Okay I think need to rephrase myself, maybe not 'huge' SA...but a substantial amount to them

Both do not have FRS in RA.. but have a decent amount in SA.

My mom has a substantially lower RA than my Dad.

How much is substantial, but not huge? More than 100k or more than 50k?

To have 'substantial' SA, they must have met the minimum sum (or FRS) of their cohorts.

If now 65 yo, then they are born in 1955. If before Jul, the then minimum sum was $117k and after Jul it was $123k.

They can opt to match up to the current FRS of $181k or ERS of $271.5 in RA by transfer from SA or cash to RA.

What action to take would depend on their outlook and need for liquidity over the later years.

 

[BBCWatcher]

To have 'substantial' SA, they must have met the minimum sum (or FRS) of their cohorts.

Not necessarily. They might have withdrawn Retirement Account funds with a property pledge/charge and had substantial earnings after Retirement Account formation. And I think we’ve since learned these are SA balances in the tens of thousands, not hundreds.

They can opt to match up to the current FRS of $181k or ERS of $271.5 in RA by transfer from SA or cash to RA.

And/or reciprocal OA to RA transfers (Spouse A’s OA to Spouse B’s RA, and Spouse B’s OA to Spouse A’s RA). Reciprocal OA to RA transfers make more sense than SA to RA transfers.

 

[maple96]

If my parents are both above 65 and have a huge sum sitting in SA, should I help them transfer into RA? (they don't use SA monies to invest)

CPF website states that its 4% for both accounts, so no difference right?

Thanks!

What if they don't have the FRS of 180k in RA yet?

Confused on this because I thought CPF will automatically transfer SA/OA into RA to meet the sum, but that didn't happen.

Both do not have FRS in RA.. but have a decent amount in SA.

My mom has a substantially lower RA than my Dad.

Get yourself properly educated on CPF before u "mismanaged" their CPF savings and forfeit their potential opportunity to get free monies from govt!

https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/matched-retirement-savings-scheme

Check their CPF statements, are they on CPF Life or RSS? (one possible reason why u are worried about their RA balance cos u dunno this info)

If u want good advice, share their balances and above details!