CPF SA

[Andrew833]

Oh u mean manually transfer over to RA? They don’t ask u u want to have ERS or FRS then transfer accordingly to RA?

They just transfer FRS then Have to ownself go transfer to hit ERS ?

My understanding is;
Before your hit 55, your can opt for ERS if your OA + SA have enough.
(At 54, you need to get ready the amount. CPF will send notice to you before you hit 55.)

Feel free to correct me, I may be going for ERS.

 

[terence2112]

If we purchase house, housing grant example 20k.

This amount usually will become downpayment during HDB purchased.

Let say example. Purchase price 300k.
down payment 80k with BSD.

20k from grant. 60k from OA.

While remaining to pay is 220K housing loan.


CPF will indicated amount used on property(with grant) and accrued interest, If we do housing refund to CPF. Doesnt make it we are paying the housing grant which govenment gave us during purchasing of HDB.

IF after doing full housing refund to CPF to OA. Finally this amount will also become RA at 55. It still our own money right?

Yes, correct. The purpose of the grant is to help in the purchase of the property. The grant is credited into your OA, forms a component of your OA monies and used to pay for the downpayment.

Yes to your second question, it becomes part of your money when you do a voluntary refund or sale of the property.

 

[terence2112]

My understanding is;
Before your hit 55, your can opt for ERS if your OA + SA have enough.
(At 54, you need to get ready the amount. CPF will send notice to you before you hit 55.)

Feel free to correct me, I may be going for ERS.

I doubt so. I think the ERS can only be effected once you turned 55 onwards.

 

[Kaypohji]

May I ask why? I did a calculation. Seems like u go for FRS and then leave the remaining in sa, it has better returns than u opt for ers... unless u have a long life. I only did calculation until 80s

Or maybe my calculation is wrong ?

My understanding is;
Before your hit 55, your can opt for ERS if your OA + SA have enough.
(At 54, you need to get ready the amount. CPF will send notice to you before you hit 55.)

Feel free to correct me, I may be going for ERS.

 

[Andrew833]

May I ask why? I did a calculation. Seems like u go for FRS and then leave the remaining in sa, it has better returns than u opt for ers... unless u have a long life. I only did calculation until 80s

Or maybe my calculation is wrong ?

ERS for higher payout.
When I hit 54, then decide to cash rich or cpf rich
Cash rich mean go for FRS, the rest withdraw or withdraw OA, left SA to collect interest.

 

[dork32]

ERS for higher payout.

Cash rich mean go for FRS, the rest withdraw or withdraw OA, left SA to collect interest.

smart guy. sa have higher interest than oa. unfortunately cpf smarter. cpf will force you to withdraw sa first.

Unless you are able to shield, you suggestion is not going to happen

 

[moolahloolah]

Nothing in the picture mentioned about lump sum withdrawal at age 55. It's started with what can be withdrawn at or from age 55 after setting aside FRS or BRS with property.

Basically. I understand your first line but not the word lump sum withdrawal. No such thing as lump sum withdrawal at age 55

Lump sum withdrawal amount refers to the 20% of the adjusted RA balance at age 65.

Where can I find info that all top-ups and their accrued interest turn eligible for lump sum pay-outs only at age 65?

Lump sum withdrawal amount is computed based on 20% of members' Retirement Account (RA) balance (excluding top-ups made under the Retirement Sum Topping-up scheme, CPF LIFE Bonus & Deferment Bonus) and any unused CPF LIFE annuity premiums at members' payout eligibility age. The PEA lump sum withdrawal amount includes the $5,000 that can be withdrawn from age 55.

pls ignore the half-baked nonsense that i wrote previously. I have since verified directly from CPF board

 

[henrylbh]

Understand on the point, RA created at 55.

quite clear. I believe at 55, if u exceed FRS,

remaining OA, SA are enough to hit ERS. can opt for ERS at 55 and transfer the remaining OA,SA to ERS amount which is 3 X of BRS.

If u can hit ERS at 55, remaining OA,SA still got money can withdraw out. but quite rare. But ERS will allow u to have a higher CPF life payout

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.

 

[dork32]

May I ask why? I did a calculation. Seems like u go for FRS and then leave the remaining in sa, it has better returns than u opt for ers... unless u have a long life. I only did calculation until 80s

Or maybe my calculation is wrong ?

this is common sense.

sa definitely has higher returns than ers. for ers, part of the money is taken out to buy insurance just in case you cannot die. because you have a lower principal, your returns will definitely be less.

you are right in that you choose not die, even after 90 years old, you would exhausted your own money. the insurance portion will kick in to pay till you die.

 

[henrylbh]

Not really. If BRS is met in the SA, can transfer whatever in the OA to parents.

Yes BRS in SA with sufficient property charge also can.

 

[Tiger9119]

Oh u mean manually transfer over to RA? They don’t ask u u want to have ERS or FRS then transfer accordingly to RA?

They just transfer FRS then Have to ownself go transfer to hit ERS ?

CPF didn't ask, have to voluntary top up from CPF savings and/or cash. My OA and SA was about double the FRS at the time when RA was formed and only FRS amount was transferred to RA. I didn't top up.

 

[Andrew833]

smart guy. sa have higher interest than oa. unfortunately cpf smarter. cpf will force you to withdraw sa first.

Unless you are able to shield, you suggestion is not going to happen

Nvm can invest in etf or reits, thanks.

 

[dork32]

My understanding is;
Before your hit 55, your can opt for ERS if your OA + SA have enough.
(At 54, you need to get ready the amount. CPF will send notice to you before you hit 55.)

Feel free to correct me, I may be going for ERS.

if you have so much in your oa and sa. only frs will be transferred to ra at 55

the remaining money in the oa +sa you can whatever you like with it. It is pure liquid cash

you can buy car, holiday and of course, transfer to your ra to make up ers

 

[dork32]

Nvm can invest in etf or reits, thanks.

if your reits and etf gives you such good returns, why waste time on ers as you suggested

 

[77james]

Yes, correct. The purpose of the grant is to help in the purchase of the property. The grant is credited into your OA, forms a component of your OA monies and used to pay for the downpayment.

Yes to your second question, it becomes part of your money when you do a voluntary refund or sale of the property.

Thanks. It make me think housing grant help me to purchase flat.

if u do CPF refund it actually yr own money if u cover up to the housing grant.

if u do CPF refund up till before grant portion, it actually yr CPF OA contribution with accured interest.

If u dont do refund, solely use CPF OA to pay housing loan. Yr CPF Life payout will be lesser but u got more cash on hand if use only CPF to service loan

 

[Andrew833]

if your reits and etf gives you such good returns, why waste time on ers as you suggested

The risk is there, cpf sa no risk

 

[Kaypohji]

Yes so I was wondering why would anyone chose ers ? Unless one is very confident they have a very long life past 80s...

If not frs plus sa is enough and even higher returns

this is common sense.

sa definitely has higher returns than ers. for ers, part of the money is taken out to buy insurance just in case you cannot die. because you have a lower principal, your returns will definitely be less.

you are right in that you choose not die, even after 90 years old, you would exhausted your own money. the insurance portion will kick in to pay till you die.

 

[crimsontactics]

Yes so I was wondering why would anyone chose ers ? Unless one is very confident they have a very long life past 80s...

If not frs plus sa is enough and even higher returns

Really depends on the amount of your SA.

Many ppl choose ERS because they never do shielding. So most of their money will be earning 2.5%.

Sent from . using GAGT

 

[Kaypohji]

What I mean is ur SA has ERS amount but u don’t opt for ERS.

U opt for FRS. then the remaining from ERS-FRS will still be in SA available for ur withdrawal anytime at any amount

Then I compute I withdraw the difference in payout of frs and ers from sa directly every month

Turns out that I still have remaining left in sa from that initial sum while having the same payout as ers by combining manual withdraw from sa and FRS payout, if I were to die at 85.

I didn’t take into consideration of the bequest difference between frs and ers because I can’t find more information on that to compute.

I also made another assumption that you have a choice to lock ERS amount at 55 and u did that to choose ERS... so the interest accumulated is locked in RA account and not SA... I’m still confused over what will the differences in bequest/remaining be if we choose to lock ERS in RA at 55(if possible) compared to lock FRS at 55 first then 65 top up to ERS.

Really depends on the amount of your SA.

Many ppl choose ERS because they never do shielding. So most of their money will be earning 2.5%.

Sent from . using GAGT

 

[terence2112]

Yes BRS in SA with sufficient property charge also can.

But property charge will only appear after one turns 55. Does this mean that CPF board also looks at how much CPF one had used for property as well?