CPF SA

[crimsontactics]

So u top up 30k plus per year on average ? Impressive !

No leh, my first year I top up $80k...

Subsequent years lower...

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[n0isyEsc0bar]

In this video, the CPF guy mentioned that CPF interest rates might be lower than the current percentages if the govt decides so.

My question is this:
I thought i read somewhere that CPF rates will never go below the floor interest rates of 2.5/4 %. These are the minimum but they can definitely go upwards. Can anyone verify this for me?

$4 million in CPF at age 65 https://youtu.be/GyyxO5hcqp8

$1.5 millions easier for many .

 

[fluxos]

CPF interest rates have remained unchanged since July 1999. However, there is no guarantee it willl remain the same forever as it is reviewed quarterly and annually.

Historical rates prior to July 1999 fluctuated quarterly, you can refer to attachment.

https://www.cpf.gov.sg/askjamie/user/uploads/Historical Interest Rates Q3 2020.pdf

In this video, the CPF guy mentioned that CPF interest rates might be lower than the current percentages if the govt decides so.

My question is this:
I thought i read somewhere that CPF rates will never go below the floor interest rates of 2.5/4 %. These are the minimum but they can definitely go upwards. Can anyone verify this for me?

 

[77james]

My CPF top up after reading the thread and thinking it logical. <35 years old. top up max for spouse too

So fast already hit FRS and less than 35. All the rich ppl

 

[crimsontactics]

In this video, the CPF guy mentioned that CPF interest rates might be lower than the current percentages if the govt decides so.

My question is this:
I thought i read somewhere that CPF rates will never go below the floor interest rates of 2.5/4 %. These are the minimum but they can definitely go upwards. Can anyone verify this for me?

2.5% is the floor rate for all accounts.

Additional interest rates, 1% for up to $60k under 55 years old and an additional 1% for up to $30k for 55 years and older, are also guaranteed.

The rest can rise and fall based on quarterly review.

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[77james]

The 1M65 CPF video is based on 2 person and earning 6k per month continously for the couple in order to achieve that.

Plus some investments in OA account for higher returns and based on assumptions of higher return over the years.

 

[crimsontactics]

The 1M65 CPF video is based on 2 person and earning 6k per month continously for the couple in order to achieve that.

Plus some investments in OA account for higher returns and based on assumptions of higher return over the years.

The 1M65 is very unrealistic for the average Sinkie tbh...

CPF is for you to have a basic retirement, not for you to be rich...

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[iceblendedchoc]

I am here to learn and sincerely wish to understand more about what you asserting here.

Can you please provide details about this large proportion of people that do not need a life annuity.

Specifically:

What kind of financial means do they have access to?

What guarantees do they have that those financial means will never be compromised?

I also dun mind taking an annuity but they must be able to provide 4% guaranteed return at least.

 

[onegoal]

I am average sinkie. I still suggest buy new BTO 1st and sell after 5years with profit 200k then top up CPF. I myself never top up. It is true I lose out the compiled interest, but I gain value from HDB selling. From New HDB, I was able to upgrade to huge EC. Not sure what is next. But I think if you can use other ways like property to grow your wealth. You can achieve even more wealth thru property if u go the right way.

Remember, as a local, u can buy HDB and executive condominium at subsidiary price. If u don't use the opportunity, u don't get to gain. So, we should all explore this as well.

 

[Gitaro]

I also dun mind taking an annuity but they must be able to provide 4% guaranteed return at least.

Cpf life is s good if not better than any annuity you can get anywhere.

 

[polyglob]

CPF is for you to have a basic retirement, not for you to be rich...

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Using this year's numbers, CPF Life pays let's say 1.5k pm or 18k pa from 65 with FRS standard payout. Assume one has additional 800k stashed away in CPF or elsewhere at 65 and lives to 85. That's an extra 40k pa, which makes a substantial difference to the quality of retirement life.

 

[crimsontactics]

Using this year's numbers, CPF Life pays let's say 1.5k pm or 18k pa from 65 with FRS standard payout. Assume one has additional 800k stashed away in CPF or elsewhere at 65 and lives to 85. That's an extra 40k pa, which makes a substantial difference to the quality of retirement life.

Very hard to have such big amount in CPF...

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[Gitaro]

Using this year's numbers, CPF Life pays let's say 1.5k pm or 18k pa from 65 with FRS standard payout. Assume one has additional 800k stashed away in CPF or elsewhere at 65 and lives to 85. That's an extra 40k pa, which makes a substantial difference to the quality of retirement life.

Yup, your illustration above is exactly what I am doing.

Enjoy FRS from 65 upwards with 800k in OA/SA earning at least 2.5% interest per annum.

This is very do-able if one is careful and thorough in his planning.

 

[hwmook]

Wah u confirm millionaire by 60 plus without doing any work further.

If u continue to work and contribute, confirm multi millionaire

Congrats !

How I wish I know this when I was younger

You started to top up since what age? Is it ur parents transfer their sa to u? One year u top up how much

He gambled at casino and won the money so top up to SA. He mentioned this before. You want to learn gambling from him to try your luck at casino?

 

[The_Davis]

A little further below the 1st screenshot you can see this link
"Part of your account has been reserved. View details."

Ok found it. Mine says $45k reserved....

 

[hwmook]

I am average sinkie. I still suggest buy new BTO 1st and sell after 5years with profit 200k then top up CPF. I myself never top up. It is true I lose out the compiled interest, but I gain value from HDB selling. From New HDB, I was able to upgrade to huge EC. Not sure what is next. But I think if you can use other ways like property to grow your wealth. You can achieve even more wealth thru property if u go the right way.

Remember, as a local, u can buy HDB and executive condominium at subsidiary price. If u don't use the opportunity, u don't get to gain. So, we should all explore this as well.

That's why sinkie cannot invest, everyday only think about property.

 

[dork32]

Nobody care to comment, except someone else? Now u know why it is useless to comment/debate?

(just a final comment to my old post)

why is oa 0? i tot you are the one that taught me this. go shield the oa.

 

[maple96]

why is oa 0? i tot you are the one that taught me this. go shield the oa.

Ok one last comment on an old post:

"You can invest your CPF savings under the CPF investment Scheme (CPFIS) after setting aside $20,000 and $40,000 in your OA and SA respectively."

So u should have OA(20k)+ SA(40k)-OA(5k) = 55k in RA at 55.

If u return OA and SA investments back to the account after 55, it will be sweep back to RA at 65 to meet FRS or when u request any withdrawal.

Useless = PHD syndrome for someone to tell stories

Goodluck!

(There is some risk that CPF interest might be cut in view of dipping into reserves plus to fund the budget plus dunno when the crisis will end, my view)

(I share on shielding OA +SA strategies, but u missed one step, ie topup RA with cash to fund it up to FRS at 55! ) But if u use OA to buy property, u dun need to shield OA, but is your choice cos there is some benefits.

 

[77james]

The 1M65 is very unrealistic for the average Sinkie tbh...

CPF is for you to have a basic retirement, not for you to be rich...

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Agree CPF main purpose is to provide medical need for Medisave, SA for retirement and OA for housing and education..

CPF is a force and lock saving. Without this, sporean will spend away the money.

 

[crimsontactics]

Agree CPF main purpose is to provide medical need for Medisave, SA for retirement and OA for housing and education..

CPF is a force and lock saving. Without this, sporean will spend away the money.

A lot of people have unrealistic expectations for CPF, after which they will blame CPF for failing to meet said expectations...

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