CPF SA

[skpuppy]

What if the money goes into RA then someone kicked the bucket before they draw down?

 

[reddevil0728]

hi Okenba, quick qns on cpf again:
At 55, my RA will be created and start pooling its funds first from my SA, then OA if it is insufficient. And between 55 and 65, I can continue to choose to top up my RA. is there a ceiling for the ra top ups? ERS or FRS limit?

Also, say at 65 where my CPF life payouts r set in stone, am i able to withdraw my RA balance thereafter without affecting the amt of the CPFL payout?

ERS

 

[reddevil0728]

What if the money goes into RA then someone kicked the bucket before they draw down?

https://www.cpf.gov.sg/members/FAQ/...group=CPF+LIFE&ajfaqid=2186431&folderid=11684

 

[Okenba]

hi Okenba, quick qns on cpf again:
At 55, my RA will be created and start pooling its funds first from my SA, then OA if it is insufficient. And between 55 and 65, I can continue to choose to top up my RA. is there a ceiling for the ra top ups? ERS or FRS limit?

Also, say at 65 where my CPF life payouts r set in stone, am i able to withdraw my RA balance thereafter without affecting the amt of the CPFL payout?

ERS is max. But ERS rises every year. My understanding is that the accounting for capital and interest in RA will be separate such that we will always be able to top up capital to the new ERS each year without worrying about how much interest we gain each year.

Once you begin payout, you can't withdraw from RA. You can add to RA to increase your payout.

 

[zoneguard]

Also, say at 65 where my CPF life payouts r set in stone, am i able to withdraw my RA balance thereafter without affecting the amt of the CPFL payout?

For standard and escalating plans, the entire RA balance is deducted as LIFE premium to join the scheme and start the payout.

Basic plan keeps a portion in RA as 10-20% is deducted as LIFE premium.

Basically if you want to do any adhoc withdrawals, RA isn't the account to target. Use SA/OA.

EDIT: Additional contributions to RA can flow out via AMP or by increasing additional LIFE premium. See this

 

[walsly]

thank you all for the responses. i think i learnt more about cpf in just few pages of this thread than all the web infos n etc haha

 

[skpuppy]

For standard and escalating plans, the entire RA balance is deducted as LIFE premium to join the scheme and start the payout.

Basic plan keeps a portion in RA as 10-20% is deducted as LIFE premium.

Basically if you want to do any adhoc withdrawals, RA isn't the account to target. Use SA/OA.

EDIT: Additional contributions to RA can flow out via AMP or by increasing additional LIFE premium. See this

Does it mean that after 55, you cannot transfer $$ to your SA anymore to earn interest? I am told after 55, you can withdraw all your OA and SA. That is when a lot of ppl withdrew. Haha! They scare government change cpf regulations again

 

[zoneguard]

Does it mean that after 55, you cannot transfer $$ to your SA anymore to earn interest? I am told after 55, you can withdraw all your OA and SA.

Okenba explained this earlier in the thread: https://forums.hardwarezone.com.sg/threads/cpf-sa.6308495/post-135828714

Condition for SA/OA withdrawal is always to hit FRS.

 

[walsly]

Okenba explained this earlier in the thread: https://forums.hardwarezone.com.sg/threads/cpf-sa.6308495/post-135828714

Condition for SA/OA withdrawal is always to hit FRS.

So in short, the earlier we hit FRS in our SA before 55, the longer the whole sum there will reap the benefits of the annual 4% compound interest + whatever contributions from our salary, and by extension, we'll have a beefier SA to withdraw out at 55, right?

 

[zoneguard]

So in short, the earlier we hit FRS in our SA before 55, the longer the whole sum there will reap the benefits of the annual 4% compound interest + whatever contributions from our salary, and by extension, we'll have a beefier SA to withdraw out at 55, right?

Yes, the power of compounding.

FV = PV (1+I)^N​

 

[aarontansp]

Yes I am thinking of that too. Somewhere along the lines of $7k cash top up + moving some of my OA to my SA on an annual basis - accelerating the build up of my SA with a pace I am comfortable with.
I do have about 40K of my OA with endowus now since early this year, and the returns are quite ok from my perspective.
For passive index investing, would it be of any difference if I am already vested into various ETFs and index funds in my robo?

Note that doing cash top-up to SA, while enjoying tax relief, it cannot be refunded ( It cannot be withdrawn in cash or used for any other purposes such as education, investment, insurance premium payments, housing). The cash top-up and its interest generated will be locked up in your RA.

 

[dork32]

Note that doing cash top-up to SA, while enjoying tax relief, it cannot be refunded ( It cannot be withdrawn in cash or used for any other purposes such as education, investment, insurance premium payments, housing). The cash top-up and its interest generated will be locked up in your RA.

when you top up your sa, your sa will come from 2 sources, employment and top up.

many of us are able to achieve frs through employment and hence would be able to withdraw our sa at 55

when we withdraw, we can consider that

1. we withdraw from the employment portion so the top up portion is stuck, or

2. we can withdraw from the top up portion so that the employment portion is stuck. this is against what you have said that the top up portion is locked up in ra.

if after your top up, you still do not have frs, then true, the top up portion is forever locked up

 

[henrylbh]

In short, topping up to SA gets frozen (when opting for BRS) if working contribution does not meet FRS at 55.

 

[karakorum1999]

In short, topping up to SA gets frozen (when opting for BRS) if working contribution does not meet FRS at 55.

That’s correct!
Top-ups to SA are in principled reserved and meant for retirement but the “locking” matters only if you are interested to use property pledge to withdraw monies from RA.

For example, if your RA is at FRS (age 55 and above), CPF will retain BRS + top-ups (+accrued interest to date) so that your withdrawn amounts via property pledge will be accordingly reduced (instead of BRS amount for someone else who had never done any top-ups.)
But if your SA at age 55 is at least FRS+ top-ups(+accrued interest), then there is effectively no “locking”.

Same applies when you want to use RA to pay mortgage loans —- the BRS + top-ups (+both accrued interests) cannot be touched/used.

At age 65 (before any payout starts) one can opt to withdraw 20% of RA - I believe this includes everything (top ups, accrued interests of any kind), but can anyone verify this? Always wanted to ask CPFB this but never got round to doing it..

 

[henrylbh]

For example, if your RA is at FRS (age 55 and above), CPF will retain BRS + top-ups (+accrued interest to date) so that your withdrawn amounts via property pledge will be accordingly reduced (instead of BRS amount for someone else who had never done any top-ups.)
But if your SA at age 55 is at least FRS+ top-ups(+accrued interest), then there is effectively no “locking”.

FRS at age 55 and not 'age 55 and above'

 

[henrylbh]

At age 65 (before any payout starts) one can opt to withdraw 20% of RA - I believe this includes everything (top ups, accrued interests of any kind), but can anyone verify this? Always wanted to ask CPFB this but never got round to doing it..

Read it as it is -

If you were born in 1958 or after, you also have the option to withdraw up to 20% of your Retirement Account savings as at age 65. This includes the first $5,000 that can be withdrawn from age 55.

Compare to -

You may also withdraw your Retirement Account savings (excluding top-up monies, government grants, and interest earned) above your Basic Retirement Sum if you own a property.

 

[dork32]

In short, topping up to SA gets frozen (when opting for BRS) if working contribution does not meet FRS at 55.

but if i post this way is respond to the guy, he will have no clue about wat is happening

 

[karakorum1999]

FRS at age 55 and not 'age 55 and above'

Thanks. I was trying to say that you don’t have to do the property pledge at 55, but can do so at any time 55 and above, as long as it’s before payout starts.

 

[karakorum1999]

Read it as it is -

If you were born in 1958 or after, you also have the option to withdraw up to 20% of your Retirement Account savings as at age 65. This includes the first $5,000 that can be withdrawn from age 55.

Compare to -

You may also withdraw your Retirement Account savings (excluding top-up monies, government grants, and interest earned) above your Basic Retirement Sum if you own a property.

Many years ago when I was looking at this, I thought so similarly but there were worked examples that indicated that different rules apply apparently, but I couldn’t figure out conclusively on what’s included.
After that, didn’t pursue further as I am not planning to withdraw the 20% but it would be of interest to many people.

 

[karakorum1999]

Many years ago when I was looking at this, I thought so similarly but there were worked examples that indicated that different rules apply apparently, but I couldn’t figure out conclusively on what’s included.
After that, didn’t pursue further as I am not planning to withdraw the 20% but it would be of interest to many people.

Just checked the latest FAQ, for RA withdrawals after 55, it is explicitly mentioned that RSTU top up monies will be excluded in the computation.