Cpf special account

[blahblah4321]

When managing your parents' CPF, always make sure you understand the CPF rules, DYODD (do your own due diligence) - never just listen or follow any single replies here!

First, how old are your parent? Why is RA at BRS - his/her choice because he/she "pawn" hdb flat to CPFB or because parent has insufficient funds at 55?

If not by choice, CPFB will do another sweep of the SA/OA funds to RA whenever they attempt to withdraw!

It is late, tomorrow then I explain more, or let another CPF expert help you. Dun take actions yet.

Dun listen to falsehoods!

for SA is sitting in there earning 4.01%
and OA is sitting in there earning 2.5%

not really doing nothing leh.

can do the t-bill with OA

Ty both for ur inputs, initially I was just planning to transfer sa to ra only. But yes for the remaining i will do my own hw.

 

[BBCWatcher]

It’s generally not a good idea to transfer SA to RA, at least not if there are other, better options.

By any chance does this parent have a spouse? If so a popular and often available option is cross-spousal OA transfers. That is, Spouse A can often transfer his OA dollars to his spouse’s RA (or SA if she’s under age 55), and Spouse B can often transfer her OA dollars to her spouse’s RA (or SA if he’s under age 55). These transfers do not attract any tax relief, so it may make sense to use cash first (up to the tax relief limit) then perform the transfers.

 

[Okenba]

Hi all,

I realize my parent have a RA account and a SA account is this normal or Should you only have RA if you are above 55? Or should have both RA and SA

If its normal to have a SA accounts above 55 , there is a like a few thousands in SA, should I move it to RA to earn more interest since its less then 20k.

You will have SA and RA after 55.
As to what you should do, it is difficult without knowing the full circumstance.
Generally, we should think about how to utilise OA first before SA as SA is higher yielding. But it is difficult to recommend without knowing more.

For eg. You mention 'parent'. One of the methods of utilising OA is to top up your spouse's RA. Otherwise, topping up your own RA would draw from your own SA first. Topping up for each other circumvents this rule.

You mention 'above 55'. We do not know if that means 80, in which case we should be thinking about RSS for RA. Or above 70, in which case CPF Life payouts have started and it might help to know which plan they are on. Etc. In each case, the suggestion might be different.

In general, think of how to utilise OA first. And have a plan for CPF life.

 

[royalmix]

there's a difference between falsehood and forget...

i have corrected it.

totally agree that should DYODD.

but there's also a difference between falsehood and forget.

This is CPF thread, not Tbills thread! You think you can make sweeping assumptions/logical fallacies to “pian ginnah” and get away with it because you FORGET? For Tbills, you can forget that the 2% allocation was not for NC but for C at COY, but it only implies you dun understand how Tbills work! You can make sweeping assumptions that NC can affect COY, NC = C0.1%, C0.1% does not affect COY, etc, all these logical fallacies, but not CPF!

All your answers on CPF must be supported by CPF rules and based on the member's current status/situation, not sweeping assumptions or you FORGET! Forget implies you dun fully understand CPF rules, so provide incorrect or wrong information = misinformation = misleading statements = falsehoods ! You should delete all your replies or amend all your replies, not just the 4.01% SA an example I gave and ignore the rest (can withdraw Tbills, can withdraw SA/OA, can test withdrawal, etc).

He has yet to provide details of his parent's CPF status/situation!

 

[royalmix]

First, how old are your parent? Why is RA at BRS - his/her choice because he/she "pawn" hdb flat to CPFB or because parent has insufficient funds at 55?

Ty both for ur inputs, initially I was just planning to transfer sa to ra only. But yes for the remaining i will do my own hw.

Yes, do your homework. Why is it important for me to know his age now? From the age, I might know his CPF status and possibly why his RA is BRS.

Pls check his CPF statement on his current CPF status: any CPF LIfe and what Plan, any pledge of property, etc. Those will help you decide the proper/correct action to take on SA/OA balances. Know the current rules for topups depending on CPF status. If your parent chose BRS with property pledge, pls dun topup his RA and spoil his plan. Understand the implications.

 

[BBCWatcher]

If your parent chose BRS with property pledge, pls dun topup his RA and spoil his plan. Understand the implications.

This doesn’t make sense as written.

 

[cranthir]

stop it guys

 

[blahblah4321]

Yea man , 和气生财。all here to gain financial knowledge.

 

[kickass22]

You will have SA and RA after 55.
As to what you should do, it is difficult without knowing the full circumstance.
Generally, we should think about how to utilise OA first before SA as SA is higher yielding. But it is difficult to recommend without knowing more.

For eg. You mention 'parent'. One of the methods of utilising OA is to top up your spouse's RA. Otherwise, topping up your own RA would draw from your own SA first. Topping up for each other circumvents this rule.

You mention 'above 55'. We do not know if that means 80, in which case we should be thinking about RSS for RA. Or above 70, in which case CPF Life payouts have started and it might help to know which plan they are on. Etc. In each case, the suggestion might be different.

In general, think of how to utilise OA first. And have a plan for CPF life.

@Okenba Hi Okenba, Can I check. After my RA is formed and I don't have FRS, can I top up to FRS using cash? or is there a rule saying I need to top-up using SA before cash?

 

[Okenba]

@Okenba Hi Okenba, Can I check. After my RA is formed and I don't have FRS, can I top up to FRS using cash? or is there a rule saying I need to top-up using SA before cash?

I don't think they will chk your SA when you want to do a cash top-up, so think it should be fine.

 

[BBCWatcher]

@Okenba Hi Okenba, Can I check. After my RA is formed and I don't have FRS, can I top up to FRS using cash? or is there a rule saying I need to top-up using SA before cash?

I don't think they will chk your SA when you want to do a cash top-up, so think it should be fine.

Absolutely no problem. That's one of the advantages of SA "shielding," to be able to swoop in and raise your Retirement Account balance using OA dollars (from qualified family members, such as a spouse) and/or cash.

 

[gobin74]

hi , what are the alternatives of inversting for cpf sa pl . Appreciate if any one can update on the options for cpf sa u folks are thinking about especially i am hearing that cpf oa a/c may not exist after 2024 Dec

Any clarifications/updates vld be appreciated..thnx in advanced plz

 

[BBCWatcher]

hi , what are the alternatives of inversting for cpf sa pl . Appreciate if any one can update on the options for cpf sa u folks are thinking about especially i am hearing that cpf oa a/c may not exist after 2024 Dec

CPF Special Accounts will be closed in early 2025 for all members age 55+. The SA dollars will be transferred first to the member’s RA (up to the Full Retirement Sum typically) and then, if any dollars are left over, to the member’s OA.

And that suggests the first logical outlet for “surplus” SA (soon to be OA) dollars: RA. The Enhanced Retirement Sum (ERS) will be raised in early 2025 from 1.5 times the FRS to 2 times the FRS. That could be your own RA, a family member’s RA, or some combination. CPF MA is another option.

A combination of a low cost stock index fund and a low cost bond index fund is another option, appropriate for long-term holding and drawdown.

For shorter term holdings there are Singapore Savings Bonds, other Singapore Government Securities, fixed deposits, and fixed deposit-like endowment plans.

 

[andyhtc]

CPF Special Accounts will be closed in early 2025 for all members age 55+. The SA dollars will be transferred first to the member’s RA (up to the Full Retirement Sum typically) and then, if any dollars are left over, to the member’s OA.

And that suggests the first logical outlet for “surplus” SA (soon to be OA) dollars: RA. The Enhanced Retirement Sum (ERS) will be raised in early 2025 from 1.5 times the FRS to 2 times the FRS. That could be your own RA, a family member’s RA, or some combination. CPF MA is another option.

A combination of a low cost stock index fund and a low cost bond index fund is another option, appropriate for long-term holding and drawdown.

For shorter term holdings there are Singapore Savings Bonds, other Singapore Government Securities, fixed deposits, and fixed deposit-like endowment plans.

We may see properties surging to anoyhigh next year due to post-55s taking out their SA and OA to dump into properties.

 

[sglandscape]

We may see properties surging to anoyhigh next year due to post-55s taking out their SA and OA to dump into properties.

highly doubt so for this hypothesis

 

[reddevil0728]

We may see properties surging to anoyhigh next year due to post-55s taking out their SA and OA to dump into properties.

what's the basis for this speculation?

 

[highsulphur]

highly doubt so for this hypothesis

The last thing I want to do at 55 is to take on another mortgage

 

[sglandscape]

The last thing I want to do at 55 is to take on another mortgage

Agree with you, and even if you could pay a property which is a big ticket item fully with cash, why would anybody at 55-65 want to have all the cash stuck inside a property and get a measly rental income to spend? Spend the yearly interest of the OA, take out invest some and spend the dividends.

 

[reddevil0728]

The last thing I want to do at 55 is to take on another mortgage

think user may say. flushed with cash. dun need take mortgage. use all cash

 

[highsulphur]

think user may say. flushed with cash. dun need take mortgage. use all cash

and wait for monthly rental to spend rather than able to spend it without any restrictions?

Don't intend to leave that much wealth for the kids