CPF Top up questions

[dgeralds]

I have a ERS question.

I will be 58 in Jul 2025. If I top up my RA to 2025 ERS $426K, and continue to top up ERS every year (up to max ERS) until 65 years old, what will be the monthly payout starting from 66 years old?

 

[highsulphur]

I have a ERS question.

I will be 58 in Jul 2025. If I top up my RA to 2025 ERS $426K, and continue to top up ERS every year (up to max ERS) until 65 years old, what will be the monthly payout starting from 66 years old?

Correct me if I'm wrong but once you hit the ERS limit on RA, the interest credited by end of the year will usually exceed the increase in ERS. If that's the case, you won't be able to top up anymore

 

[reddevil0728]

Correct me if I'm wrong but once you hit the ERS limit on RA, the interest credited by end of the year will usually exceed the increase in ERS. If that's the case, you won't be able to top up anymore

Interest not counted

https://www.cpf.gov.sg/content/dam/web/member/retirement/images/RSTU top-up limit graphic_14092023.jpg

see the **

 

[BBCWatcher]

I have a ERS question.
I will be 58 in Jul 2025. If I top up my RA to 2025 ERS $426K, and continue to top up ERS every year (up to max ERS) until 65 years old, what will be the monthly payout starting from 66 years old?

The CPF Board doesn’t offer a straightforward way to estimate payouts in this scenario, but you can use the CPF LIFE Estimator and “pretend” you’re age 65 with a particular Retirement Account balance. Your age 65 RA balance would be computed “manually” using a spreadsheet, for example. Don’t forget to include bonus interest.

By the way, age 70 payout start is a great idea if you don’t need the monthly income sooner. That’s 5 more years of RA interest on the full balance, plus additional RA top ups. Which presumably has a lot to do with why you’re piling into CPF RA.

Correct me if I'm wrong but once you hit the ERS limit on RA, the interest credited by end of the year will usually exceed the increase in ERS. If that's the case, you won't be able to top up anymore

No, that’s not correct. The ERS is based on principal and does not include interest. Every time the ERS is raised everyone with a CPF Retirement Account can add funds to it.

 

[dgeralds]

The CPF Board doesn’t offer a straightforward way to estimate payouts in this scenario, but you can use the CPF LIFE Estimator and “pretend” you’re age 65 with a particular Retirement Account balance. Your age 65 RA balance would be computed “manually” using a spreadsheet, for example. Don’t forget to include bonus interest.

By the way, age 70 payout start is a great idea if you don’t need the monthly income sooner. That’s 5 more years of RA interest on the full balance, plus additional RA top ups. Which presumably has a lot to do with why you’re piling into CPF RA.

No, that’s not correct. The ERS is based on principal and does not include interest. Every time the ERS is raised everyone with a CPF Retirement Account can add funds to it.

I prefer to start at 65. I used cpf calculator to do a rough estimation but it shows only $3300 per month! Not sure if it is correct. May be I'll email cpf board and hope they will answer.

 

[DevilPlate]

I prefer to start at 65. I used cpf calculator to do a rough estimation but it shows only $3300 per month! Not sure if it is correct. May be I'll email cpf board and hope they will answer.

shd be roughly 3k+

delay till 70yo and u will get 4k+

 

[Okenba]

I have a ERS question.

I will be 58 in Jul 2025. If I top up my RA to 2025 ERS $426K, and continue to top up ERS every year (up to max ERS) until 65 years old, what will be the monthly payout starting from 66 years old?

Estimator allows you to indicate how much you will have in RA at point of payout.
So just need to calculate how much you will have at 65 if you top up to ERS every year.
Only issue is that it caps at a certain figure (1m I think) and I think your figure will go beyond that so you will need to do some estimation on your own.

 

[BBCWatcher]

I will be 58 in Jul 2025. If I top up my RA to 2025 ERS $426K....

Note that you'll be able to add funds to your Retirement Account such that its balance will be well above $426,000 in January, 2025. Interest you've earned since your RA was created, including interest for 2024, is not counted as part of the Enhanced Retirement Sum (ERS). And that's already true now: the 2024 ERS ($308,700) is also based on principal (less lump sum withdrawals) and ignores interest. So if you've got room below the ERS now then you probably ought to close that gap now (on April 29 or 30 if you're using cash). The "Retirement" section of your online CPF dashboard should tell you how much room you have (if any) below the current ERS.

Also please note that qualified family members (such as a spouse) can typically transfer their OA dollars into your RA. And vice versa. Generally that's a better option than using unrestricted cash. Although starting in 2025 OA transfers will be less interesting for donors (givers of OA dollars) age 55+ since Special Accounts are going away for those CPF members.

 

[dgeralds]

Note that you'll be able to add funds to your Retirement Account such that its balance will be well above $426,000 in January, 2025. Interest you've earned since your RA was created, including interest for 2024, is not counted as part of the Enhanced Retirement Sum (ERS). And that's already true now: the 2024 ERS ($308,700) is also based on principal (less lump sum withdrawals) and ignores interest. So if you've got room below the ERS now then you probably ought to close that gap now (on April 29 or 30 if you're using cash). The "Retirement" section of your online CPF dashboard should tell you how much room you have (if any) below the current ERS.

Also please note that qualified family members (such as a spouse) can typically transfer their OA dollars into your RA. And vice versa. Generally that's a better option than using unrestricted cash. Although starting in 2025 OA transfers will be less interesting for donors (givers of OA dollars) age 55+ since Special Accounts are going away for those CPF members.

Now my RA is $341K. Unable to top up anymore as there is no room below current ERS. CPF message says "We can't accept any more top-ups or CPF transfers to your Retirement Account as you have set aside the current Enhanced Retirement Sum or your required retirement sum."

Am I right that in 2025, I can top up RA (ERS) up to $426K + amount of interest that I have earned in RA in 2024?

 

[vsvs24]

Need to keep some liquid funds and not all in into RA. In times of need, the monthly payout from CPF life may not be enough.

Especially for medical expenses. I used to think that Medishield life and integrated plan will help to take care of large medical expenses. And medisave can pay for most remaining.

But a family member was recently diagnosed with cancer. Realized there might be a lot of cash outlay due to restriction on claims on cancer drug even for subsidized patient doing chemotherapy at public hospital. There is also restriction on use of medisave.

The financial counselling form shows one round of 6 courses of chemo estimated to be $9132, estimated Medishield claim $2400, estimated medisave $600. Estimated bal payable in cash $6032. This figures is the estimated cost for subsidized patient doing chemo at public hospital (National Cancer Centre, SGH)

I was shocked by the low amount of medisave usable but seems it is true.

This is moh article :
https://www.moh.gov.sg/news-highlig...eld-life-claim-limit-for-cancer-drug-services

After reviewing the latest available claims data, MOH will increase the MediShield Life claim limit for cancer drug services to $3,600 per calendar year from 1 April 2023. There is no change to the MediSave withdrawal limit of $600 per calendar year.

We have medisave at max and yet cancer patients can only use $600 per year for chemo !

 

[Okenba]

Need to keep some liquid funds and not all in into RA. In times of need, the monthly payout from CPF life may not be enough.

Especially for medical expenses. I used to think that Medishield life and integrated plan will help to take care of large medical expenses. And medisave can pay for most remaining.

But a family member was recently diagnosed with cancer. Realized there might be a lot of cash outlay due to restriction on claims on cancer drug even for subsidized patient doing chemotherapy at public hospital. There is also restriction on use of medisave.

The financial counselling form shows one round of 6 courses of chemo estimated to be $9132, estimated Medishield claim $2400, estimated medisave $600. Estimated bal payable in cash $6032. This figures is the estimated cost for subsidized patient doing chemo at public hospital (National Cancer Centre, SGH)

I was shocked by the low amount of medisave usable but seems it is true.

This is moh article :
https://www.moh.gov.sg/news-highlig...eld-life-claim-limit-for-cancer-drug-services

After reviewing the latest available claims data, MOH will increase the MediShield Life claim limit for cancer drug services to $3,600 per calendar year from 1 April 2023. There is no change to the MediSave withdrawal limit of $600 per calendar year.

We have medisave at max and yet cancer patients can only use $600 per year for chemo !

https://dollarsandsense.sg/9-ways-can-use-medisave-pay-healthcare-expenses/

This article says that there is a withdrawal limit of 1.2k/mth for chemo.

Not sure why it is different.
I agree that 600/yr is way too low.

 

[BBCWatcher]

Am I right that in 2025, I can top up RA (ERS) up to $426K + amount of interest that I have earned in RA in 2024?

Since your Retirement Account is currently (in 2024) as full as it can be, when the ERS is raised to $426,000 next year (2025) you'll be able to add up to $117,300. That's the exact difference between the 2025 ERS and the 2024 ERS. You can add up to that amount through any combination of cash top ups and transfers.

 

[BBCWatcher]

Need to keep some liquid funds and not all in into RA. In times of need, the monthly payout from CPF life may not be enough.

Adding funds to a CPF Retirement Account does NOT reduce the amount you can withdraw in a lump sum from a CPF Retirement Account. In fact, if you haven't yet met the Full Retirement Sum (or Basic Retirement Sum with property pledge/charge) then adding funds to a CPF Retirement Account can raise the number of dollars you can withdraw from CPF.

Retirement income that's otherwise adequate (or at least closer to adequate) makes it more financially viable to draw down other assets for "lumpy" expenses, not less.

Yes, adequate liquidity is important. But so is adequate, secure retirement income for life.

 

[royalmix]

Need to keep some liquid funds and not all in into RA. In times of need, the monthly payout from CPF life may not be enough.

Especially for medical expenses. I used to think that Medishield life and integrated plan will help to take care of large medical expenses. And medisave can pay for most remaining.

But a family member was recently diagnosed with cancer. Realized there might be a lot of cash outlay due to restriction on claims on cancer drug even for subsidized patient doing chemotherapy at public hospital. There is also restriction on use of medisave.

The financial counselling form shows one round of 6 courses of chemo estimated to be $9132, estimated Medishield claim $2400, estimated medisave $600. Estimated bal payable in cash $6032. This figures is the estimated cost for subsidized patient doing chemo at public hospital (National Cancer Centre, SGH)

I was shocked by the low amount of medisave usable but seems it is true.

This is moh article :
https://www.moh.gov.sg/news-highlig...eld-life-claim-limit-for-cancer-drug-services

After reviewing the latest available claims data, MOH will increase the MediShield Life claim limit for cancer drug services to $3,600 per calendar year from 1 April 2023. There is no change to the MediSave withdrawal limit of $600 per calendar year.

We have medisave at max and yet cancer patients can only use $600 per year for chemo !

Financial Planning/Retirement Planning is not just about growing your wealth! You need to have protection too. Without a good protection portfolio, whatever wealth you have might not be enough!

Protection does not just include hospitalisation insurance, ie Medishield Life/ISP, it is not enough. I have CI insurance to cover not just cancer alone. I also have other insurance portfolio as backup! One day, I might even drop ISP and just be covered with medishield life, so makes my other insurance portfolio and other financial wealth even more important.

Learning how to manage your life after CI is also important. My relative kena cancer, diagnosed with 6 mths to live, we accept it, dun spend unnecessary money to extend his life, let him enjoy his last days with whatever funds available. He was covered with CI insurance, this money helped his family take care of his funeral and other family finances. He was also fully covered with ISP (at that time no medishield life).

You are right, dun lock all your monies into CPF Life, especially if you do not have adequate insurance portfolio to protect your wealth! Dun "bank" all your hope on only one major source of retirement income, ie CPF Life!

Everyone's personal financial plan is different, there is no one size fit all solution. Most important, make sure you have protection/financial considerations in your portfolio. Some people have major tax considerations in their financial/retirement plan, so they choose certain route/options. Dun just follow blindly.

 

[vsvs24]

Adding funds to a CPF Retirement Account does NOT reduce the amount you can withdraw in a lump sum from a CPF Retirement Account. In fact, if you haven't yet met the Full Retirement Sum (or Basic Retirement Sum with property pledge/charge) then adding funds to a CPF Retirement Account can raise the number of dollars you can withdraw from CPF.

Retirement income that's otherwise adequate (or at least closer to adequate) makes it more financially viable to draw down other assets for "lumpy" expenses, not less.

Yes, adequate liquidity is important. But so is adequate, secure retirement income for life.

Is withdrawal from RA only at 65 ? Can withdraw at eg 66?

 

[royalmix]

I have a ERS question.

I will be 58 in Jul 2025. If I top up my RA to 2025 ERS $426K, and continue to top up ERS every year (up to max ERS) until 65 years old, what will be the monthly payout starting from 66 years old?

I prefer to start at 65. I used cpf calculator to do a rough estimation but it shows only $3300 per month! Not sure if it is correct. May be I'll email cpf board and hope they will answer.

Now my RA is $341K. Unable to top up anymore as there is no room below current ERS. CPF message says "We can't accept any more top-ups or CPF transfers to your Retirement Account as you have set aside the current Enhanced Retirement Sum or your required retirement sum."

Am I right that in 2025, I can top up RA (ERS) up to $426K + amount of interest that I have earned in RA in 2024?

At present, only ERS up to 2027 had been declared. How are you going to estimate ERS/balance at age 65? Using your own projection? How CPFB going to answer you?

Payout amt at age 65 is also dependant on which CPF Life Plan you choose. Your estimate of 3300 is based on Standard Plan?

You ask is it correct? Why? It is not enough to support your lifestyle then?

Come Jan 2025, you can topup = ERS 2025 less ERS 2024.

Topups are irreversible, not withdrawable in any form, in the normal course of business, other than via CPF Life Payouts.

 

[vsvs24]

https://dollarsandsense.sg/9-ways-can-use-medisave-pay-healthcare-expenses/

This article says that there is a withdrawal limit of 1.2k/mth for chemo.

Not sure why it is different.
I agree that 600/yr is way too low.

This is a 2021 article. There was huge changes to MediShield and IP claims and along it Medisave for cancer from 2022.

I can accept the limits on medishield life but the $600 limit on Medisave is unacceptable.

And when they revise MediShield limit recognising that it is insufficient, they still won't increase the Medisave limit.

 

[BBCWatcher]

At present, only ERS up to 2027 had been declared. How are you going to estimate ERS/balance at age 65? Using your own projection? How CPFB going to answer you?

It's reasonable to look at past BRS/FRS/ERS percentage increases and to project them forward. This forecast may not be precisely accurate, but it shouldn't be far off either.

This is a 2021 article. There was huge changes to MediShield and IP claims and along it Medisave for cancer from 2022.
I can accept the limits on medishield life but the $600 limit on Medisave is unacceptable.

For the record there appear to be 4 cancer drugs on the Cancer Drug List eligible for $1,200/month MediSave payment: 3 anti-leukaemia drugs (1 of them in 2 dosing regimens) and 1 anti-skin cancer drug.

And when they revise MediShield limit recognising that it is insufficient, they still won't increase the Medisave limit.

The Ministry of Health says they'll review MediSave limits in tandem with the MediShield Life Council's review.

 

[Crimsom]

This is a 2021 article. There was huge changes to MediShield and IP claims and along it Medisave for cancer from 2022.

I can accept the limits on medishield life but the $600 limit on Medisave is unacceptable.

And when they revise MediShield limit recognising that it is insufficient, they still won't increase the Medisave limit.

Yes. Doesn't make sense that money set aside in medisave goes up with inflation but usable amount no adjusted by inflation.

Need to be both ways to be reasonable

 

[inmyopinion]

I prefer to start at 65. I used cpf calculator to do a rough estimation but it shows only $3300 per month! Not sure if it is correct. May be I'll email cpf board and hope they will answer.

At 55 yo, ERS AT $426K. No top ups after that.
At 65yo, ERS amount will be $641,390

Monthly payout (CPF life standard) will be $3,300 per month as long as u live.

Above was highlighted in Straitstimes.