CPFIS Discussion

[kehyi4]

A place to talk about the CPF Investment Scheme (CPFIS) - strategies to share, lobangs to intro, horror stories, etc

 

[kehyi4]

Business Times: Number of 55-year-olds with Basic Retirement Sum to go up

Tuesday, March 7, 2017 - 05:50
by CHUANG PECK MING

SIX in 10 active Central Provident Fund (CPF) members now accumulate enough savings for their Basic Retirement Sum account when they turn 55. The number, first achieved in 2013, is likely to rise to seven in 10 for members turning 55 in 2020.

Manpower Minister Lim Swee Say said that with higher wages and a higher labour-force participation rate, especially among older workers, CPF balances are expected to keep improving in the coming years.

He was replying to queries raised during the Committee of Supply debate on his ministry in Parliament on Monday.

Several enhancements were introduced last year to help CPF members to save more for their retirement. Examples are the higher CPF ceiling, improved ease of transfer of CPF savings to the account of one's spouse and the Enhanced Retirement Sum.

Mr Lim said that the enhanced savings are for retirement use, and that the government will not allow these savings to be used for overseas training courses, despite many calls for it.

Mr Lim noted that while CPF money can already be used to support basic tertiary education in local approved institutions, the government must also do more to safeguard CPF members' retirement adequacy - especially now that lifespans have improved.

"So we need to be careful about expanding the use of CPF for other purposes," he said.

The minister said MOM is working on improving three aspects of the CPF Investment Scheme (CPFIS): The first is the introduction of a self-assessment tool which members can use to determine whether CPFIS is suitable for them; the second is the lowering of the cap on sales charge to discourage financial intermediaries from proactively selling products to CPF members; the third is a review of the asset classes offered under CPFIS to gauge their suitability for growing retirement savings.

These changes will be announced later in the year. CPF members who prefer a simpler investment option can look forward to the CPF Lifetime Retirement Investment Scheme, the details of which MOM is working on, said Mr Lim.

 

[mSnooze]

You can invest under CPFIS, if you:

are at least 18 years old;
are not an undischarged bankrupt;
have more than $20,000 in your OA; and/or
have more than $40,000 in your SA.

 

[Perisher]

Highly not recommended to touch SA for investment as it is already earning 4% base and +1% more for anything that is within 60k of combined OA(max 20k)+SA+MA.
That at 0% risk other than if the government changes the interest earned.

Hard to better that.

 

[henrylbh]

OA at 2.5%, many cannot beat.

If got CPF to invest, better to move to SA earning at least 4% and do nothing.

 

[V_for_Vanilla]

It is best to not even use CPF for any form of investment. CPF should strictly be for retirement purpose.

 

[lewissac]

Highly not recommended to touch SA for investment as it is already earning 4% base and +1% more for anything that is within 60k of combined OA(max 20k)+SA+MA.
That at 0% risk other than if the government changes the interest earned.

Hard to better that.

Hmm.. let say you already have over 100k inside, first 60k locked at additional 1% rate.

So actually, if you withdraw like 5K for investment, which one goes first? OA or SA?

 

[badsector]

Hmm.. let say you already have over 100k inside, first 60k locked at additional 1% rate.

So actually, if you withdraw like 5K for investment, which one goes first? OA or SA?

depend you pick CPFIS-OA or CPFIS-SA schemes

https://www.cpf.gov.sg/Members/Schemes/schemes/optimising-my-cpf/cpf-investment-schemes

CPFIS-SA has lesser product range.

 

[henrylbh]

It is best to not even use CPF for any form of investment. CPF should strictly be for retirement purpose.

Not best for everyone.

The scheme, to end of last year, made it possible for me to collect $98,454.90 dividends and $217,120.70 profits before misc charges

 

[limster]

My STI ETF is in CPFIS and giving me 3.5%+ dividend every year + capital gain.

 

[wealth_farmer]

What are the charges like for using CPFIS? I heard the bank that holds your CPFIS account charges fees? How much and how often?