Discussn CPF : Anyone alredy reached ERS ($450k) or topping up FRS to ERS ?

[carey]

Alot of young people lazy to ready about cpf until it's too late. My awakening was when I bought my hdb flat and read up on payments from cpf and the consequences.

Actually I also didn't read up much on CPF until I was nearing 55 hahah

 

[carey]

Most people don't even know how to do shielding.. so stopping that option didn't even affect most people. That's why no one really cared.

I did shielding but only got to enjoy 1 year of 4% interest before they stopped it

 

[semiret]

Actually I also didn't read up much on CPF until I was nearing 55 hahah

Even I already retired for a numbers of years. I still not very sure most of CPF schemes works. I only know very basic of the CPFLife scheme which I most likely to select. The rest of the rules I only know half past six. Haha

 

[win_man]

Just crossed 40 milestone.

Though I have reached CPF FRS and a biz owner, I am wondering if I shd continue to contribute or top up my FRS to ERS of $450K. The interest for ERS is not bad, I think annual 4% rite ? Also completely risk free. So after 65yo, it will becum CPF Life and I can get min $3K/mth payout for life.

Anyone alredy reached ERS ?

I think the first question to ask is do you have any robust financial safety net? Cos i am being brainwashed by 1M65 to build a risk free CPF financial safety net and let compounding interest do the rest. Then excess cash can be used for stock investment or expand your business which come with some risks. In an unlikely event of loss or bankruptcy, your CPF funds will still be protected.

For myself I am "already" or will exceed ERS in 3 years' time if i managed to sell my property by then.

 

[carey]

Even I already retired for a numbers of years. I still not very sure most of CPF schemes works. I only know very basic of the CPFLife scheme which I most likely to select. The rest of the rules I only know half past six. Haha

I suspect the scheme was made complicated by design to stop folks from taking back their own money?

 

[KnyghtRyder]

I did shielding but only got to enjoy 1 year of 4% interest before they stopped it

And would you say that among your peers many were also shielding?

 

[fandango]

Actually I also didn't read up much on CPF until I was nearing 55 hahah

It's too late to apologize. It's too late.....

 

[semiret]

I suspect the scheme was made complicated by design to stop folks from taking back their own money?

I also suspect BBFA are their main target. Haha

 

[socratesg]

Even I already retired for a numbers of years. I still not very sure most of CPF schemes works. I only know very basic of the CPFLife scheme which I most likely to select. The rest of the rules I only know half past six. Haha

Bro you nearing 65 ? You got $450k in ERS already ? If yes, can receive payout of at least $3K every month, song song.

 

[LoUsyGamER]

Just crossed 40 milestone.

Though I have reached CPF FRS and a biz owner, I am wondering if I shd continue to contribute or top up my FRS to ERS of $450K. The interest for ERS is not bad, I think annual 4% rite ? Also completely risk free. So after 65yo, it will becum CPF Life and I can get min $3K/mth payout for life.

Anyone alredy reached ERS ?

Are you in the 1m65 camp or the cpf is not investment camp?

What you believe affects how you want to do with cpf.

 

[semiret]

Bro you nearing 65 ? You got $450k in ERS already ? If yes, can receive payout of at least $3K every month, song song.

I'm 60 this year. I don't intend to go for ERS. As BBFA it's never a good option to do that. 90% you'll loss out to the scheme. FRS for BBFA is more than enough. You see they design the scheme until every bbfa also know they have to opts Standard plan already tells a lot about it. Haha

 

[socratesg]

I think the first question to ask is do you have any robust financial safety net? Cos i am being brainwashed by 1M65 to build a risk free CPF financial safety net and let compounding interest do the rest. Then excess cash can be used for stock investment or expand your business which come with some risks. In an unlikely event of loss or bankruptcy, your CPF funds will still be protected.

For myself I am "already" or will exceed ERS in 3 years' time if i managed to sell my property by then.

I have 2 properties, 1 for staying with my wifey and kid, the other is a hdb which we rented out, after we purchased the condo. The condo really sucked up a huge chunk of my current and potential savings. Earnings from my biz are used predominantly to organically expand the biz and also to pay myself for investments in some blue chip stocks. Not sure if thats considered robust financial safety net in your definition ?

But I enjoy doing my biz so I foresee myself continue to work on it till after 65yo and dun intend to retire at all. But I want to continue receiving a stable payout month after month after I turned 65, at least $3K/mth, on top of dividens from the stocks and rental income. Thats why I am looking at CPF ERS to fulfill this role since the interest is quite good at 4% annually, better than FD.

 

[carey]

And would you say that among your peers many were also shielding?

The more financially savvy ones did shielding too

Anyway, my shielding worked for me (if this makes any sense)

I basically cleared out my SA to the $40k minimum and with my property, I was automatically enrolled under FRS (even though my actual amount was more than enough for ERS) - that was before they changed the rules a year later

In the end, only around $140k ($40k from SA and $100k from OA) went to RA and a month later, over $350k went back to SA to earn 4% interest

Although now that has been transferred back to my OA, I treat it like a savings account that I can withdraw anytime

 

[~sabaisabai~]

yes. ppl always think they can live forever and with the same level of energy they have now...

whether can make it to 65 or not is still a question.

then gahmen always emphasize ppl got long life, and keep asking us to look at parents life..
not true leh.. few of my friends also passed on liao due to terminal illness. not even cross 55yo

 

[mgx-alander]

If you have less than BRS, they will just deduct everything (you can withdraw $5,000).. if you have more than BRS but less than FRS they will move everything to RA and use property to pledge the rest. If you have more than FRS, they will move FRS from SA first and then OA to the RA.

Property pledging is not mandatory and not automatic

 

[semiret]

I have 2 properties, 1 for staying with my wifey and kid, the other is a hdb which we rented out, after we purchased the condo. The condo really sucked up a huge chunk of my current and potential savings. Earnings from my biz are used predominantly to organically expand the biz and also to pay myself for investments in some blue chip stocks. Not sure if thats considered robust financial safety net in your definition ?

But I enjoy doing my biz so I foresee myself continue to work on it till after 65yo and dun intend to retire at all. But I want to continue receiving a stable payout month after month after I turned 65, at least $3K/mth, on top of dividens from the stocks and rental income. Thats why I am looking at CPF ERS to fulfill this role since the interest is quite good at 4% annually, better than FD.

May be you can explores any annuity plan in the mkt that meets your needs? I'm not sure its there any annuity plans available currently? Compare the annuity plans with ERS see which one suits you better? I must declared that I'm retired and not dealing with insurance coy. Haha

 

[~sabaisabai~]

If you die the first month after your draw- down payouts, you ERS that is un-used will be for your descendants MINUS what you have drawn down as pay-outs, no?
If you are a struggler to form FRS, what you have in CPF is what you will draw from 65 or 70, TILL your CPF dry, maybe CPFB keep the interests of CPF Life pool to distribute to long life folks living past 90 ?

If you know where and how to invest your BRS, then it is good. But do note, once you withdraw out, you cannot put it back. If you put it back it will be considered voluntarily top up and this is irreversible. One way ticket

 

[carey]

If you know where and how to invest your BRS, then it is good. But do note, once you withdraw out, you cannot put it back. If you put it back it will be considered voluntarily top up and this is irreversible. One way ticket

Ya lor, Hotel California, can check in anytime we want, but we can never leave

 

[carey]

Property pledging is not mandatory and not automatic

Not automatic meh?

I did nothing and they just assume I am pledging my full-paid up property to make up for the shortfall in my FRS after I did shielding to protect the bulk of my CPF hahah

 

[KnyghtRyder]

Property pledging is not mandatory and not automatic

Maybe I'm wasn't clear.. I didn't say that property pledging is mandatory.. I said that when you are 55 and if your combined OA and SA balance is less than FRS but more than BRS, they will take what you have in OA and SA and put in your RA and then if you have used CPF for property they will take that into account such that if and when you sell the property you will have to return the money used from CPF from the sale of the property to your CPF and CPF will reserve some of that returns to restore your RA to the FRS.

So yes you are right that pledging is not mandatory.. but the garnishing of your sales proceeds to make up your FRS is indeed automatic.

Don't believe me you can ask CPF board.

Of course if you don't sell the property then no diff I guess.