FRS or ERS?

[HMAN]

a question, wife stop working for long with very little CPF way below BRS.
if I want to help doing top up to her RA with progressive yearly top up and reaching 65 yet still not reaching the BRS level , in the case how the CPF life paying sum will be ?




Read HWZ Forum Rules!

 

[fr33d0m]

a question, wife stop working for long with very little CPF way below BRS.
if I want to help doing top up to her RA with progressive yearly top up and reaching 65 yet still not reaching the BRS level , in the case how the CPF life paying sum will be ?




Read HWZ Forum Rules!

BRS/FRS/ERS are just numbers, there is no obligation to achieve them.

 

[BBCWatcher]

a question, wife stop working for long with very little CPF way below BRS.
if I want to help doing top up to her RA with progressive yearly top up and reaching 65 yet still not reaching the BRS level , in the case how the CPF life paying sum will be ?

You can use the CPF LIFE Estimator to find out. A couple points:

1. You might qualify for tax relief if you top up her Retirement Account with cash. It depends on her global income.

2. You may be able to transfer your OA dollars to her RA.

3. If she can afford to wait until age 70 (the default) to start collecting CPF LIFE payouts she should. The monthly payout amount would be higher.

 

[billiejoe]

If i pledge my house when i am 64, will the interest accumulate from 55-64 contribute to my cpf life amount? Cos if my frs is $300k when i am 55, then i will have close to $500k (interest included) when i reach 64. Just asking.

 

[qhong61]

If i pledge my house when i am 64, will the interest accumulate from 55-64 contribute to my cpf life amount? Cos if my frs is $300k when i am 55, then i will have close to $500k (interest included) when i reach 64. Just asking.

Yes

 

[fr33d0m]

If i pledge my house when i am 64, will the interest accumulate from 55-64 contribute to my cpf life amount? Cos if my frs is $300k when i am 55, then i will have close to $500k (interest included) when i reach 64. Just asking.

the question to ask is why you would pledge your property. there is only one purpose, to withdraw money from your RA?

 

[billiejoe]

Yes. Just in case i need to draw the money for emergency purposes. Plus i plan to stay in my hdb forever.

the question to ask is why you would pledge your property. there is only one purpose, to withdraw money from your RA?

 

[fr33d0m]

Yes. Just in case i need to draw the money for emergency purposes. Plus i plan to stay in my hdb forever.

You can pledge when you need withdraw. And after you start CPF LIFE, there is no more withdraw.

 

[gold_eagle36]

Yes. Just in case i need to draw the money for emergency purposes. Plus i plan to stay in my hdb forever.

Once you pledge. The money from RA will vomit out and withdraw straight. U can double check with cpfb

 

[BBCWatcher]

You can pledge when you need withdraw. And after you start CPF LIFE, there is no more withdraw.

Once you pledge. The money from RA will vomit out and withdraw straight. U can double check with cpfb

Or, if you've used CPF to pay your mortgage, you already have a property charge. The property charge allows you to withdraw funds from your CPF Retirement Account before CPF LIFE payouts start.

You can start CPF LIFE payouts as late as age 70, the default. So if you'd like to push the RA withdrawal option out as far as possible that's the way to do it.

Withdrawing funds from your RA is rather expensive because of the negative impact on your lifetime retirement income. If you raid your CPF RA then chances are you're in fairly or very desperate financial shape. Try to avoid being in fairly or very desperate financial shape!

 

[WHLN17]

I spent about one week in my free time reading from the start till the latest post. I think everyone has some valid points, be it pro higher monthly income or pro higher bequest. I agree with the point that 'higher' payout under standard plan vis-a-vis basis plan is not meaningful as it is not high enough. Assuming if I choose standard plan, I am contributing to the common pool at the expense of higher bequest to love ones and accordingly, I ought to be 'compensated' fairly with meaningful higher monthly payout. Perhaps due to actuary consideration this cannot be done but it does make choosing standard and escalating plan a hard choice.

Right now we still have the option of choosing basic plan, where the interest earned in our RA go back to our RA as oppose going to the common pool under standard and escalating plan. Very clearly, if we know we are going to die before 80, we should opt for basic plan. I think we shouldn't be prejudicial against people who inclined to opt for basis plan if their life expectancy is short, as long as they have a Plan B, in case they live beyond 90 years old as they would have absolutely zero monthly income if they have been depending on CPFL basis plan solely. Maybe one day this option will be taken away if the money in the common pool not enough to meet the objective of CPFL? This can happen if people choose basic plan overwhelmingly and/or everyone live until 120.

Personally, if I have other financial resources, I will not go for standard/escalating plan. I think it is fair that if I don't want to contribute to the common pool, then I must ensure that I can take care of myself beyond 90 once my basis plan payout exhausted. I am not quite decided yet but as of now, standard and escalating plan is out. I project that with other financial resources available to me at my disposal, I should be fine, if God willing.

 

[WHLN17]

Or, if you've used CPF to pay your mortgage, you already have a property charge. The property charge allows you to withdraw funds from your CPF Retirement Account before CPF LIFE payouts start.

You can start CPF LIFE payouts as late as age 70, the default. So if you'd like to push the RA withdrawal option out as far as possible that's the way to do it.

Withdrawing funds from your RA is rather expensive because of the negative impact on your lifetime retirement income. If you raid your CPF RA then chances are you're in fairly or very desperate financial shape. Try to avoid being in fairly or very desperate financial shape!

Yes no hurry to take our money from RA, as it pay good risk free return. However, there is nothing wrong that at some point, we may want to consider withdrawing the money. For example, what if govt of the day changed and I have no confidence in the new govt? I better take out my money fast. Also, at much older age, maybe we want to enjoy a bit after whole life of hard work. Then, if we pledge our property, we can then access relatively large sum of money to open up our options to pamper ourselves a bit. The bottomline is that we must always have the mean to support ourselves regardless of what we choose to do.

 

[dork32]

I spent about one week in my free time reading from the start till the latest post. I think everyone has some valid points, be it pro higher monthly income or pro higher bequest. I agree with the point that 'higher' payout under standard plan vis-a-vis basis plan is not meaningful as it is not high enough. Assuming if I choose standard plan, I am contributing to the common pool at the expense of higher bequest to love ones and accordingly, I ought to be 'compensated' fairly with meaningful higher monthly payout. Perhaps due to actuary consideration this cannot be done but it does make choosing standard and escalating plan a hard choice.

Right now we still have the option of choosing basic plan, where the interest earned in our RA go back to our RA as oppose going to the common pool under standard and escalating plan. Very clearly, if we know we are going to die before 80, we should opt for basic plan. I think we shouldn't be prejudicial against people who inclined to opt for basis plan if their life expectancy is short, as long as they have a Plan B, in case they live beyond 90 years old as they would have absolutely zero monthly income if they have been depending on CPFL basis plan solely. Maybe one day this option will be taken away if the money in the common pool not enough to meet the objective of CPFL? This can happen if people choose basic plan overwhelmingly and/or everyone live until 120.

Personally, if I have other financial resources, I will not go for standard/escalating plan. I think it is fair that if I don't want to contribute to the common pool, then I must ensure that I can take care of myself beyond 90 once my basis plan payout exhausted. I am not quite decided yet but as of now, standard and escalating plan is out. I project that with other financial resources available to me at my disposal, I should be fine, if God willing.

yes you have read, but i dont think you understand completely. even with basic, there is a payout till you die, even if you lived till you are 120. it is just that the payout is less than standard.

 

[dork32]

Maybe one day this option will be taken away if the money in the common pool not enough to meet the objective of CPFL? This can happen if people choose basic plan overwhelmingly and/or everyone live until 120.

Basic plan also contribute to the pool, but less than standard.

But basic also draws less from the pool. in fact basic dont draw from the pool till you are 90 years old.

in fact i feel basic is safer option for both the individual as well as cpf. for the individual, because to contribute less to the pool, you will not lose too much should you die at the wrong age. for cpf, because you draw less from the pool, you will be less taxing on the pool should you not die.

 

[WHLN17]

yes you have read, but i dont think you understand completely. even with basic, there is a payout till you die, even if you lived till you are 120. it is just that the payout is less than standard.

Is it? As the basis payout is from your own RA, once the money inside is exhausted, the payout will stop. That's my understanding, I stand to be corrected.

 

[WHLN17]

Is it? As the basis payout is from your own RA, once the money inside is exhausted, the payout will stop. That's my understanding, I stand to be corrected.

Oh ok. I think I got confused with the RSS. Then more reason to choose basis especially if ones have other Financial means.

 

[BBCWatcher]

Very clearly, if we know we are going to die before 80, we should opt for basic plan.

No, not "very clearly." Examples:

1. If you have no CPF nominee(s) that you care about — no heirs, no charity — then you definitely should NOT choose the CPF LIFE Basic Plan. The monthly payouts are permanently lower than the CPF LIFE Standard Plan. You cannot spend any money after you're deceased.

2. If the CPF LIFE Basic Plan would not be adequate for your living needs, and if other ways to support your living needs are inadequate (or unavailable), then you're probably have to choose the CPF LIFE Standard Plan. At that point it does not matter whether a CPF nominee might receive a somewhat bigger bequest or not. You need the extra money now in this situation, not after you're dead.

3. If you have other assets then your choice of plan might not be obvious even if you think there's a high probability you'll die before age 80. Especially if you're trying to assure a particular level of lifetime gifts and/or bequests. There are no CPF LIFE payout plans that assure a specific bequest level.

 

[vsvs24]

I remember someone shared before he opted for basic and then a number of years later changed to standard and monthly payout increased. Can't remember which thread and which poster mentioned it.

I am 8 years away from 65 and just noted this but did not explore further. Maybe those nearer to opting for CPF life can explore with CPF board on the feasibility of this.

 

[royalmix]

I remember someone shared before he opted for basic and then a number of years later changed to standard and payout increased. Can't remember which thread and which poster mentioned it.

I am 8 years away from 65 and just noted this but did not explore further. Maybe those nearer to opting for CPF life can explore with CPF board on the feasibility of this.

CPFB will definitely welcome you with open arms, happier if you opt for escalating, for contributing more to the pool and will wipe out your RA, fast hand fast leg, especially if your RA got big big balance!

There was a period they open to them to switch!

Not vice versa tho

 

[vsvs24]

CPFB will definitely welcome you with open arms, happier if you opt for escalating, for contributing more to the pool and will wipe out your RA, fast hand fast leg!

Not sure if CPF Board has criteria for allowing changes to the plan. Because I don't think they mention it was changeable on their website.