[Help] CPF withdrawal amount - confusing?

[chopra]

Quite dulan with the CPF system. It sounds confusing + cheem. I'm enquiring for someone who is above 55 and thus is already eligible for CPF withdrawal. Instead of giving me just one number to the simple enquiry, the service officer decides to copy-paste a formula to throw me into

OA + SA + (MA – MMS) + (interest earned on OA, SA & MA) – Minimum Sum shortfall.


And so I thought it's just Minimum sum. There's two more terms - MMS and MRA.

CPF Board - Medisave Minimum Sum - my CPF 1
CPF Board - Minimum Sum Scheme - my CPF 1






So, the reason for posting here is....

Do you guys know how to calculate your withdrawal amount?

 

[lzydata]

It really is quite complicated. And there seems to be an additional factor to consider. Those who turned 55 on or after 1 Jan 2013 have to meet the MS and MRA before withdrawing their balances, but those who are older may not have to. See the answer to "What percentage of my cash balances can I withdraw at 55?" here:

CPF Ask Us

So if he turned 55 on or before 31 Dec 2008 he can withdraw 50% of his cash balances in OA and SA, regardless of whether he meets the MS, plus any MA balance above the MMS of $40,500. I hope this is right.

Would it be better to log in to his CPF account and get the withdrawal amount, rather than calculating it from scratch?

 

[chopra]

I also thought it should be somewhere in the cpf account. nvm, threw the qn back to them already.

 

[epsilon-ve]

Can be found. If the person is reaching his/her birthday in one month's time, just login to his/her cpf account, click on "my statement" -> section A -> Retirement Account, click on "Click for Details". Tadah, you will reach a page that states the amount and the relevant MMS.

MSS is fixed at the age when you reach 55. MMS though changes every year to reflect inflation and is currently $40,500.

 

[henrylbh]

Can be found. If the person is reaching his/her birthday in one month's time, just login to his/her cpf account, click on "my statement" -> section A -> Retirement Account, click on "Click for Details". Tadah, you will reach a page that states the amount and the relevant MMS.

MSS is fixed at the age when you reach 55. MMS though changes every year to reflect inflation and is currently $40,500.

To add to the confusion there is a MCC which is currently $45,500. At 55, one is allowed to withdraw the medisave in excess of MMS. If there is a shortfall in MRA, one need to top-up from amount in other accounts before withdrawing his CPF.

 

[chopra]

Can be found. If the person is reaching his/her birthday in one month's time, just login to his/her cpf account, click on "my statement" -> section A -> Retirement Account, click on "Click for Details". Tadah, you will reach a page that states the amount and the relevant MMS.

MSS is fixed at the age when you reach 55. MMS though changes every year to reflect inflation and is currently $40,500.

for my case, the person already abv 55. only shows minimum sum amount and balance RA amount.

the other confusing thing is, it seems like cpf life funding is not included in the eligible withdrawal calculation. those abv 55 will notice that it is already deducted and "vanished" from SA/RA.

 

[henrylbh]

for my case, the person already abv 55. only shows minimum sum amount and balance RA amount.

the other confusing thing is, it seems like cpf life funding is not included in the eligible withdrawal calculation. those abv 55 will notice that it is already deducted and "vanished" from SA/RA.

You half sleepy when saying the above? What deducted and vanished if it is not there in the first place?

At 55, his OA and SA will go into his RA to meet the min sum and MA to meet his MRA. After withdrawing whatever is left, he will only have MA and RA.

If he continues to work with cpf contributions beyond 55, the contributions will go into OA, SA and MA. No further contribution will go into RA which is fixed at the time he was 55.

Every year he is allowed to withdraw the amount in his OA and SA (and MA if he meets the MMS). Nothing will "vanished".

 

[chopra]

some of the money is pledged to cpf life, and it is deducted (vanished)from the RA account.

 

[teerance85]

some of the money is pledged to cpf life, and it is deducted (vanished)from the RA account.

You don't pledge to CPF LIFE. Depending on which LIFE plan ( Basic or Standard) you join, there would a deduction from the Retirement account to buy an annuity. The annuity plan for Standard plan is your minimum sum cash component and Basic plan is 10% of your Retirement account balance.

 

[chopra]

You don't pledge to CPF LIFE. Depending on which LIFE plan ( Basic or Standard) you join, there would a deduction from the Retirement account to buy an annuity. The annuity plan for Standard plan is your minimum sum cash component and Basic plan is 10% of your Retirement account balance.

so check with you.
the deduction is reflected in what account?

 

[henrylbh]

Depending on which LIFE plan ( Basic or Standard) you join, there would a deduction from the Retirement account to buy an annuity. The annuity plan for Standard plan is your minimum sum cash component and Basic plan is 10% of your Retirement account balance.

Sounds like I can use part of my RA to join the basic plan? That means I will have RA and CPF Life running together.

But what is understand from the CPFB is I have to choose either to remain under the min sum scheme or cpf life scheme. I can't have part of my RA deducted to join the CPF Life scheme.

 

[teerance85]

so check with you.
the deduction is reflected in what account?

When the deduction take place, you will see your monies being debited out from your Retirement Account. So every year or you can log in with your Singpass, they will show a statement telling you how much of your RA was used to purchase this annuity.

 

[teerance85]

Sounds like I can use part of my RA to join the basic plan? That means I will have RA and CPF Life running together.

But what is understand from the CPFB is I have to choose either to remain under the min sum scheme or cpf life scheme. I can't have part of my RA deducted to join the CPF Life scheme.

Can't. You either join CPF LIFE or the Min Sum Scheme. It's either one. Assuming you have 100k in your Retirement Account and you join the Basic Plan.

So upon accepting your application, you will notice 10% (10k) deducted from your RA. The remaining 90% stays in your RA (thus the reason why the beneficiaries receive more due to compounded 4% interest earned in RA), and you will draw down the monthly payment for LIFE from 65 yrs onwards.

 

[chopra]

ok resolved. haha my bad

an follow these steps to view his shortfall in his Retirement Account:-

Step 1: Login to “My CPF Online Services” at CPF Board - Members - Home - my CPF 1.

Step 2: Click “My Statement”from the left Menu.

Step 3: Click “Click for details” under “Retirement Account (RA)”

Step 4: Click “My Top-Up shortfall information”





The amount he can apply to withdraw is “Your estimated withdrawal amount after taking into account the Minimum Sum set aside is”. It is indicated as “estimated” as it has not been withdrawn yet and may increase or decrease due to account changes such as the crediting of working contributions, etc.