New Cpf Life Calculation

[star2008]

Say my birthday is 1 Apr.

The year I turn 55, what happens to the SA Interest for that year when my RA is formed ?

Does SA get 3 months of interest credited at year end (being SA interest from 1 Jan to 31 Mar that year) ?

When you turn 55, RA will transfer the required sum from SA. It is whatever money in SA at that point in time. If SA not enough, then it draw from OA.

Come end of year, CPF will compute interest earn for OA, SA etc and credit intetest in the respective account.

I do not think cpf will compute interest earn when one just turn 55.

 

[Carnage]

Bringing this up.

Better to opt for basic or standard CPF life?

It's the best life annuity in Singapore in terms of returns, but I don't get why BRS vs. ERS is not 3x BRS payout.

Seems like not worth to topup to ERS?

 

[qhong61]

Bringing this up.

Better to opt for basic or standard CPF life?

It's the best life annuity in Singapore in terms of returns, but I don't get why BRS vs. ERS is not 3x BRS payout.

Seems like not worth to topup to ERS?

Just go for FRS will do. Any top up cannot be withdrawn.

 

[henrylbh]

It is the best of the worst, so doesn't make it any better

Best of the worst?

It IS the best available. May be the best of the best

Don't just say. Name one similar annuity scheme that can beat or match CPF Life. No need the best of the best, the worst of the best will do.

About 100 billions is in the retirement account and more if SA is included and yet no insurer or fund manager is tempted to tap the amount to better what CPF Life is offering.

 

[JuniorLion]

If I am not wrong,

The current Enhanced Retirement Sum Scheme of 2017 is $249,000.

Accounting for the 10 years interest assuming that you start at 55, your retirement account will have principal amount and accrued interest capped at $350k.

Hence, they have already factored that amount in for you to enjoy the $18xx - $20xx payouts monthly.

TL;DR you cannot put more than $350k in RA.

Don't think so. Because you're able to calculate based on 350k in your RA at age 50. For example, you're able to set your DOB at 1967, and your current sum in RA at $350k.

 

[lazybee]

If it takes 89 years old to breakeven for CPF life (FHS) over monthly withdrawal by SA, I think I would rather take the basic plan with BHS, and kept the rest of $$ in SA to earn interest.

Frankly, this is the best of the worse. Not many ppl live past 89 (median is 80 for guys) and there is little risk as both are under CPF.

If there is a choice, I rather not have CPF life and use monthly withdrawal by SA.

Both CPF life amount and SA interest is not guaranteed anyway. They fluctuate based on policy.

 

[BBCWatcher]

Not many ppl live past 89 (median is 80 for guys) and there is little risk as both are under CPF.

Median life expectancy at birth is 80.9 years for men (SingStat, 2016 estimated). But you’re already born, so your risk profile is already different. If you were age 65 today, you’d have a 50-50 chance of making it until age 84 (+19 years). Life expectancies are trending upward.

And you also might have more complete information than SingStat has about you. If you smoke, for example, then you’re less likely to beat the median....

....But who cares? You’re buying longevity insurance, you’re required to buy some, and you can decide quite late how much to buy. Don’t even worry about that decision now.

 

[LiteHouse]

Let's say a person hits FRS or even ERS before 55 years old. Can the person choose to only shift BRS to RA account at 55 year old and withdraw the rest? Or the rules is to make us set aside so that we will get monthly payouts at 65?

 

[elnewbie]

Yes can just do BRS, provided that you have sufficient property charge on your property or you pledge your property.

Let's say a person hits FRS or even ERS before 55 years old. Can the person choose to only shift BRS to RA account at 55 year old and withdraw the rest? Or the rules is to make us set aside so that we will get monthly payouts at 65?

 

[hwmook]

Let's say a person hits FRS or even ERS before 55 years old. Can the person choose to only shift BRS to RA account at 55 year old and withdraw the rest? Or the rules is to make us set aside so that we will get monthly payouts at 65?

Can, that is the point of BRS. For a person that have a property, he can choose to pledge the property and keep only the BRS in CPF.

 

[WWH123]

A question here for the experts.
At 55, CPF contribution rates come down to 26% (13 + 13).
Hence take home pay is more.
So higher taxable income.
Anyway to get around this?
Top up CPF using cash to $7k?