REgarding MS/RA cpf account

[foxer77]

I would like to query on this MS at age of 55.

Scenario 1

A reached the age of 55 . Retirement Account was created and all his saving from his OA had been transfer over leaving him with nothing. He has still have housing loan to paid each month. Which is not enough due to his current salary & CPF contribution . In which, he need to cough out upfront cash for his housing loan due to this MS deduction.

Question: Can he use this MS / RA account to pay for his housing loan?


Scenario 2

B reached the age of 55. Retirement Account was created and all his saving from his OA had been transfer over leaving him with nothing. Through the year, he slowly build op his OA again. Will there be another deduction(like at the age of 55) from his OA to RA again? or if he reached a certain limited of amount in OA there will be another brought over from OA to RA?

 

[highsulphur]

You should seriously call cpf to ask them directly

 

[edwinttt1978]

I would like to query on this MS at age of 55.

Scenario 1

A reached the age of 55 . Retirement Account was created and all his saving from his OA had been transfer over leaving him with nothing. He has still have housing loan to paid each month. Which is not enough due to his current salary & CPF contribution . In which, he need to cough out upfront cash for his housing loan due to this MS deduction.

Question: Can he use this MS / RA account to pay for his housing loan?


Scenario 2

B reached the age of 55. Retirement Account was created and all his saving from his OA had been transfer over leaving him with nothing. Through the year, he slowly build op his OA again. Will there be another deduction(like at the age of 55) from his OA to RA again? or if he reached a certain limited of amount in OA there will be another brought over from OA to RA?

Q: I am reaching 55, will I be able to continue using my CPF savings to service my housing loan?
A:
When you reach 55, a Retirement Account (RA) will be created and savings from your Ordinary and Special Accounts (OA/SA) will be transferred to your RA to meet your cohort CPF Minimum Sum (MS). If you still have an outstanding housing loan, you may wish to use your CPF OA savings to repay the loan before the transfer.

After the transfer, you can continue to use the remaining savings in your CPF OA and any new contributions to repay the housing loan. You can also apply to use the amount in excess of the MS required cash component in your RA* for the loan repayment.

* If you are born in or after 1958 and have at least $40,000 in your RA at 55 or $60,000 in your RA at 65, you will be placed on CPF LIFE. The amount that you can use from your RA depends on the RA balances as well as the LIFE plan you have chosen.



Q: Can I use my Retirement Account balance to pay for my monthly housing instalments or lump sum payment?
A:
If you were born on or after 1 July 1940, the amount you can use from your Retirement Account for your monthly instalments or lump sum payment is the funds in excess of the Minimum Sum you need to set aside in cash.

For example, you are 55 years old and have set aside the Minimum Sum of $155,000 fully in cash. You will need to retain at least $77,500 (and the accrued interest) in your Retirement Account before any cash can be released for your housing payment. You may then use $77,500 from your Retirement Account to pay for your monthly instalments or lump sum payment.



Q: I cannot meet my CPF Minimum Sum when I reach 55. Do I need to top up the shortfall immediately?
A:
No, you do not need to top up the shortfall immediately. However, if you have any new CPF contributions, government top-ups or other refunds received after 55, part of these amounts will be used to top up the shortfall when you next withdraw your CPF.