Special Account After 55

[LKY156]

At 55, the combined balances in our OA and SA are transferred to a newly created CPF Retirement Account (RA).

- If we have sufficient funds in OA account to meet the FRS ($176k) to transfer to RA, will the SA account money remain untouched? Or the combined OA/SA will be transferred to RA?

- After deducting $176k from OA to RA, the remaining money in OA can be used for other purposes? Housing Loan? Withdrawal?

 

[kehyi4]

At 55, the combined balances in our OA and SA are transferred to a newly created CPF Retirement Account (RA).

- If we have sufficient funds in OA account to meet the FRS ($176k) to transfer to RA, will the SA account money remain untouched? Or the combined OA/SA will be transferred to RA?

- After deducting $176k from OA to RA, the remaining money in OA can be used for other purposes? Housing Loan? Withdrawal?

- CPF withdrawals after 55 follow a certain sequence: it's always SA first, then OA. So your FRS will always take from SA before OA

- if you have any OA remaining, it can be used for whatever OA can be used for. Its nature does not change just because you turned 55

 

[LKY156]

- CPF withdrawals after 55 follow a certain sequence: it's always SA first, then OA. So your FRS will always take from SA before OA

- if you have any OA remaining, it can be used for whatever OA can be used for. Its nature does not change just because you turned 55

Many thanks.

Able to point to the CPF website that states the above?
Searched but unable to pinpoint.

 

[iceblendedchoc]

Many thanks.

Able to point to the CPF website that states the above?
Searched but unable to pinpoint.

He is correct. It was published on straits time last week.

 

[maple96]

He is correct. It was published on straits time last week.

Are u sure u understand what TS is asking and what answer was given by the other forumer?

Your answer is different from the other forumer? He did not answer TS questions completely.

TS should read this more answers to first part of TS question: https://smartinvesting18.blogspot.com/2019/10/how-to-stop-sa-to-ra-transfer-at-55.html

 

[cal3135]

•SA will fill up the RA followed by OA
•bal OA can be used for house loan or withdrawal

At 55, the combined balances in our OA and SA are transferred to a newly created CPF Retirement Account (RA).

- If we have sufficient funds in OA account to meet the FRS ($176k) to transfer to RA, will the SA account money remain untouched? Or the combined OA/SA will be transferred to RA?

- After deducting $176k from OA to RA, the remaining money in OA can be used for other purposes? Housing Loan? Withdrawal?

🍎xsmax HardwareZone Forums app

 

[maple96]

•SA will fill up the RA followed by OA
•bal OA can be used for house loan or withdrawal

******************xsmax HardwareZone Forums app

There is a big loophole in the CPFB policy, if it still exist when TS hit 55, he can explore it, ie stop CPF from transferring SA (except 40k + ?) and move his OA to RA!

He can always request to reserve some of his OA for housing payments.

 

[maple96]

At 55, the combined balances in our OA and SA are transferred to a newly created CPF Retirement Account (RA).

- If we have sufficient funds in OA account to meet the FRS ($176k) to transfer to RA, will the SA account money remain untouched? Or the combined OA/SA will be transferred to RA?

- After deducting $176k from OA to RA, the remaining money in OA can be used for other purposes? Housing Loan? Withdrawal?

Read all the discussions and consolidate your discussions here https://forums.hardwarezone.com.sg/money-mind-210/cpf-sa-shielding-hack-fully-explained-6132953.html

 

[ocs_woodlands]

There is a big loophole in the CPFB policy, if it still exist when TS hit 55, he can explore it, ie stop CPF from transferring SA (except 40k + ?) and move his OA to RA!

He can always request to reserve some of his OA for housing payments.

Lorna the big mouth already splash all over the papers lah... how to still have?

 

[maple96]

Lorna the big mouth already splash all over the papers lah... how to still have?

Just read the articles from the blog I posted earlier, unless there is "heated" debate in parliament, u still got hope

 

[henrylbh]

- CPF withdrawals after 55 follow a certain sequence: it's always SA first, then OA. So your FRS will always take from SA before OA

- if you have any OA remaining, it can be used for whatever OA can be used for. Its nature does not change just because you turned 55

If I am not mistaken, for withdrawal, accrued interest etc first before SA and OA is taken out.

 

[maple96]

If I am not mistaken, for withdrawal, accrued interest etc first before SA and OA is taken out.

He is trying to be smart, to use the withdrawal logic to explain why CPFB transfer from SA first then OA to RA.

But u are right, there is a difference between transfer from SA/OA to RA and CPF withdrawals after 55.

1. Current year interest up to mth prior to withdrawal for SA, then that similar interest for OA
2. All SA balance
3. OA balance

 

[henrylbh]

He is trying to be smart, to use the withdrawal logic to explain why CPFB transfer from SA first then OA to RA.

But u are right, there is a difference between transfer from SA/OA to RA and CPF withdrawals after 55.

1. Current year interest up to mth prior to withdrawal for SA, then that similar interest for OA
2. All SA balance
3. OA balance

From what I know or remember, it WAS accrued interest on OA, SA and MA first. Now changed to interest on OA and SA only to be withdrawn first.

 

[henrylbh]

He is trying to be smart, to use the withdrawal logic to explain why CPFB transfer from SA first then OA to RA.

He knows, from what I know, the withdrawal rules. May be he overlooked or simplified it to the extent that it's not right.

 

[ocs_woodlands]

Just read the articles from the blog I posted earlier, unless there is "heated" debate in parliament, u still got hope

No hope lah.

Quote for me an instance when the govt had to decide on the welfare between GIC VERSUS People of Singapore (CPF contributors) and the govt decides that the Poeple of Singapore's welfare is paramount.

This is a govt which has identified Mr Heng, the best person to take over the reins of govt as PM in future.

Who is Mr Heng? I dont know him personally but only through his public actions and words.

in May 2016, he had a stroke. Many people, including myself, said a prayer for him. I mean, at that point, I was ok with him.

What really DISSAPOINTED me was the 1st budget he presented in Feb 17, he announced the increase in PUB taxes and also future GST increases.

EQ wise, it is VERY VERY poor to "thank" the people by immediately announcing a gst increase and PUB taxes.

With this anecdote, what confidence can I have that the govt will "rule" in favour of people of SG against GIC's retained earnings (the difference between GIC ROI and interest paid to CPF holders).

Why am I so upset over loose cannon Lorna? because 2 x ERS = 650k (when me and wife reaches 55).

650k x 0.15% = 9.75k per year.

if we both live till 85, that is 30 years x 9.75k = 293k

I am now raging cos I will potentially lose 293k. if and when I actually lose 293k, can I claim from Lorna?

 

[maple96]

No hope lah.

Quote for me an instance when the govt had to decide on the welfare between GIC VERSUS People of Singapore (CPF contributors) and the govt decides that the Poeple of Singapore's welfare is paramount.

This is a govt which has identified Mr Heng, the best person to take over the reins of govt as PM in future.

Who is Mr Heng? I dont know him personally but only through his public actions and words.

in May 2016, he had a stroke. Many people, including myself, said a prayer for him. I mean, at that point, I was ok with him.

What really DISSAPOINTED me was the 1st budget he presented in Feb 17, he announced the increase in PUB taxes and also future GST increases.

EQ wise, it is VERY VERY poor to "thank" the people by immediately announcing a gst increase and PUB taxes.

With this anecdote, what confidence can I have that the govt will "rule" in favour of people of SG against GIC's retained earnings (the difference between GIC ROI and interest paid to CPF holders).

Why am I so upset over loose cannon Lorna? because 2 x ERS = 650k (when me and wife reaches 55).

650k x 0.15% = 9.75k per year.

if we both live till 85, that is 30 years x 9.75k = 293k

I am now raging cos I will potentially lose 293k. if and when I actually lose 293k, can I claim from Lorna?

U obviously did not read the blog articles

 

[maple96]

He knows, from what I know, the withdrawal rules. May be he overlooked or simplified it to the extent that it's not right.

Yes he knows the CPF withdrawal rules very well (he posted the rules from CPF website before), but he tried to be smart to explain why CPFB transfer SA first then OA to RA lor

Then u caught his error or oversight lor

I know so did not expose him, but u

 

[henrylbh]

Yes he knows the CPF withdrawal rules very well (he posted the rules from CPF website before), but he tried to be smart to explain why CPFB transfer SA first then OA to RA lor

Then u caught his error or oversight lor

I know so did not expose him, but u

Then why say that he is trying to be smart

 

[maple96]

Then why say that he is trying to be smart

because the reason is wrong as u highlighted based on sequence of withdrawals.

The correct reason is purpose of each account.

 

[henrylbh]

His simplification, though not correct in detail, here is good enough for most people here