Topping up RA acct after 65?

[yoongf]

Lets say a relative feedback that the CPF life monthly payout is insufficient.
Can a top up be made to that relative’s RA acct so that monthly payout can be increased?
Looking for a hassle free method to increase payout. Since RA interest rate can hit 6%, does this method sound logical?

 

[madtari]

My dad is 67... I topped up 7k into his RA. He's on RSS, not CPF LIFE. That 7k top up only increase his monthly payout by $8. That is so pathetic.

Lets say a relative feedback that the CPF life monthly payout is insufficient.
Can a top up be made to that relative’s RA acct so that monthly payout can be increased?
Looking for a hassle free method to increase payout. Since RA interest rate can hit 6%, does this method sound logical?

 

[kelhot2001]

Lets say a relative feedback that the CPF life monthly payout is insufficient.
Can a top up be made to that relative’s RA acct so that monthly payout can be increased?
Looking for a hassle free method to increase payout. Since RA interest rate can hit 6%, does this method sound logical?

There is 2 ways to do so if you want to do it

One is to put your monies into RA as additional payout without incurring life premium

Two, is to buy additional life premium

https://www.cpf.gov.sg/members/FAQ/schemes/Retirement/CPF-LIFE/FAQDetails?category=Retirement&group=CPF LIFE&folderid=11663&ajfaqid=2186389


What happens when there are inflows into my Retirement Account after I have started receiving my monthly payout?A

If there are inflows into your Retirement Account (RA) after you have started receiving your monthly payout, there are two options you can consider:

You can leave the money in your RA. In July, we will automatically pay this money to you as additional monthly payout (AMP). We will tell you the exact revised monthly payout you will receive two to three months before we make the adjustments. This payment will stop when the money in your RA runs out.

Note: If you are under CPF LIFE Escalating Plan, the AMP will not increase by 2% every year in the month that the first payout was made.


You may choose to buy another annuity to give you a higher annuity payout to last you for life. To buy an additional annuity, you may:

Go to*www.cpf.gov.sg*and click on "Login Here" to login with your SingPassGo to "My Requests" → “CPF LIFE” → Apply for CPF LIFE Additional Annuity

 

[SBC]

My dad is 67... I topped up 7k into his RA. He's on RSS, not CPF LIFE. That 7k top up only increase his monthly payout by $8. That is so pathetic.

The min is $297, I think. Can email CPF to increase.

 

[yoongf]

I think RSS default payout is 28yrs? Believe hv to write in to shorten the period, which will substantially increase the monthly payout.

$8 x 12 = $96 / 7k = 1.3% . Wonder what is their formula.

 

[kelhot2001]

I think RSS default payout is 28yrs? Believe hv to write in to shorten the period, which will substantially increase the monthly payout.

Even if 28 years, the mobthly payout even without interest should be at least $20. I think there must be some errors

 

[yoongf]

Buy additional annuity better than simply leaving in RA?

 

[SkyNinja]

My dad is 67... I topped up 7k into his RA. He's on RSS, not CPF LIFE. That 7k top up only increase his monthly payout by $8. That is so pathetic.

I thought need to inform CPF to recalculate? If don't inform, the yearly refresh is in Jan or July...?

 

[JuniorLion]

Yearly refresh is July.

 

[kelhot2001]

Buy additional annuity better than simply leaving in RA?

Depending on personal preference as this. If you relative think he/she can live past 90 plus, then life annuity is a better choice while if he/she think that wont make past 90, then leaving in RA without life premium better.

BTW, what plan is he/she on ? And the additional annuity is through cash or OA/SA account ?

 

[yoongf]

CPF life plan plus.

Planning for relatives a bit sensitive to propose based on.. i think u wun live beyond 90 so leave in RA best for you.

Simplest way is to just say.. leave RA higher monthly payout compared to anualty. But is it always true that leave RA sure always higher monthly payout?

Btw, cpf retirement calculators.. are they accurate regarding top ups?

Depending on personal preference as this. If you relative think he/she can live past 90 plus, then life annuity is a better choice while if he/she think that wont make past 90, then leaving in RA without life premium better.

BTW, what plan is he/she on ? And the additional annuity is through cash or OA/SA account ?

 

[madtari]

Thanks... will ask my dad to check with cpf. I also find it ridiculous...

Even if 28 years, the mobthly payout even without interest should be at least $20. I think there must be some errors

 

[tangent314]

CPF life plan plus.

Planning for relatives a bit sensitive to propose based on.. i think u wun live beyond 90 so leave in RA best for you.

Simplest way is to just say.. leave RA higher monthly payout compared to anualty. But is it always true that leave RA sure always higher monthly payout?

Btw, cpf retirement calculators.. are they accurate regarding top ups?

It's really hard to say, because afaik there isn't a calculator online for calculating the various forms of payouts from RA topups. Would be nice to have though.


I would recommend making an appointment to visit a CPF officer that will explain the options available to you together with the amounts.

 

[henrylbh]

Even if 28 years, the mobthly payout even without interest should be at least $20. I think there must be some errors

You are correct logically. $7000/28yrs/12mths=$20.83 per month with takihng into account interest earned

But CPF Board got mysterious and illogical ways of calculating the payout after the topping up and the person's payout only increased by $10 after 7k top-up

 

[henrylbh]

My dad is 67... I topped up 7k into his RA. He's on RSS, not CPF LIFE. That 7k top up only increase his monthly payout by $8. That is so pathetic.

You dad's PEA (payout eligibility age) is 62 and the estimated duration of period is 20 years from PEA. In other words, after any top-up, the balance would be paid out from 67 - 82 i.e. 15 years. But god knows how they decide to change the calculations without a word

 

[kelhot2001]

Thanks... will ask my dad to check with cpf. I also find it ridiculous...

You could help your dad login to his cpf account and send email for verification. Get some black and white with regards to the reply and calculation.

 

[tmkedmw]

FISO,
new acronym for fast in slow out

You are correct logically. $7000/28yrs/12mths=$20.83 per month with takihng into account interest earned

But CPF Board got mysterious and illogical ways of calculating the payout after the topping up and the person's payout only increased by $10 after 7k top-up

 

[kelhot2001]

You are correct logically. $7000/28yrs/12mths=$20.83 per month with takihng into account interest earned

But CPF Board got mysterious and illogical ways of calculating the payout after the topping up and the person's payout only increased by $10 after 7k top-up

That is the bad part about cpf, even the cpf estimator when i question them about the basic payment, their reply is that even the 3stimated payout could be even lower.

 

[rrr2015]

$7000 can buy which annuity, can recommend?

Buy additional annuity better than simply leaving in RA?

 

[rrr2015]

I think once the payout started, any topup after that need to write in to request for increase in payout

Lets say a relative feedback that the CPF life monthly payout is insufficient.
Can a top up be made to that relative’s RA acct so that monthly payout can be increased?
Looking for a hassle free method to increase payout. Since RA interest rate can hit 6%, does this method sound logical?