Any Ceiling for contribution of CPF OA?

[Arcachon]

CPF Life works on the principle that people who die earlier (before 80) subsidy people who live longer (above 80).

We need to NOTE that CPF board pays interest for the minimum sum in your RA from age 55 to 65. Thereafter, CPF will not pay you any interest in your REDUCING BALANCE amount in your RA at age 65 onward when you start to draw down from your RA.

By right, your reducing balance in your RA should receive interest. Because CPF board needs to pay out from its 'own packet' when you live beyond 80 years, hence CPF is not paying you any interest from your reducing balance in your RA from age 65 onward so that CPF board could pay those living longer than 80 years the monthly payout till death from the interest CPF board save from not paying you interest in your reducing balance in your RA from age 65 onward.

So in effect, CPF board simply use the interest from your reducing balance in your RA (by not paying you any interest from age 65 onward) to pay to those who live longer than 80 years.

Was not told this way.

[teddybear]

Why you always listen without understanding or don't bother looking beyond what you are told?

If you always do so, then you wold have believed minority claiming that CPF Life give you 7.5% p.a. return!
Wow! Biggest LIE that that you and me are ever told!

He even CLAIMED that companies including PUB must pay taxes on Capital Injection!
And the fact that Olam did not pay any taxes on their Capital Injection means that minority is ACCUSING Olam (majority controlled by Temasek) of RIGGING THEIR BOOK so that it did not pay any taxes on their Capital Injection! Wow! Holy cow!
So I asked minority to confirm his CLAIM and now he refused to answer this question nor does he dare to asset this CLAIM again!
So what does this mean? minority is the BIGGEST LIAR and BULLSHITTER here! Ha ha ha!

Was not told this way.

CPF Life works on the principle that people who die earlier (before 80) subsidy people who live longer (above 80).

We need to NOTE that CPF board pays interest for the minimum sum in your RA from age 55 to 65. Thereafter, CPF will not pay you any interest in your REDUCING BALANCE amount in your RA at age 65 onward when you start to draw down from your RA.

By right, your reducing balance in your RA should receive interest. Because CPF board needs to pay out from its 'own packet' when you live beyond 80 years, hence CPF is not paying you any interest from your reducing balance in your RA from age 65 onward so that CPF board could pay those living longer than 80 years the monthly payout till death from the interest CPF board save from not paying you interest in your reducing balance in your RA from age 65 onward.

So in effect, CPF board simply use the interest from your reducing balance in your RA (by not paying you any interest from age 65 onward) to pay to those who live longer than 80 years.

[teddybear]

Didn't they claim that CPF Life gives 4% p.a. return/interest? Why then reducing balance in your RA receive no interest? Where does this money goes to? Hear-say claiming that is it profit for CPF Board?

The best thing for CPF Board to do to dispel such harmful rumours and prove that they really didn't profit a single cent is to split CPF Life into a separate financial account with annual financial statements and report so that there is total transparency of the financial status of CPF Life!

Well, if so simple and they still refused to do so, then those rumours cannot be dispelled and people will take it that they are true after all (since CPF board improving transparency means their rumours will be proven right after all)????????

CPF Life works on the principle that people who die earlier (before 80) subsidy people who live longer (above 80).

We need to NOTE that CPF board pays interest for the minimum sum in your RA from age 55 to 65. Thereafter, CPF will not pay you any interest in your REDUCING BALANCE amount in your RA at age 65 onward when you start to draw down from your RA.

By right, your reducing balance in your RA should receive interest. Because CPF board needs to pay out from its 'own packet' when you live beyond 80 years, hence CPF is not paying you any interest from your reducing balance in your RA from age 65 onward so that CPF board could pay those living longer than 80 years the monthly payout till death from the interest CPF board save from not paying you interest in your reducing balance in your RA from age 65 onward.

So in effect, CPF board simply use the interest from your reducing balance in your RA (by not paying you any interest from age 65 onward) to pay to those who live longer than 80 years.

[Hakuho]

Did you read LSH at all ?

Don't think I read everything written by him, but certain things I happened to read from LSH seems to be different from what you quoted him to be saying.
Please post the relevant link of what you quoted for us to verify before this can be discussed further.

https://leongszehian.com/?p=14766

Btw, this link was provided by you.

[Hakuho]

CPF Life works on the principle that people who die earlier (before 80) subsidy people who live longer (above 80).

We need to NOTE that CPF board pays interest for the minimum sum in your RA from age 55 to 65. Thereafter, CPF will not pay you any interest in your REDUCING BALANCE amount in your RA at age 65 onward when you start to draw down from your RA.

By right, your reducing balance in your RA should receive interest. Because CPF board needs to pay out from its 'own packet' when you live beyond 80 years, hence CPF is not paying you any interest from your reducing balance in your RA from age 65 onward so that CPF board could pay those living longer than 80 years the monthly payout till death from the interest CPF board save from not paying you interest in your reducing balance in your RA from age 65 onward.

So in effect, CPF board simply use the interest from your reducing balance in your RA (by not paying you any interest from age 65 onward) to pay to those who live longer than 80 years.

Thank you Amber, I am aware of the characteristics of the instrument.

Well written !

[teddybear]

Well, in this case, you had misquoted him!

Please read carefully what he wrote instead of what you "perceived" and don't anyhow attribute what you perceived to be what he wrote! This will be called "fake news"!

In summary, The statements you wrote and attributed to him is NOT TRUE!

At age 80, vested sum completely consumed

If the individual lives until 85, an additional $81 k paid

According to the webpage you provided, this is what he actually wrote:

After withdrawing $1,355 ($1,289 + $1,420 divided by 2) monthly until age 75, the account balance is estimated to be about $178,000.

Worse off by $96,128 at age 75?

So, does it mean that if one dies at age 75, he would in a sense, have lost about $96,128 ($178,000 – $81,872 ($79,172 + $84,572 divided by 2) bequest)?

After withdrawing $1,355 monthly until age 85, the account balance is estimated to be $74,325.

Worse off by $74,325 at age 85?

So, does it mean that if one dies at age 85, he would in a sense, have lost about $74,325 ($74,325 – $0 bequest).

The truth statements LSH wrote are as follow:

At age 80, CPF Life's bequest = 0.
(and not "vested sum completely consumed"!)

If the individual lives until 85, he would be "Worse off by $74,325 at age 85"!
(and not "an additional $81 k paid"!)

That is to say, if the individual lives until 85, he would be short-changed by $74,325 !!!!!!!!!!!!

https://leongszehian.com/?p=14766

Btw, this link was provided by you.

??

Did you read LSH at all ?

Full retirement sum FRS at age 55, $166 k

Vested sum at age 65, $244 k

Total monthly payouts 65-80, $244 k (at $1355 pm, LSH’s number)

At age 80, vested sum completely consumed

If the individual lives until 85, an additional $81 k paid

If the individual lives until 95, an additional $162 k paid

[Hakuho]

Well, in this case, you had misquoted him!

Please read carefully what he wrote instead of what you "perceived" and don't anyhow attribute what you perceived to be what he wrote! This will be called "fake news"!

In summary, The statements you wrote and attributed to him is NOT TRUE!



According to the webpage you provided, this is what he actually wrote:

After withdrawing $1,355 ($1,289 + $1,420 divided by 2) monthly until age 75, the account balance is estimated to be about $178,000.

Worse off by $96,128 at age 75?

So, does it mean that if one dies at age 75, he would in a sense, have lost about $96,128 ($178,000 – $81,872 ($79,172 + $84,572 divided by 2) bequest)?

After withdrawing $1,355 monthly until age 85, the account balance is estimated to be $74,325.

Worse off by $74,325 at age 85?

So, does it mean that if one dies at age 85, he would in a sense, have lost about $74,325 ($74,325 – $0 bequest).

The truth statements LSH wrote are as follow:

At age 80, CPF Life's bequest = 0.
(and not "vested sum completely consumed"!)

If the individual lives until 85, he would be "Worse off by $74,325 at age 85"!
(and not "an additional $81 k paid"!)

That is to say, if the individual lives until 85, he would be short-changed by $74,325 !!!!!!!!!!!!

None of the calculation I posted came from LSH’s article, what are you talking about?

I was saying that his calculation is flawed, and the flaw so obvious that only the clueless like you would embrace.


My calculation:
Account balance at age 65 = $244 k
Total monthly payouts by age 75 = $162 k ($1355 x 12 x 10)
Account balance at age 75 = $82 k ($244 k - $162 k)


LSH calculation:
Account balance at age 75 = $178 k, to you his is correct?


From CPF Life:
Bequest at age 75 = $82 k; this figure corresponds with the balance in my calculation.

So WHERE is the short-change that you claimed?

Are you so dumb to just believe LSH without checking his calculations?

[cbsh38584]

CPF is more than enough for retirement Planning if you manage it wisely - Starting pay $2500 @age25
=============================================================================
There are 3 type of min retirement sum as from 2016 Figure.

2016 retirement sum figure for BRS (80.5k) , FRS ($161k) & ERS ($241k)
2020 retirement sum figure for BRS (90.5k) , FRS ($181k) & ERS ($271k) inflation est 2.5%

1. Basic Retirement Sum(BRS) = $80.5k with 2/3/4 rm HDB pledged
Monthly payout for life@65 = $660-$720

2. Full Retirement Sum (FRS) = $161k (No 2/3/4 rm HDB pledged)
Monthly payout for life@65 = $1220-$1320

3.Enhanced Retirement Sum (ERS) = $241,500
Those who wish to put more saving in CPF life - optional
Monthly payout for life@65 = $1770-$1920.

Max contribution to your CPF for 2015 = $31.45k / yr (20% of your Salary + 17% employer + voluntary cash)
Max contribution to your CPF for 2016 = $37.75k / yr (20% of your Salary + 17% employer + voluntary cash)


Many of them are unaware of how their annual income + CPF adds up over 30 years of working (age 25 to age 55).

Starting pay $2500 (3% Salary increment yearly till age 55).Do nothing to your CPF acct
==================================================================
At age 25 - OA=$7.1k. SA=$1.9k MA=$2.5k

By age 35, OA=$112k. SA=33k. MA=41k

By age 45 - OA=$268k. SA=120k. MA=97k

By age 55 - OA=$479k. SA=354k. MA = $138k

** When MA (now call BHS) ceiling is reached ($49.8k) Excess goes to SA. But if SA (4%) min FRS ($161k) is also reached. MA (4%) excess goes to OA (2.5%)

NET CASH Income (take home pay) earned accumulated for 30 years of working (age 25 to age 55)= $1.3 million dollars very very more than enough
for the HDB BTO 4rm HDB flat $350k (income >$8k no HDB grant) . I did not include variable or performance bonus which range from 0.5 mth to 3 mths
& also your partner income whic may be also $1.3m if she/he has the same earning power.

If you have the job stability & the financial capablilty . Consider on How To Manage Your CPF Money by Shift all your money from Ordinary Acct to Special Acct as
YOUNG as possible. You will get extra >60k to 100k more with no sweat involved at all.Just transfering OA-SA every Year . It MUST BE DONE when you are young.


Shift CPF-OA (2.5%-3.5%) to SA (4-5%) at YOUNG age & start to transfer OA (2.5% to SA(4%)
------------------------------------------------------------------------------------------------------------------------------
At age 25 - OA=$7.1k. SA=$1.9k. MA=$2.5k.

By age 35, OA=0 (vs 112k). SA=156k (vs 33k) . MA=41k

By 45 - OA=$85k.(vs 268k) SA=347k (vs 120k). MA=93k

By 55 - OA=$341k (vs$479k) @SA=$550k to 600k. (vs $354k). @MA=$100k - 135k

@ SA=550k to $600k depend on the CPF board yearly adjustment of the min sum retirement % increment. Range from 2.5% to 3.5%.

@ MA= $100k to $135k also depend on the CPF board yearly adjustment on the MA & your medishield life selection from Govt b2 to private A class
MA (now call BHS) ceiling is reached. MA Excess goes to SA. But if SA min sum is also reached. MA excess goes to OA

Remember, you are not voluntary CASH contribution in the CPF. Just only your 20% of your Salary + 17% from your employer.

================================================================================================================
I believe only the minorities have the financial capablity , determination & discipline to prorities their retirement need when young & transfer from OA
to SA to see the magic of compouned interest in their special acct. Young prefer WANTS 1st & ignore the NEEDS. if they mismanage the CASH & CPF,
they will be in trouble when they grow old. Low cash & low CPF.

I do not recommend to voluntary contribute cash into CPF when young unless you really have more more than enough cash either from your parent or you yourself.
Maybe when your reach late 40s & your children are age 21 & start working . You have extra cash. Can consider voluntary cash into CPF if min sum is met.
By age 55, you can withdraw all after meeting the min sum (161k). Eg OA=200k SA=201k MA=49.8k(cannot touch). U can withdraw all OA=200k + SA=40k
(201k minus 161k) if you chose FRS ($161k).


Since most of the young couple likely to marry late between age 30-40. Why not set yourself a tgt to hit your Special acct min $100k at age 35
(By age 35, OA=$112k. SA=33k --- Move 67k from your OA to SA (33k + 67k ) to increase your SA to 100k tgt.


Once your SA=100k is reached by age 35. You know that the BIG WORRY min retirement need is SETTLED & can concentrate to build your OA .
Any extra contribution to your SA is extra extra bonus.



$100k compounded 4% interest for 30 yrs. U will have at least 325k at age 65. A very basic retirement est 2.5k/mth at age 65 for life.
http://www.moneychimp.com/calculator...calculator.htm



FYI, those wiives who decided to become a homemaker to take care of children & self employed . You better start to think now about your retirement as you have much lesser CPF for retirement. A umarried man or women. You are also need to plan early as MAID is the only person which you need to depend on when you grow old.

When I decided to plan for my retirement age. I know CPF is one of the best scheme avail. GUARANTEE by govt + HIGH interest rate - 2.5% to 5% compounded annually. I show less interest to know about the CPF life after age 55. I am more focus on after I set side 166k (min FRS for 2017). The main important pt is that I am still able to withdraw the whole lump sum out if I want after I set aside the min FRS 166k at age 55. The bal CPF money in my OA + SA become my "SUNSET saving acct" or for emergency used or FIXED deposit like any POSB /uob/ocbc saving acct (only 0.3% interest) & still enjoy 2.5% to 5% GUARANTEE high interest rate.

Let assume 1 day before age 55
CPF OA (2.5% to 3.5%) = 400k
CPF SA (4% to 5%) = 466k
CPF MA (4%) = 52k

I day After Age 55
CPF OA (2.5% to 3.5%) = 400k
CPF SA (4% to 5%) = $300k (466k -166k - FRS)
CPF RA (5% to 6%) = 166k (min FRS is 166k for 2017)
CPF MA (4%) = 52k.

At age 55, I am able to withdraw out 400k(OA) + 300k(SA) = 700k one lump sum. But I prefer to leave it in my CPF to continue to enjoy
Guarantee + high interest rate. Maybe I will withdraw 12k yearly from the interest earn from my 300k in my CPF SA (4% tp 5%) to go for USA/Euro etc for annual
holiday. As for the CPF OA, if there is really a big crisis comes, just withdraw partially to invest in beaten down global blue chip stock like Apple , Amazon ,
Alibaba etc or maybe buy ppty. I may even treat as a legacy for my children if I want it. My cousin got 30k cash cheque from CPF board from his father's CPF MA acct after his father passed away.

[teddybear]

No, the part you claimed that LSH calculation is flawed is NOT REALLY FLAWED! - In fact, it is correct because he based his calculation based on information provided by CPF Board!
If you go to this CPF Board's webpage here:
https://www.cpf.gov.sg/eSvc/Web/Sche...or/RECalculate

You will see that CPF Board states that:

"1. The monthly payouts are based on the Retirement Account balance provided. The payout range is based on interest rates of between 3.75% and 4.25%"

Plan LIFE Standard
Monthly payout1 from 65 $1,261 - $1,385
Bequest left for your beneficiaries at selected ages2
Bequest at age 65 $233,793 - $243,193
Bequest at age 75 $76,888 - $82,390
Bequest at age 85 $0

So, LSH calculation included CPF Board paying average of 4% interest rate p.a. for your retirement account money (that has not been paid out yet) after 65 years old.

The flawed part of LSH calculation is that if you deposit $166k at 55 years old, and based on CPF Board's claim that they paid 5% interest for 1st $60k and 4% interest for remaining figure, your account balance at age 65 years old should be = $258.8k (and not $244k)!!!!!!!!!!!!!!
The $258.8k is calculated using the online calculator here:
https://make-money-secrets.blogspot....payreturn.html
So, really, LSH calculation has under-estimated the short-change based on $244k (when in fact he should have used $258.8k which would have led to larger short-change figure!)!


However, you claimed that:

I was saying that his calculation is flawed, and the flaw so obvious that only the clueless like you would embrace.

My calculation:
Account balance at age 65 = $244 k
Total monthly payouts by age 75 = $162 k ($1355 x 12 x 10)
Account balance at age 75 = $82 k ($244 k - $162 k)

And in your calculation which you claimed to be correct(and you claimed that LSH is wrong), you showed us a calculation where you asserted that the interest rate paid for your outstanding retirement account money (which has NOT YET been paid out) after 65 years old = 0% !!!!!!!!!

If what you asserted is TRUE then can you conclude that "I was saying that his calculation is flawed, and the flaw so obvious that only the clueless like you would embrace."!

However, if what you asserted is TRUE, then, you are also claiming that CPF Board is lying to all of us and that you are asserting that CPF Board paid 0% interest for your retirement account money after 65 years old (contrary to CPF Board's statement on their webpage which states that "The payout range is based on interest rates of between 3.75% and 4.25%")????????

None of the calculation I posted came from LSH’s article, what are you talking about?

I was saying that his calculation is flawed, and the flaw so obvious that only the clueless like you would embrace.


My calculation:
Account balance at age 65 = $244 k
Total monthly payouts by age 75 = $162 k ($1355 x 12 x 10)
Account balance at age 75 = $82 k ($244 k - $162 k)


LSH calculation:
Account balance at age 75 = $178 k, to you his is correct?


From CPF Life:
Bequest at age 75 = $82 k; this figure corresponds with the balance in my calculation.

So WHERE is the short-change that you claimed?

Are you so dumb to just believe LSH without checking his calculations?

[Hakuho]

The interest rate ALREADY applied by CPF Life to determine the monthly payout amount, what are you talking about?

You think the monthly payout amount is fictitious siboh? If so, then I might as well have used $1533 instead of $1355 lo.

LOL

[teddybear]

Hakuho,
Since you continue to assert that CPF pays you 0% interest rate for your outstanding retirement account money (which has NOT YET been paid out) after 65 years old, SO you are PERSISTING in your CLAIM that CPF Board is lying to all of us (contrary to CPF Board's statement on their webpage which states that "The payout range is based on interest rates of between 3.75% and 4.25%")????????

Wow! Based on your claim that CPF Board can don't pay interest on the money that you must deposit with them after 65 years old means that such business model Banks will be very happy to adopt to make more money too! Imagine they pay you interest only for 10 years and thereafter these money are FREE for them to invest and make more money which they can pocket themselves?!!!!

The interest rate ALREADY applied by CPF Life to determine the monthly payout amount, what are you talking about?

You think the monthly payout amount is fictitious siboh? If so, then I might as well have used $1533 instead of $1355 lo.

LOL

[chestnut]

Teddy, please refer to Amber's reply.

CPF Life works on the principle that people who die earlier (before 80) subsidy people who live longer (above 80).

We need to NOTE that CPF board pays interest for the minimum sum in your RA from age 55 to 65. Thereafter, CPF will not pay you any interest in your REDUCING BALANCE amount in your RA at age 65 onward when you start to draw down from your RA.

By right, your reducing balance in your RA should receive interest. Because CPF board needs to pay out from its 'own packet' when you live beyond 80 years, hence CPF is not paying you any interest from your reducing balance in your RA from age 65 onward so that CPF board could pay those living longer than 80 years the monthly payout till death from the interest CPF board save from not paying you interest in your reducing balance in your RA from age 65 onward.

So in effect, CPF board simply use the interest from your reducing balance in your RA (by not paying you any interest from age 65 onward) to pay to those who live longer than 80 years.

[teddybear]

Amber's post contain many QUESTIONs (not answered/clarified)!

The best for CPF Board is still to be transparent and split CPF Life's financial accounts into a separate entity with annual financial statements and reports (and show that they indeed pay 4% interest on those money after 65 years old (when not yet paid out), otherwise issues like Hakuho (and many people like him) will
continue to assert that CPF pays you 0% interest rate for your outstanding retirement account money (which has NOT YET been paid out) after 65 years old and PERSISTING in their CLAIM that CPF Board is lying to all of us (contrary to CPF Board's statement on their webpage which states that "The payout range is based on interest rates of between 3.75% and 4.25%")????????

If so simple like separate CPF Life annual financial statements and reports CPF also cannot do, then really, we can't dispel rumours and hearsay and assertions like those made by Hakuho and their silence will give people the impression that what Hakuho claimed is true?

Teddy, please refer to Amber's reply.

[chestnut]

@ 65, the amount in RA goes into paying CPF life. It will s the whole anount

[teddybear]

So? CPF Life is an annuity, your money in annuity NOT PAID OUT yet will still earns interest right? Or are you also claiming like Hakuho that CPF pays 0% interest after 65 years old and that CPF Board is lying to us???????

@ 65, the amount in RA goes into paying CPF life.

[chestnut]

So? CPF Life is an annuity, your money in annuity NOT PAID OUT yet will still earns interest right? Or are you also claiming like Hakuho that CPF pays 0% interest after 65 years old and that CPF Board is lying to us???????

I agree w amber.

Quote from amber

CPF Life works on the principle that people who die earlier (before 80) subsidy people who live longer (above 80).

We need to NOTE that CPF board pays interest for the minimum sum in your RA from age 55 to 65. Thereafter, CPF will not pay you any interest in your REDUCING BALANCE amount in your RA at age 65 onward when you start to draw down from your RA.

[Kelonguni]

Thanks for sharing and enlightening. Many people (myself included) are not fully informed.

So those who intend to park all their excess into CPF SA and OA have got to be aware that at the end of the day (65 years old), the not-big-not-small sum you have accumulated will not be able to accumulate much interest, and likely won't be sufficient to buy you any property in the future, given that at 65 years old (even 55 years old), banks simply won't be giving you any or much finance.

Maybe can withdraw between 55 to 65 and park in SSB, or some very low interest instrument at best.

Good luck.

[chestnut]

Thanks for sharing and enlightening. Many people (myself included) are not fully informed.

So those who intend to park all their excess into CPF SA and OA have got to be aware that at the end of the day (65 years old), the not-big-not-small sum you have accumulated will not be able to accumulate much interest, and likely won't be sufficient to buy you any property in the future, given that at 65 years old (even 55 years old), banks simply won't be giving you any or much finance.

Maybe can withdraw between 55 to 65 and park in SSB, or some very low interest instrument at best.

Good luck.

Excess in SA and OA will still get interest.

[Khng8]

Only the RA after 65 years old will not accumulate interest right?
Monies in OA and SA continue to earn interest is how I read Amber's post.
And you can still withdraw from the SA as you want after age 55.

[Kelonguni]

Excess in SA and OA will still get interest.

So the idea is only leave the bare minimum in the retirement account for drawdown.

I had thought no more SA after 65, but I guess can still place in SA or worst case OA if desired based on what you just said.

It's quite complicated for me actually this dependence on CPF. Honestly, I'd rather depend on stocks and property which I am more familiar. Never have yields gone below 3%; mostly over 6% over the last 10 years.

But maybe if a stroke or heart attack strikes and I survive, CPF is the no brainier to adopt.

[Kelonguni]

The thing I don't understand is why differentiate between OA and RA after 65 years old if withdrawals can be made as you like? Anyone knows?

[chestnut]

At 55. RA will be created. There will be a minimum sum to be put in RA. CPF will take from SA account to put into RA. If not enough from SA, will take from OA.

If minimum sum is met, you have a choice to draw as and when u like from OA OR SA.

For more info, go Cpf website.

So the idea is only leave the bare minimum in the retirement account
for drawdown.

I had thought no more SA after 65, but I guess can still place in SA or worst case OA if desired based on what you just said.

It's quite complicated for me actually this dependence on CPF. Honestly, I'd rather depend on stocks and property which I am more familiar. Never have yields gone below 3%; mostly over 6% over the last 10 years.

But maybe if a stroke or heart attack strikes and I survive, CPF is the no brainier to adopt.

[gentlemanofleisure]

setting aside money in RA is like buying a guarantee life annuity.
The amount set aside would compound until you are 65.
At 65 the whole sum stop getting i/r but start giving payout.
For comparison, this is NTUC. http://www.income.com.sg/forms/broch....aspx?ext=.pdf

The remaining amount in that's not pumped into RA will remain in CPF.

I also did a 5 minutes quick calculation on IRR without the bequeath.

On another note, I just read this on CPF website.
You may apply for an exemption from setting aside a retirement sum if you:​
have your own life annuity bought using cash. The monthly payout you receive from the life annuity should be equal to or above the full monthly payout; or
are a pensioner receiving a monthly pension equal to or above the full monthly payout.

[Khng8]

At 55. RA will be created. There will be a minimum sum to be put in RA. CPF will take from SA account to put into RA. If not enough from SA, will take from OA.

If minimum sum is met, you have a choice to draw as and when u like from OA OR SA.

For more info, go Cpf website.

Any withdrawal after age 55 will be from the SA first and then OA. CPF will want to avoid paying you the higher interest.

[DHT]

I am paying my property loan with CPF. Can I continue paying as per normal from OA after 55?

[thomastansb]

I will take everything out from CPF at 55. CPF always change their rules. Who knows one day, they say you can't withdraw anymore even though you met the MS. I have trust issues with CPF.

You don't believe me, call up CPF. Ask them in 21 years time (I am 34), can anyone guarantee you can withdraw everything above and beyond the MS. They will tell you they can't tell you. I don't trust them but yet, there is no better place to earn that 2.5 - 5% interest. So suck thumb LL and pray you can withdraw everything at 55. The MS is fine since it is for my retirement anyway.

[otansg]

I will take everything out from CPF at 55. CPF always change their rules. Who knows one day, they say you can't withdraw anymore even though you met the MS. I have trust issues with CPF.

You don't believe me, call up CPF. Ask them in 21 years time (I am 34), can anyone guarantee you can withdraw everything above and beyond the MS. They will tell you they can't tell you. I don't trust them but yet, there is no better place to earn that 2.5 - 5% interest. So suck thumb LL and pray you can withdraw everything at 55. The MS is fine since it is for my retirement anyway.

One thing about this place (sg gov) is that most policies changes are not retroactive. I believed they understand how not to lose trust.
If the rule today says that you can withdraw whatever after setting aside MS at 55, you can be sure that it will apply to those that are 55 today. Of course if you are not 55 today, then you are subjected to changes made in the future ( I think that is why they cannot answer your question).

[thomastansb]

That is why for those who want to get decent returns at virtually zero risk, this is a risk to factor in.

One thing about this place (sg gov) is that most policies changes are not retroactive. I believed they understand how not to lose trust.
If the rule today says that you can withdraw whatever after setting aside MS at 55, you can be sure that it will apply to those that are 55 today. Of course if you are not 55 today, then you are subjected to changes made in the future ( I think that is why they cannot answer your question).

[teddybear]

Ok, so you and Hakuho double asserted that CPF pays you 0% interest rate for your outstanding retirement account money (which has NOT YET been paid out) after 65 years old, and SO you both are PERSISTING in your CLAIM that CPF Board is lying to all of us (contrary to CPF Board's statement on their webpage which states that "The payout range is based on interest rates of between 3.75% and 4.25%")!

I believe both you and Hakuho's CLAIM are not true, but I have nothing to help CPF defense itself against such allegations. It is best for CPF to be more transparent to avoid such claims (and many more in coffeeshop talk)!

I agree w amber.

Quote from amber

CPF Life works on the principle that people who die earlier (before 80) subsidy people who live longer (above 80).

We need to NOTE that CPF board pays interest for the minimum sum in your RA from age 55 to 65. Thereafter, CPF will not pay you any interest in your REDUCING BALANCE amount in your RA at age 65 onward when you start to draw down from your RA.

Amber's post contain many QUESTIONs (not answered/clarified)!

The best for CPF Board is still to be transparent and split CPF Life's financial accounts into a separate entity with annual financial statements and reports (and show that they indeed pay 4% interest on those money after 65 years old (when not yet paid out), otherwise issues like Hakuho (and many people like him) will
continue to assert that CPF pays you 0% interest rate for your outstanding retirement account money (which has NOT YET been paid out) after 65 years old and PERSISTING in their CLAIM that CPF Board is lying to all of us (contrary to CPF Board's statement on their webpage which states that "The payout range is based on interest rates of between 3.75% and 4.25%")????????

If so simple like separate CPF Life annual financial statements and reports CPF also cannot do, then really, we can't dispel rumours and hearsay and assertions like those made by Hakuho and their silence will give people the impression that what Hakuho claimed is true?

[Hakuho]

The interest rate ALREADY applied by CPF Life to determine the monthly payout amount, what are you talking about?

You think the monthly payout amount is fictitious siboh? If so, then I might as well have used $1533 instead of $1355 lo.

LOL

Read properly la, the first sentence said zero interest rate for CPF Life?

And when did I say CPF Life does not pay interest.

I think Amber is probably also being misunderstood la.