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Thread: Any Ceiling for contribution of CPF OA?

  1. #961

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    Quote Originally Posted by cbsh38584 View Post
    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)

    2018 retirement sum figure for BRS (85.0k) , FRS ($171k) & ERS ($249k)

    2020 retirement sum figure for BRS (90.5k) , FRS (est $181k) & ERS (est $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.
    Pls go to your CPF acct. Interest has been credited into your CPF OA (2.5% to 3.5%) , CPF SA (4% to 5%) & CPF MA (4%).
    On tgt to reach $1m before age 60. It will be throughly my emergency fund either for my housing , children education etc


    Current SPECIAL ACCT allocation rate for age 50 to 55 is
    OA = 15%
    SA = 11.5% (>age 55 drop to only 3.5%)
    MA = 10.5%


  2. #962

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    [QUOTE=cbsh38584;533470]Pls go to your CPF acct. Interest has been credited into your CPF OA (2.5% to 3.5%) , CPF SA (4% to 5%) & CPF MA (4%).
    On tgt to reach $1m before age 60. It will be throughly my emergency fund either for my housing , children education etc


    Current SPECIAL ACCT allocation rate for age 50 to 55 is
    OA = 15%
    SA = 11.5% (>age 55 drop to only 3.5%)
    MA = 10.5%[/QUOTE

    It will be truely my emergency fund either for my housing , children education etc


  3. #963

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    CPF - $1million before age 60 if you plan wisely
    =====================================

    Check your CPF.The interest has been credited into your acct.

    --------------------------------------------------------------------

    Min CPF life retirement sum for those who turn age 55 now
    =====================================
    2018 retirement sum - BRS (85k) , FRS ($171k) & ERS ($249k)
    1. Basic Retirement Sum (BRS) = $85k with 2/3/4 rm HDB pledged.
    Mthly payout for life starting @age65 =$720 to $770
    ---------------------------------------------------------------------------------

    2. Full Retirement Sum (FRS) = $171k
    Mthly payout for life@age 65 = $1320-$1410

    --------------------------------------------------------------------------------
    3.Enhanced Retirement Sum (ERS) = $256k (optional)
    Mthly payout for life@age 65 = $1910- $2060

    ----------------------------------------------------------------------------------
    The max amt of Voluntary Contribution (VC) for a person is $37.75k per year including Cash + employee & employer.
    $37.75k / yr is (20% Salary + 17% employer + voluntary cash)

    Any excess of $37.75k. CPF will return back to you with ZERO interest. This is to prevent the Rich people from
    "depositing" thousand or million of their excess $ in a guarantee & risk free & high interest rate CPF acct.


    ------------------------------------------------------------------------------------------------------------------------------
    CPF is more than enough for retirement Planning if you manage it wisely - Starting pay $2500 @age25
    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%)

    --------------------------------------------------------------------------------
    Continuous Shifting your CPF-OA (2.5%-3.5%) to SA (4-5%) at YOUNG age to earn higher interest of 4-5% instead of 2.5-3.5%
    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=est $580k @ age 65

    @ MA= est $135k @ age 65.

    OA (85k)+ SA (580k) +MA ($135k) = $800 at age 55 by awalys moving your OA (2.5%-3.5%) to SA (4%-5%).

    Remember, it did not nclude voluntary CASH contribution in the CPF. Just only your 20% of your Salary + 17% from your employer. So to reach $1million in your CPF acct before age 60 is not a problem at all if you are continously employed till age 55.


    人无远虑, 必有近忧.
    --------------------------
    If one has no long-term considerations, he can hardly avoid troubles every now and then.; He who has no anxious thoughts for the future will find trouble right at hand.; If a man is not farsighted, he is bound to encounter difficulties in the near future.; Those who do not plan for the future will find trouble at their doorstep


    By age 60. you can say bye bye to Tension. Hello to Pension.


  4. #964
    Ultimate Underdog
    Join Date
    May 2012
    Posts
    3,763

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    I do worry about the case if even 1 in 5 or 1 in 10 Singaporeans reach CPF of $1 million by 60 every batch. Imagine age group evenly distributed, every batch will have something like 50,000 persons reaching 60. We are talking about easily 5,000 to 10,000 persons EVERY YEAR having $1 million liquidity purely in CPF alone.

    Can you imagine the liquidity when they all withdraw the funds (especially when they are likely to have other sources of funds combined)?


    Quote Originally Posted by cbsh38584 View Post
    CPF - $1million before age 60 if you plan wisely
    =====================================

    Check your CPF.The interest has been credited into your acct.

    --------------------------------------------------------------------

    Min CPF life retirement sum for those who turn age 55 now
    =====================================
    2018 retirement sum - BRS (85k) , FRS ($171k) & ERS ($249k)
    1. Basic Retirement Sum (BRS) = $85k with 2/3/4 rm HDB pledged.
    Mthly payout for life starting @age65 =$720 to $770
    ---------------------------------------------------------------------------------

    2. Full Retirement Sum (FRS) = $171k
    Mthly payout for life@age 65 = $1320-$1410

    --------------------------------------------------------------------------------
    3.Enhanced Retirement Sum (ERS) = $256k (optional)
    Mthly payout for life@age 65 = $1910- $2060

    ----------------------------------------------------------------------------------
    The max amt of Voluntary Contribution (VC) for a person is $37.75k per year including Cash + employee & employer.
    $37.75k / yr is (20% Salary + 17% employer + voluntary cash)

    Any excess of $37.75k. CPF will return back to you with ZERO interest. This is to prevent the Rich people from
    "depositing" thousand or million of their excess $ in a guarantee & risk free & high interest rate CPF acct.


    ------------------------------------------------------------------------------------------------------------------------------
    CPF is more than enough for retirement Planning if you manage it wisely - Starting pay $2500 @age25
    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%)

    --------------------------------------------------------------------------------
    Continuous Shifting your CPF-OA (2.5%-3.5%) to SA (4-5%) at YOUNG age to earn higher interest of 4-5% instead of 2.5-3.5%
    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=est $580k @ age 65

    @ MA= est $135k @ age 65.

    OA (85k)+ SA (580k) +MA ($135k) = $800 at age 55 by awalys moving your OA (2.5%-3.5%) to SA (4%-5%).

    Remember, it did not nclude voluntary CASH contribution in the CPF. Just only your 20% of your Salary + 17% from your employer. So to reach $1million in your CPF acct before age 60 is not a problem at all if you are continously employed till age 55.


    人无远虑, 必有近忧.
    --------------------------
    If one has no long-term considerations, he can hardly avoid troubles every now and then.; He who has no anxious thoughts for the future will find trouble right at hand.; If a man is not farsighted, he is bound to encounter difficulties in the near future.; Those who do not plan for the future will find trouble at their doorstep


    By age 60. you can say bye bye to Tension. Hello to Pension.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.


  5. #965

    Default

    Quote Originally Posted by Kelonguni View Post
    I do worry about the case if even 1 in 5 or 1 in 10 Singaporeans reach CPF of $1 million by 60 every batch. Imagine age group evenly distributed, every batch will have something like 50,000 persons reaching 60. We are talking about easily 5,000 to 10,000 persons EVERY YEAR having $1 million liquidity purely in CPF alone.

    Can you imagine the liquidity when they all withdraw the funds (especially when they are likely to have other sources of funds combined)?
    I never believe in Money after watching "The Ascent of Money". But there are still people who believe it, is like that one according to Jim Rohn.



  6. #966
    OCR properties going to crash! teddybear's Avatar
    Join Date
    Mar 2009
    Posts
    10,746

    Default

    On this, I agree with you - I never trust paper money!
    Many govs will just print and print their way out when they lack money!
    Look at the money supply in circulation, M1+M2+M3! Scary!

    Luckily they can only print paper money but can't print freehold land, no wonder property prices keep going up (regardless of whatever warning of bubble they are sounding)!

    Quote Originally Posted by Arcachon View Post
    I never believe in Money after watching "The Ascent of Money". But there are still people who believe it, is like that one according to Jim Rohn.



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