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(4 things you need to know about your new CPF statement.)
I hope my blog has not caused too much trouble for the authorities.
Even Facebook reminded me that it is time.
Er... OK, I am not quite sure what to make of the last comment (and some say I am cryptic).
Anyway, although I thought I might skip it this year, a remark from a reader on FB gave me a nudge.
If by revealing my CPF numbers again, AK can be old, slimmer and handsome, OK, I do it.
What?
You surprised AK is like that?
Alamak, you didn't know?
I am human too!
Hey, who wants to be old, fat and ugly?
Cannot do anything about old but if can do away with the fat and ugly, that's two out of three!
I win!
OK, the numbers:
How much has my CPF-SA money grown from the year before?
See related post at the end of this blog.
Worried about the projected 3% yearly increase in Minimum Sum (Full Retirement Sum)?
Not me.
How did this "miracle" happen?
If you have to ask, you must be a new reader.
See related post at the end of this blog.
Ask why does having more money in our CPF-SA and as early as possible make sense?
How to do this?
See the related post at the end of this blog.
Then, go to the right side bar of my blog to read more of my blogs related to the CPF.
If you are a regular reader, you should be smiling now!
Huat ah!
Truly Happy New Year!
Related post: CPF-SA outperformed.
Bloggy Award
34 comments:
Hi AK,
I also want to be old(confirmed), slim (reasonable) and handsome (I hope)....
SA interest received = $8323 :)
Big thanks to your blog, please continue "self-chat" for year 2017.
Happy New Year,
Best Regards
JQ
Hi JQ,
Isn't it wonderful how compound interest increases our CPF savings and improves our mood? ;)
Amazingly Happy New Year! :)
$3,000+ for me! Young SA cant wait to grow older :)
Hi AK:
Is always a joy to read your blog.
Please continue to share with readers your wisdom on investment.
Have a healthily and wealthy 2017.
Cheers.
Hi AK:
Is is a joy reading your post. Please continue to share with readers your wisdom on investment.
Have a healthy and wealthy 2017.
Cheers.
Hi simplyme,
Time flies. It seems like yesterday that I was 25. Now, I wish I could turn back the clock. ;p
Hi tcc,
Alamak. I am only talking to myself here in my blog.
I never share any wisdom or investment here. -.-"
Happy New Year! ;)
My interest is 5134 + abt 1.9k from the MA trf to SA. I looked at my SA balance and felt very sad. In about 2 years time, I will not be able to do min sum top up for tax relief. Sob sob....
Hi pf,
It is a happy problem. Gong xi fa cai! ;p
Hi AK,
Is it true that ALL top-up monies + interest cannot be withdrawn even if we are well in excess of the enhanced retirement sum?
e.g. we have $1M in RA, and ERS is 300k. the full 1M (less mandatory contributions) will turn into our annuity?
Also, the annuity is calculated based on 20 years expectancy. If we pass away before the 20 year mark, is it correct to say there will be no savings left for our kids too?
Thanks!
Hi test,
Your example is far fetched. If the ERS is $300K by the time you are 55, if you like, only $300K will find its way into your RA. $1m in the RA will never happen because at age 55 the balance $700K will either stay in your OA and SA or you could withdraw.
You might be interested in these blogs:
1. Why CPF only cares how much to take...
2. Worried you won't live to enjoy all your money?
This might be helpful:
Building a cornerstone in retirement funding.
Take care of ourselves. Our kids can take care of themselves. ;)
Hi AK,
I have clarified with CPF previously and they mentioned all top-ups (with its interest) cannot be withdrawn even if you have already hit ERS.
E.g.$1m made up of $600k mandatory contributions, $400k top-ups with interest, ERS = 300k
i can only withdraw 300k, and 700k goes into annuity.
Can confirm???
Hi test,
You might want to clarify with CPFB again. ;)
Testing to see if I can send a comment.
Hi AK Bro,
Thank you for sharing the CPF's stragtegy to transfer the OA to SA. I followed it and very happy to receive SA: $7485.20. My wife earned $6000 for her SA. The magic of compounding is amazing and it is helping me to build up my retirement fund. http://investmindz.blogspot.sg/2017/01/retirment-strategy-2016-cpf-interest.html
Wishing you a prosperous Chinese New Year. Huat, Huat, Huat....
My comment in the morning is not up as well... must be too lengthy so AK do not approved. Sighz
Hi LS,
The system chucked your long comment into the SPAM folder. Thanks to your second comment, I went and took a look. Thanks for doing some heavy lifting. :)
Hi IM,
Glad it has worked for you too.
I always tell people this is not rocket science. It is simple math. ;)
Gong Xi Fa Cai! :)
No problem. Glad my information will be some help to others and help to clear some doubts.
Originally thinking if I should email to you instead since a bit on the long side. Maybe even compiling more information as a guest post. But since I'm lazy, I rather skimp on the effort and just post as a comment.
P.S. never expected my comment to go into spam folder. Will not be long winded in the future...
P.S.S hard not to be long winded with my style of writing and use of citation...sighz
Hi LS,
Actually, a guest blog would have been better because fewer people read the comments section. I can understand the part about being lazy though. ;p
My blog receives plenty of SPAM, from money lenders, course providers etc. Most of the time, the program is able to differentiate bona fide comments from SPAM. Once in a while, something falls through a crack. -.-"
I understand that a guest blog post will allow the information to reach more people. But it will be too much work, especially when I'm the type of person who always do maximum research, triple check my work and provide all the citations/links...
Just the previous long winded comment took me more than 1 hour since I research/check many times to ensure the accuracy of the comment.
Can't imagine if I decide to do another guess post... the last guest post I sent you last year took me 5-6 hours if I did not remember wrongly...
Copy part of my comment and put it up as your new post if you want this information to reach more audience. Ha ha :p
Hi LS,
I think I will remove your comment and upload it as a guest blog. ;p
'I choose a lazy person to do a hard job. Because a lazy person will find an easy way to do it.' - Bill Gates.
AK is super lazy! ;p
Sure AK, if this will help to get the message to more audience, why not?
Especially since I have seen this questions on withdrawal of top-up money coming up quite often. I believed a post can help to clarify on this matter.
And cutting and pasting it as guest blog is not really called lazy. I prefer to use the term "efficient". Ha ha ;please
P.S. maybe there is no need to remove the whole comment. Just take away all and keep the summary part. This is so the readers on the comments can also benefit from it...
Hi LS,
Unfortunately, it is impossible to keep only part of the comment. It is either the whole thing or nothing. Maybe, I will copy and paste into a guest blog instead of cut and paste. I know Google doesn't like cookie cutter tactics but I am not running my blog as a business. ;p
Hi AK,
Just remove the comment then.
For the folks who missed my comment that is removed by AK (because he is evil and don't like me. Joking, lol), please see the summary below.
1) If it is about FRS, you can withdraw all the remaining funds that exceeds the FRS amount,
2) if it is about BRS, the rule applies and you cannot withdraw the top-up money and its interest. You can only withdraw remaining funds if your RA still exceed BRS after deducting the top-up and its interest
Hi LS,
OK. Will do.
Bad AK! Bad AK! ;p
I will post a link to the guest blog here when it happens. :)
Hi
1) I understand that first 60k earns an extra 1% with 20k from OA. How does the rest of the 40k get split between SA and MA?
2) For a person who is >55 years, he will earn an extra 1% on the first 30k of their CPF combined balance with up to 20k from OA. How do we know what is this combined balance?
Thanks!
Extra Interest
An extra 1% interest per annum is currently paid on the first $60,000 of a member’s combined balances (with up to $20,000 from OA).
Extra interest received on monies in the OA will go into the member’s SA or RA to enhance his or her retirement savings. If a member is above 55 years old and participates in the CPF LIFE scheme, the extra interest will still be earned on his combined balances, which includes the savings used for CPF LIFE.
Additional Extra Interest
For CPF members who are aged 55 and above, an additional 1% interest per annum will be paid on the first $30,000 of their combined balances. This is paid over and above the current extra 1% interest that is earned on the first $60,000 of their combined balances. As a result, CPF members aged 55 and above will earn up to 6% interest per year on their retirement balances.
These additional extra interest received on the OA will go into the member’s RA to enhance his or her retirement savings. If the member has participated in the CPF LIFE scheme, the extra interest will still be earned on his or her combined balances, which includes the savings used for CPF LIFE.
Source:
CPF Interest Rates.
Hi LS,
Here is the link to the guest blog:
Withdraw CPF MSTU and interest at 55?
Reader says...
I am thinking of shifting $66k from my OA to my SA to top it up to FRS to make the money grow faster. But that would mean also that I can’t do the Top Up to SA ($7k each year) into my SA anymore...
AK says...
If you do not have spare cash to top up the SA, then, OA to SA transfer is a good idea. You won't get any income tax relief in such a case.
If you have spare cash and income tax relief is important to you, then, you might want to do cash top up to your SA instead of OA to SA transfer.
Either way, you will be growing your retirement funds. :)
Worried about the projected 3% yearly increase in Minimum Sum (Full Retirement Sum)?
Not me.
https://singaporeanstocksinvestor.blogspot.com/2016/08/1m-in-cpf-by-age-65-what-about-12m.html
Reader says...
Hello AK, just checking if you still find topping $7k cash per year (when young)into SA a good investment profile?
Or is there other better ways for $7k per year?
Have been doing that for the past 2 years and wondering if I should continue this year:)
AK says...
I only did what I thought made sense for me. You have to decide if it makes sense for you 😉
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