Me Time!

[Sun_2010]

starlight1968sg\" post_id=\"1962335\" time=\"1580969393\" user_id=\"14025:

doodbug\" post_id=\"1962333\" time=\"1580969212\" user_id=\"13281:

Paiseh! I got my order wrong. Yes I meant to ask, can I switch from the ERS to the FRS lol Like let's say 60 years old suddenly need money....hee.

I think one can decide either Basic or Standard Plan at age 65 or later. But probably at age 55, one has to decide BRS, FRS or ERS. Thereafter probably cant change bec that amount will be set aside as premiums for CPF Life.
Again, pls confirm...

That is correct.
I think attending the talks that CPF conducts regularly is very useful.

What I have gotten from the talks -
Once we turn 55, a 4th CPF account - Retirement Account (RA) is created ( ie in addition to OA, SA and MA). By default if you have enough in your SA+OA - CPF will allocate the FRS amount into it.

BRS, FRs and ERS are just slabs. You can have any amount in between those. This is something that I did not know. I have confirmed this with the CPF , and also implemented for DH.

For eg , For year 2020, BRS is 90.5k, FRS is 181k and ERS is 271.5k.
If you want to put more into your RA, you can do a cash top up or transfer from SA ( first) and OA to any amount higher - say 19 K to make your RA have 200K. The CPF life calculator allows you to check the CPF Life pay outs based on whatever amount is in RA as per plans opted for.

Also you can top up RA at any time during the next 10 years. Like maybe right now you want to keep your excess CPF in OA as you are expectin some expenditure. After 2-3 years , you can still decide to top up your RA . So in 2023 you can top up 20K to your RA and make it 220K . Interest for that 20K will be calculated from the date you you topup.

The only catch is whatever is in your RA, you cannot take it out till 65.
The interest rate in RA is 5% ( a small portion will get 6%) . That is a solid low risk investment . As long as one has sufficient emergency funds , imo, that is the great place to park your money.

[starlight1968sg]

sun_2010

You must be from CPF

One more thing: to form the premium of CPF Life, money in SA will be \"empited\" first then OA.
This brings another \"concern\" called SA shielding which interested pple can google to find out more...

I hv to say the compounding interest of CPF over the years is very attractive, noting am risk adverse.

Oops, we shld hv moved the earlier posts to CPF Life...

[doodbug]

Thank you very much, Sun_2010. The following info you posted is extremely helpful:

- BRS, FRs and ERS are just slabs. You can have any amount in between those.
- By default if you have enough in your SA+OA - CPF will allocate the FRS amount into it.
- The only catch is whatever is in your RA, you cannot take it out till 65.

I have a few more questions:
- At 55, CPF will allocate the FRS using your SA and OA. After the allocation, can we transfer remaining OA to SA?
- Assuming our RA after 55 is more than the FRS, can we withdraw the OA and SA at any time?

[doodbug]

Also, for the following statement:


"The only catch is whatever is in your RA, you cannot take it out till 65."

At 65, RA cannot be withdrawn, but it is disbursed using monthly payouts - is this correct?

[Sun_2010]

doodbug\" post_id=\"1962383\" time=\"1580978240\" user_id=\"13281:

Thank you very much, Sun_2010. The following info you posted is extremely helpful:
- BRS, FRs and ERS are just slabs. You can have any amount in between those.
- By default if you have enough in your SA+OA - CPF will allocate the FRS amount into it.
- The only catch is whatever is in your RA, you cannot take it out till 65.

I have a few more questions:
- At 55, CPF will allocate the FRS using your SA and OA. After the allocation, can we transfer remaining OA to SA?
- Assuming our RA after 55 is more than the FRS, can we withdraw the OA and SA at any time?

Disclaimer- no, I am not from cpf or even remotely related to it or any other financial services. So cross check with CPF before taking any \"decisions\". DH is turning senior citizen , so just figuring it out with him.

1. No you cannot transfer from OA/top up cash to SA after you turn 55. Only the portion from your salary will go into SA after 55.
However before you turn 55 you can transfer from OA or topup cash to SA up till the declared FRS amount for that year. Like this year the max in SA can be 181k s at the end of this year , so you can top up till that amount only.
From the age 50-55, you get 1% more interest in SA (ie 5%), so if you hit the FRS amount of that year by the time one is 50, by 55 , even if there is no further deposit in cpf, one will have more than the FRS from the added interest .
2. Assuming RA is more than FRS , i suppose you mean SA+OA is more than FRS at 55, then yes the FRS amt will be transferred to your RA - first take from SA then from OA .
In case your SA is more than FRS, the excess will remain in your SA and OA will remain un touched. You can with draw any time, any number of times , however , what you withdraw will come from your SA first .( CPF clever hor). In that it is like a bank account, but with better interest rates
In case your SA is doesnt cover FRS, the it will be wiped out first and the rest will be taken from OA. Any excess will remain in your OA.

Note- I dont know much about BRS, but there is mortgage pledging involved I think. Also for FRS, if one is servicing a loan from the OA, then you can discuss with CPF about how much you want to leave in your OA

[lee_yl]

For the whole of last week, due to the coronavirus situation, I avoided going out. Nothing to do during free time so I started baking.


I made 2 loaves of Banana Bread, Ondeh Ondeh, Teochew Orh Nee, steamed pumpkin kueh, baked egg tarts, Gula Melaka Huat Kueh (which unfortunately didn’t rise), made a pizza from scratch, Banana crumb muffins....

Most of the above were 1st attempts. Never in my life bake/steam so much pastries within such a short period. Lol. Very unhealthy too, don’t know how much sugar, coconut milk and blocks of butter I have consumed for the whole of last week!


https://postimg.cc/18h6wnVR

https://postimg.cc/WDSJB5Wt

https://postimg.cc/sQNGXvRr

https://postimg.cc/cgH80f2h

https://postimg.cc/gXsr7sD4

https://postimg.cc/rRR0tM8t

https://postimg.cc/5jXFrqwN

[phtthp]

Is very very good, lee_yl !


At least, u have turned your anxiety into keep working at something meaningful non stop, to keep yourself occupied, instead of let fearful virus thoughts bound u

[starlight1968sg]

I must be mad today

At ntuc in the morning and giant in the afternoon

[MrsKiasu]

leeyl, your bakes :drool: :drool:

star, that is not considered mad..I usually go ntuc then walk one round at cs and recently don donki

[MrsKiasu]

lee_yl\" post_id=\"1963645\" time=\"1581833818\" user_id=\"17023:

For the whole of last week, due to the coronavirus situation, I avoided going out. Nothing to do during free time so I started baking.

I made 2 loaves of Banana Bread, Ondeh Ondeh, Teochew Orh Nee, steamed pumpkin kueh, baked egg tarts, Gula Melaka Huat Kueh (which unfortunately didn’t rise), made a pizza from scratch, Banana crumb muffins....

Most of the above were 1st attempts. Never in my life bake/steam so much pastries within such a short period. Lol. Very unhealthy too, don’t know how much sugar, coconut milk and blocks of butter I have consumed for the whole of last week!


https://postimg.cc/18h6wnVR

https://postimg.cc/WDSJB5Wt

https://postimg.cc/sQNGXvRr

https://postimg.cc/cgH80f2h

https://postimg.cc/gXsr7sD4

https://postimg.cc/rRR0tM8t

https://postimg.cc/5jXFrqwN

I like ondeh so much but only I eat in the family so no need waste effort lor.. it looks so nice.