<![CDATA[CPF review panel’s recommendations]]>

raysusan:
[quote]In case you’ve forgotten everything about what happens at 55…

You can take out everything in excess of Basic if you own your home. If you don’t even have a Basic, you can take out $5,000. Yup, nothing has changed.
What’s new: that Basic sum will increase by 3 per cent a year so that you wouldn’t be so suddenly surprised by an announcement when you’re 54.
so in 20 years time the min will be 60% more from now? :scared:[/quote]It's actually more than 60% as the basic sum is compounded annually.
Probably closer to 80% of today's value in 20 years time :evil:
(But why think so far... 20 years is 4 elections away, a lot can change in 4 elections :rotflmao: )

]]>https://forum.kiasuparents.com/topic/82019/cpf-review-panel-s-recommendationsRSS for NodeSun, 19 Jul 2026 21:06:55 GMTFri, 06 Feb 2015 02:28:03 GMT60<![CDATA[Reply to CPF review panel’s recommendations on Fri, 06 Feb 2015 01:38:40 GMT]]>[quote]In case you’ve forgotten everything about what happens at 55…

You can take out everything in excess of Basic if you own your home. If you don’t even have a Basic, you can take out $5,000. Yup, nothing has changed.
What’s new: that Basic sum will increase by 3 per cent a year so that you wouldn’t be so suddenly surprised by an announcement when you’re 54.[/quote]so in 20 years time the min will be 60% more from now? :scared:

]]>https://forum.kiasuparents.com/post/1461387https://forum.kiasuparents.com/post/1461387Fri, 06 Feb 2015 01:38:40 GMT<![CDATA[Reply to CPF review panel’s recommendations on Thu, 05 Feb 2015 07:53:26 GMT]]>

Sun_2010:
And why no middle ground? (Or is there?)

Say I am turning 55 in 2016 and My OA+SA is 120K, it appears that i can go for Basic only. If i do not want to withdraw the excess(!), why not let me put in all the 120K so that i can get a higher payout that is prorated between Basic and Full
This is a very good question! Will they prorate or not? LOL! Call CPF and ask 🙂

In any case, CPF will first advise you to defer your payout start age (formerly known as draw down age), up to age 70, for permanently higher monthly payouts. :evil: Pls continue working until you hit the Full Retirement Sum (formerly called Min Sum) required...so that you don't have to worry about the excess sum inside your account... :rotflmao: :rotflmao:

After all, didn't the Govt say they are committed to raising the CPF contribution rates for older workers and equalising the contribution rates for those aged above 50 to 55, to the rates for those aged 50 and below. This will also boost CPF savings and retirement payouts. 😓

Said CPF: \"Members can choose to exercise this (deferred payout) option if they do not need the payouts from their Payout Eligibility Age (e.g. if they are still working or have other sources of income), so that they can enjoy higher payouts in the future.\"

Another key recommendation is:

Some members may wish to receive a CPF payout which is higher than the Basic Payout. To cater to these members, the Panel recommends providing the option for members to commit higher amounts to CPF LIFE, up to an “Enhanced Retirement Sum”, set at three times the Basic Retirement Sum!!! 🦆

]]>https://forum.kiasuparents.com/post/1461113https://forum.kiasuparents.com/post/1461113Thu, 05 Feb 2015 07:53:26 GMT<![CDATA[Reply to CPF review panel’s recommendations on Thu, 05 Feb 2015 07:18:42 GMT]]>In a nutshell,

http://i61.tinypic.com/ojk1l3.jpg\">
(ST, 5 Feb, Pg A9)

]]>https://forum.kiasuparents.com/post/1461081https://forum.kiasuparents.com/post/1461081Thu, 05 Feb 2015 07:18:42 GMT<![CDATA[Reply to CPF review panel’s recommendations on Thu, 05 Feb 2015 07:15:40 GMT]]>

starlight1968sg:
zbear:

I am not confused by Bertha but confused by all the recommendations from the Panel.


Can someone clarify this - if Basic Sum is to be increased by 3% a year, does this mean the next jump will be 3% of S$161k (ie, $4830)?

So subsequently, every year's 3% increase is compounded?

Am I rite to say this?

Zbear
I think during 2017 to 2020, the 3% hike will be based on the last year's amt.


That is correct, per Recommendation #7:

\"From 2017 to 2020, each cohort of members turning 55 in a calendar year should have its Basic Retirement Sum increased by 3% from the cohort in the preceding year.\"

]]>https://forum.kiasuparents.com/post/1461079https://forum.kiasuparents.com/post/1461079Thu, 05 Feb 2015 07:15:40 GMT<![CDATA[Reply to CPF review panel’s recommendations on Thu, 05 Feb 2015 07:14:45 GMT]]>

rivereast:
no need to worry about it as it will change and change again. start reading about it when you are 54 yo.

Yes, wil keep changing...Wait for own cohort.

]]>https://forum.kiasuparents.com/post/1461077https://forum.kiasuparents.com/post/1461077Thu, 05 Feb 2015 07:14:45 GMT<![CDATA[Reply to CPF review panel’s recommendations on Thu, 05 Feb 2015 07:14:02 GMT]]>

Sun_2010:
zbear:

I am not confused by Bertha but confused by all the recommendations from the Panel.


Can someone clarify this - if Basic Sum is to be increased by 3% a year, does this mean the next jump will be 3% of S$161k (ie, $4830)?

So subsequently, every year's 3% increase is compounded?

Am I rite to say this?



I think so. In short it is to cater to the 3% inflation per year.
I created a sheet, am I correct?
My doubt is will the 3% increase be reflected in the payout too ( numbers in blue)?

The numbers in purple is what the min sums would be if the new rules continue for the next 10 or 15 years.

http://i61.tinypic.com/1enx3p.png\">


RE: Qn above in blue. My understanding is NO, based on answer found inconspicuously in Footnote 16(a).

\"Monthly payouts for life from age 65 are estimates based on the CPF LIFE Standard Plan parameters today.

Payouts do not increase proportionately with the retirement sums required because of the greater impact of Extra Interest on lower balances.

The Panel notes that the Extra Interest helps lower balance members grow their savings faster, and provides a higher payout per dollar set aside for lower balance members.\"

http://i62.tinypic.com/2q30kr8.jpg\">

]]>https://forum.kiasuparents.com/post/1461076https://forum.kiasuparents.com/post/1461076Thu, 05 Feb 2015 07:14:02 GMT<![CDATA[Reply to CPF review panel’s recommendations on Thu, 05 Feb 2015 06:56:10 GMT]]>And why no middle ground? (Or is there?)

Say I am turning 55 in 2016 and My OA+SA is 120K, it appears that i can go for Basic only. If i do not want to withdraw the excess(!), why not let me put in all the 120K so that i can get a higher payout that is prorated between Basic and Full

]]>https://forum.kiasuparents.com/post/1461054https://forum.kiasuparents.com/post/1461054Thu, 05 Feb 2015 06:56:10 GMT<![CDATA[Reply to CPF review panel’s recommendations on Thu, 05 Feb 2015 06:48:15 GMT]]>

zbear:
I am not confused by Bertha but confused by all the recommendations from the Panel.


Can someone clarify this - if Basic Sum is to be increased by 3% a year, does this mean the next jump will be 3% of S$161k (ie, $4830)?

So subsequently, every year's 3% increase is compounded?

Am I rite to say this?

I think so. In short it is to cater to the 3% inflation per year.
I created a sheet, am I correct?
My doubt is will the 3% increase be reflected in the payout too ( numbers in blue)?

The numbers in purple is what the min sums would be if the new rules continue for the next 10 or 15 years.

http://i61.tinypic.com/1enx3p.png\">

]]>https://forum.kiasuparents.com/post/1461037https://forum.kiasuparents.com/post/1461037Thu, 05 Feb 2015 06:48:15 GMT<![CDATA[Reply to CPF review panel’s recommendations on Thu, 05 Feb 2015 06:17:57 GMT]]>no need to worry about it as it will change and change again. start reading about it when you are 54 yo.

]]>https://forum.kiasuparents.com/post/1461023https://forum.kiasuparents.com/post/1461023Thu, 05 Feb 2015 06:17:57 GMT<![CDATA[Reply to CPF review panel’s recommendations on Thu, 05 Feb 2015 05:24:40 GMT]]>The recommendations made look like reframing the issue to be more acceptable to all, placate some, please others etc.

As said, the rich will not be impacted much. The poor remains similar - with the Basic Sum, the monthly payout is correspondingly reduced.

]]>https://forum.kiasuparents.com/post/1460997https://forum.kiasuparents.com/post/1460997Thu, 05 Feb 2015 05:24:40 GMT<![CDATA[Reply to CPF review panel’s recommendations on Thu, 05 Feb 2015 05:22:39 GMT]]>

zbear:
I am not confused by Bertha but confused by all the recommendations from the Panel.


Can someone clarify this - if Basic Sum is to be increased by 3% a year, does this mean the next jump will be 3% of S$161k (ie, $4830)?

So subsequently, every year's 3% increase is compounded?

Am I rite to say this?
Zbear
I think during 2017 to 2020, the 3% hike will be based on the last year's amt.

]]>https://forum.kiasuparents.com/post/1460996https://forum.kiasuparents.com/post/1460996Thu, 05 Feb 2015 05:22:39 GMT<![CDATA[Reply to CPF review panel’s recommendations on Thu, 05 Feb 2015 05:17:03 GMT]]>I am not confused by Bertha but confused by all the recommendations from the Panel.


Can someone clarify this - if Basic Sum is to be increased by 3% a year, does this mean the next jump will be 3% of S$161k (ie, $4830)?

So subsequently, every year’s 3% increase is compounded?

Am I rite to say this?

]]>https://forum.kiasuparents.com/post/1460994https://forum.kiasuparents.com/post/1460994Thu, 05 Feb 2015 05:17:03 GMT<![CDATA[Reply to CPF review panel’s recommendations on Thu, 05 Feb 2015 04:07:54 GMT]]>Bertha Henson's post only managed to confuse me more.

Here it is anyway...

https://sg.news.yahoo.com/cpf-minimum-s ... 44542.html

]]>https://forum.kiasuparents.com/post/1460966https://forum.kiasuparents.com/post/1460966Thu, 05 Feb 2015 04:07:54 GMT