Staying in studio apartment, everyday mix around with those "55+", sure get old faster le.

at least I'm the youngest among the 55+

if I mix around those youngest, I'm the oldest.

i am totally lost here. say, a person does hasn't used cpf for his/her property purchase (ie. bought something without using cpf whether for lump sum or for instalment), does this change make a difference to that person?

i am totally lost here. say, a person does hasn't used cpf for his/her property purchase (ie. bought something without using cpf whether for lump sum or for instalment), does this change make a difference to that person?

Let's face what's happening now:

1. When get older, 50 onwards, cpf contribution rates reduced.

2. Upon 55, retirement account will be automatically open, and if not working, OA will be closed. $131k (OA+SA+inv)will be transfered into RA. Then wait till 62, can "slowly" withdraw some bit by bit, how much, not very sure.

2-1. If the sum of the 3 accounts is <$131K. And if one is paying property instalment by cpf = stop.

2-2. If the sum of the 3 accounts is >$131K, the "excess" can be withdrawn, but how much, not too sure yet.

3. Upon 55, if still working, OA maintains. If the sum of 3 accts <$131, every month's OA amount goes into RA, can't use cpf $ to pay property!

So, must plan properly when one reaches 55, making sure no cpf instalment for loan if MS not reached.

Correct me if I'm wrong, please.

Let's face what's happening now:

1. When get older, 50 onwards, cpf contribution rates reduced.

2. Upon 55, retirement account will be automatically open, and if not working, OA will be closed. $131k (OA+SA+inv)will be transfered into RA. Then wait till 62, can "slowly" withdraw some bit by bit, how much, not very sure.

2-1. If the sum of the 3 accounts is <$131K. And if one is paying property instalment by cpf = stop.

2-2. If the sum of the 3 accounts is >$131K, the "excess" can be withdrawn, but how much, not too sure yet.

3. Upon 55, if still working, OA maintains. If the sum of 3 accts <$131, every month's OA amount goes into RA, can't use cpf $ to pay property!

So, must plan properly when one reaches 55, making sure no cpf instalment for loan if MS not reached.

Correct me if I'm wrong, please.

super interesting. thanks for the perspective; that's a real eye opener for me

super interesting. thanks for the perspective; that's a real eye opener for me

when people said the MS can be pledged with their properties. But do they mean?

Using their 1st fully paid property to pledge?

when people said the MS can be pledged with their properties. But do they mean?

Using their 1st fully paid property to pledge?

1. With property pledging(automatic), memebers (before turning 55) needs to set aside 50% of MS($65k as at 2011), the excess in OA can be used to pay toward Public Residential or Private Residential properties. Illustration:

OA=40k

SA=50K

Inv=0k

total = 90K,

Excess = 90k-65k=25k.

Therefore, member is only allowed to use the 25k in OA (remember not 40K!) to pay towards properties.

2. Married couple(provided they nominate each other as beneficiaries for their Minimum Sum), when 2 of them reached 55, can apply to joint the "combined MSS" whereby the need to set aside only 1.5 time of the ms amount, instead of 2 times.

Bro, must still make your money work harder le. Though I know you are into investment like stock/property and insurance. Another 3 more years, you 50 liao, your OA got cut 6%

(4=employer/2=yourself). Then another 5 years later(OA got cut 9.5%)

Minumum cum might be raised until 2013 (150~160K). You got house loan..etc.

So by 55, you get 20% of your retirement accounts. draw down age set at 65. Got 10 years before your next Ang Pow. Then, they lock $40K for your CPF Life again. So ang pow get smaller. So you got 2 choices, own more house for rental income or buy HDB studio apartment and then your money is really par par ..hehe

Bro, sorry for the late reply, agreed. I worked hard to build the spreadsheet for the cpf rate/ceiling changes, see below, correct?

http://imageshack.us/photo/my-images/30/cpfcalculation132011to3.jpg/

http://imageshack.us/photo/my-images/192/cpfcalculationfrom19201.jpg/

Edited June 4, 201115 yr by bepgof

actually i am a layman to the cpf minimum sum thing ...why not thought of minimum sum as ..

a) a drawn down amount bit by bit until you exhaust all like a annuity ? Annuity pays you for LIFE. (if u live till 100) ? Does all singaporeans really want to take all amount (and control it) than let the govt manage via cpf methods ?

b) Whenever the govt raise cpf minimum sum , i will always try to match it via cash in bank or whatever liquidity method you prefer eg stocks or funds. Why not work hard to do it this way ?

a) Does all singaporeans really want to take all amount (and control it) than let the govt manage via cpf methods ?

Do we have any OPTIONS on this in first place? Why don't let members have opt in, opt out choices for this rules & hat rules? I'm exhausted and see "no hope" liao. It's a matter of time, this b o m b will sure ignite.

b) Whenever the govt raise cpf minimum sum , i will always try to match it via cash in bank or whatever liquidity method you prefer eg stocks or funds. Why not work hard to do it this way ?

Bro, still want to attend finance planning course? I think no need liao lah, only a true finance master like you can be so flexible, accomodating and adapt well to the rule changes.