@tanyongboo, Thank you for your question! Yes, if you reach your cohort FRS ($213,000 in 2025) in RA at age 55, you can withdraw the balance amount from your OA. You may also be keen to read this article here, on a prudent retirement guide amid the CPF changes in 2024: providend.com/heres-a-prudent-retirement-guide-amid-the-latest-cpf-changes/ Have a good day ahead.
Hi, may I ask a question: if upon 65 years old, my RA has more than Enhanced Retirement Sum (ERS), namely more than 4 times of the Basic Retirement Sum (due to accumulation of interests since 55 years old), what happens to the balance money in my RA after opt to the ERS? namely after setting aside money of 4 times of basic retirement sum for the CPF LIFE with ERS, what can i do for the rest of money in the RA?
Hi @RobertS-h7r, thank you for your question. All funds (including both capital & interest earned) inside your Retirement Account are actually designated to be the annuity premium for CPF LIFE. For example, assuming a person turned 55 in 2024 and this year's ERS is $308,700. It is estimated that if his RA in 2024 is $308,700, then he will receive a monthly payout amount of between $2,280 - $2,450 at age 65. The monthly payout of $2,280 - $2,450 at 65 is after already factoring in the interest he will earn in his Retirement Account from between 55 to 65 years old. Hence, you will not be able to withdraw the interest in your RA. Hope this clarifies, thank you and cheers! - Alvin, Client Adviser
@@ProvidendSG Thanks so much for your prompt reply, appreciate it! I now understand that "ALL" funds inside RA is meant for Annuity Premium for CPF LIFE. However, how about such scenario: at 55 (say next year with the new rules for CPF LIFE), I top up my RA amount to ERS (4 times) and let it sit in the RA to accumulate "interests" over the 10 years until 65. BUT then at 65, I finally decided to opt for FULL Retirement Sum (FRS) instead of ERS, then there will be a lot of surplus of money balance in the RA after set aside the FRS, then what will happen to the large amount of balance money in the RA after setting aside the FRS? (OR maybe I have no choice but will be forced to top for ERS since there is sufficient money in RA to cater for ERS? CPF will not allow me to opt for FRS anymore in such scenario?)
Hi @RobertS-h7r, thank you for your follow-up question. The 3 different Retirement Sums (BRS, FRS & ERS) mainly reflect the savings that you have in your Retirement Account, and it gives you an indication of how much CPF LIFE pay-out you will receive at 65 years old. Going back to the concept that all funds inside Retirement Account is meant for CFP LIFE annuity premium, CPF does not provide option for you to choose which Retirement Sum tier to be on after you’ve topped up to the maximum ERS. However, there are provisions by CPF Board to allow you to withdraw from your Retirement Account at two different milestones. The first one is from age 55, you can withdraw an unconditional $5,000 and pledge your property to take out maximum the Basic Retirement Sum amount. Do note however that you will not be able to withdraw the interest, top-ups you have done to your Retirement Account and any Government Grants. The second one is also from age 65, you can withdraw 20% of your Retirement Account. However, you will not be able to withdraw any top-ups you have done to your Retirement Account, any Government Grants and the unconditional $5,000 that you can withdraw from age 55. You will realise that in both situation of pledging your property and the 20% withdrawal, you are not able to withdraw amounts you have topped up or transferred to your Retirement Account. Hence, do be very careful in your calculations and consider if having the liquidity from CPF is more important or having a stable pay-out from CPF LIFE for your retirement is more important. You can read up more here on the withdrawal schemes: www.cpf.gov.sg/service/article/how-is-the-withdrawable-amount-computed Hope the above helps, thank you. - Alvin, Client Adviser
Hi , can please help me with my cpf ? My PR approved on 10March 2022 When is my 1st year ,2nd year and 3rd year? I lost my PR Card and got the new replacement .the new PR card Date of issue is not the same as the first one that i lost .my new PR card issued on 31Jan.2023 My employer followed the contribution based on my new PR card Dated January 31 2023 . thank you very much for your information . Its a great awareness for future retirement.
Hi Diane, thank you for your question. From this CPF website (www.cpf.gov.sg/member/faq/growing-your-savings/saving-as-an-employee/determine-year-of-spr-status-for-purpose-of-cpf), it appears that the year of SPR status depends on your date of obtaining SPR status, which is indicated on your entry permit. It's not mentioned that change in issue date of NRIC will affect the status. For the most accurate answer, please do contact CPF Board Or Ministry of Manpower directly for clarification. Thank you and I wish you the best! - Alvin, Client Adviser
If my FRA can reach the amount of $213000 , so can I draw out the balance amount in my OA if I reach 55 year old thanks.
@tanyongboo, Thank you for your question!
Yes, if you reach your cohort FRS ($213,000 in 2025) in RA at age 55, you can withdraw the balance amount from your OA.
You may also be keen to read this article here, on a prudent retirement guide amid the CPF changes in 2024: providend.com/heres-a-prudent-retirement-guide-amid-the-latest-cpf-changes/
Have a good day ahead.
Hi, may I ask a question: if upon 65 years old, my RA has more than Enhanced Retirement Sum (ERS), namely more than 4 times of the Basic Retirement Sum (due to accumulation of interests since 55 years old), what happens to the balance money in my RA after opt to the ERS? namely after setting aside money of 4 times of basic retirement sum for the CPF LIFE with ERS, what can i do for the rest of money in the RA?
Hi @RobertS-h7r, thank you for your question. All funds (including both capital & interest earned) inside your Retirement Account are actually designated to be the annuity premium for CPF LIFE. For example, assuming a person turned 55 in 2024 and this year's ERS is $308,700. It is estimated that if his RA in 2024 is $308,700, then he will receive a monthly payout amount of between $2,280 - $2,450 at age 65. The monthly payout of $2,280 - $2,450 at 65 is after already factoring in the interest he will earn in his Retirement Account from between 55 to 65 years old. Hence, you will not be able to withdraw the interest in your RA. Hope this clarifies, thank you and cheers! - Alvin, Client Adviser
@@ProvidendSG Thanks so much for your prompt reply, appreciate it! I now understand that "ALL" funds inside RA is meant for Annuity Premium for CPF LIFE. However, how about such scenario: at 55 (say next year with the new rules for CPF LIFE), I top up my RA amount to ERS (4 times) and let it sit in the RA to accumulate "interests" over the 10 years until 65. BUT then at 65, I finally decided to opt for FULL Retirement Sum (FRS) instead of ERS, then there will be a lot of surplus of money balance in the RA after set aside the FRS, then what will happen to the large amount of balance money in the RA after setting aside the FRS? (OR maybe I have no choice but will be forced to top for ERS since there is sufficient money in RA to cater for ERS? CPF will not allow me to opt for FRS anymore in such scenario?)
Hi @RobertS-h7r, thank you for your follow-up question.
The 3 different Retirement Sums (BRS, FRS & ERS) mainly reflect the savings that you have in your Retirement Account, and it gives you an indication of how much CPF LIFE pay-out you will receive at 65 years old. Going back to the concept that all funds inside Retirement Account is meant for CFP LIFE annuity premium, CPF does not provide option for you to choose which Retirement Sum tier to be on after you’ve topped up to the maximum ERS.
However, there are provisions by CPF Board to allow you to withdraw from your Retirement Account at two different milestones.
The first one is from age 55, you can withdraw an unconditional $5,000 and pledge your property to take out maximum the Basic Retirement Sum amount. Do note however that you will not be able to withdraw the interest, top-ups you have done to your Retirement Account and any Government Grants.
The second one is also from age 65, you can withdraw 20% of your Retirement Account. However, you will not be able to withdraw any top-ups you have done to your Retirement Account, any Government Grants and the unconditional $5,000 that you can withdraw from age 55.
You will realise that in both situation of pledging your property and the 20% withdrawal, you are not able to withdraw amounts you have topped up or transferred to your Retirement Account. Hence, do be very careful in your calculations and consider if having the liquidity from CPF is more important or having a stable pay-out from CPF LIFE for your retirement is more important.
You can read up more here on the withdrawal schemes: www.cpf.gov.sg/service/article/how-is-the-withdrawable-amount-computed
Hope the above helps, thank you. - Alvin, Client Adviser
@@ProvidendSG Hi Alvin, thanks so much for your elaborated reply, appreciate it so much!
@@RobertS-h7r You are most welcome, and have a restful weekend ahead! -Alvin
Hi , can please help me with my cpf ?
My PR approved on 10March 2022
When is my 1st year ,2nd year and 3rd year? I lost my PR Card and got the new replacement .the new PR card Date of issue is not the same as the first one that i lost .my new PR card issued on 31Jan.2023
My employer followed the contribution based on my new PR card Dated January 31 2023 . thank you very much for your information . Its a great awareness for future retirement.
Hi Diane, thank you for your question.
From this CPF website (www.cpf.gov.sg/member/faq/growing-your-savings/saving-as-an-employee/determine-year-of-spr-status-for-purpose-of-cpf), it appears that the year of SPR status depends on your date of obtaining SPR status, which is indicated on your entry permit. It's not mentioned that change in issue date of NRIC will affect the status.
For the most accurate answer, please do contact CPF Board Or Ministry of Manpower directly for clarification. Thank you and I wish you the best! - Alvin, Client Adviser