today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

[PNGMK]

In short the RA bonuses and interest are ring fenced from the ERS limit.

This is a 'special year' if you were at the old ERS, from next year the RSTU will be back to $10,500 or so I expect. This is also a special year in which you could, if you have the wherewithal, boost your total CPF by a full BRS amount in cash (rather than an OA > RA transfer).

If you're really keen to boost RA, you could theoretically (before mid Jan) pay in a full VC as well - that hits the SA which means it would go into your RA in mid Jan.

[NYY1]

In short the RA bonuses and interest are ring fenced from the ERS limit.

This is a 'special year' if you were at the old ERS, from next year the RSTU will be back to $10,500 or so I expect.

Sorry, for the part in bold you mean if/when you top up/transfer the maximum amount they allow, you'll be > $426k in the RA?

Just for planning purposes, the ERS for 2026 and 2027 is $440,800 (+$14,800) and $456,400 (+$15,600). The yearly delta is now two times the change in the FRS (instead of 1.5x).

[PNGMK]

Yes, I am already above $426k in my RA. ($483,522).

Thanks for the note on the ERS annual delta.

[PNGMK]

A final note on this being a special year. If I had decided to boost my CPF by cash for a full $117,000 I'd be able to hit the 1MM by end of 2025 (a year earlier) - this large potential for a cash injection into CPF is something for others with more liquidity to consider. Keep in mind policy risk.

[NYY1]

I guess it's a good outcome / start to the year.

Also, I don't think payroll or VC above age 55 will flow to the RA (like it does for the SA < age 55) if you are already at the FRS. I think the same is true for the sweep from the SA to the RA (when the SA is closed).

Check the PDF on the following page.
https://www.cpf.gov.sg/service/article/ ... s-for-2025

[PNGMK]

Thanks for the heads up.

I just did a test VC. Right now 40% still goes into SA. After SA disappears I'm not sure where it does. Probably OA if you are at ERS.

[PNGMK]

Just a reminder to top up your CPF and SRS asap as we are down to 4 weeks approx before the tax window closes for this year.

[PNGMK]

So CPF interest is in today. ~$30,429.

Total account balance is $883,686.

If I add in my SRS value $239,144 (I can withdraw from Oct and the policies pay out this month) I have a total of $1.22MM available as retirement funds via various withdrawal methods (OA withdrawals and 10 year window for SRS - I'll probably start that in Oct 2026 with a small amount to get it set up - I still earn enough to hit a 7% tax rate so I don't want to pay a lot of tax yet). To my mind I made 1M61 (target was 1M60 but losing my corp job didn't help).... I didn't previously include SRS as it was tied up in various policies but is clearing this month.

Lessons learnt: IF you have the wherewithal I would always do VC and RA top ups with cash every year. Compounding works. I should have been far more consistent and disciplined in that but to be fair until a decade ago CPF topups were a PITA to make (you had to go down to their office, fill in a form, pay cash or cheque etc). SRS is still painful unless you have a linked bank account.

As my OA balance is now $294,056 and only earns 2.5% I considering to withdraw $200,000 and use it for a bond fund that is paying 5% ----

I also did an immediate RSTU top top up to my RA from OA (ignorning the tax benefit for doing it in cash). I also did a full $15,000 SRS top up on Dec 29 in order to minimize YA2025 income taxes - the "magic" number for that IMO is hitting an income > $80,000 that triggers a 7% income tax bracket which is worth trying to reduce and effectively gives you a 7% return on your SRS deposit for the following tax year.

Growth chart below:

Adding in SRS:

Balances in CPF:

[malcontent]

@PNGMK the big question for you is whether let your RA “purchase” the CPF LIFE annuity, or renounce before 70 and cash out. For tax reasons, a cross-border family like yourself will probably be less penalized with the latter.

[PNGMK]

I've been thinking about it and literally just checked payment calculations on CPF.

In some ways I'd be ok taking CPF life. It's in an appreciating currency and backed by the Singapore garmen.

The flat payment scheme CPF Life Standard is going to pay $3120 approx at 65. I'd wait until probably 66/67 to get max interest at 4% in and then take it. Remember you can always re invest the payouts.

[PNGMK]

What I can't work out is whether I should withdraw 200k from OA for a better return. If the govt increases ERS again and allowed OA to RA transfer again I'd do that.

[malcontent]

By “flat payment” I assume you mean the standard plan. I would only take the standard plan if my health was failing and I didn’t have any beneficiaries.

The Basic plan actually gives you the highest odds of generating the highest IRR for you and your loved ones. Standard and Escalating generate 0% IRR until you’ve exhausted the bequest and start dipping into the collective “pooled” money. And even then, the break-even versus basic doesn’t occur until late 80’s to mid 90’s depending on your gender and scheme chosen.

So, if you don’t cash out before 70 and CPF LIFE becomes unavoidable, I would definitely choose Basic if it is still available. If not, my second choice would be escalating. The IRR between standard and escalating are virtually identical, and honestly, if you are going to use an annuity… use it the way it was intended — as a means of income security.

I would not reinvest a dime, and instead use that income security to allow all of my other investments to chase higher returns, since the need for “safe money” has been mitigated.

If, on the other hand, you don’t need CPF LIFE for income security, it would definitely be better to opt out or renounce if it’s an option, IMO.

I’d be interested in what others have to say.

[malcontent]

What I can't work out is whether I should withdraw 200k from OA for a better return. If the govt increases ERS again and allowed OA to RA transfer again I'd do that.

I would take the S$200k and invest it elsewhere. Keep in mind, if you have significant home equity in SGD, that gives you a lot of currency exposure.

From 2020 to 2025 when my employer was contributing to my SRS, as soon as sufficient funds arrived I invested it all into S27 (S&P 500). Despite being in denominated in USD, it is up over 50%, even in SGD terms.

[PNGMK]

By “flat payment” I assume you mean the standard plan. I would only take the standard plan if my health was failing and I didn’t have any beneficiaries.

The Basic plan actually gives you the highest odds of generating the highest IRR for you and your loved ones. Standard and Escalating generate 0% IRR until you’ve exhausted the bequest and start dipping into the collective “pooled” money. And even then, the break-even versus basic doesn’t occur until late 80’s to mid 90’s depending on your gender and scheme chosen.

So, if you don’t cash out before 70 and CPF LIFE becomes unavoidable, I would definitely choose Basic if it is still available. If not, my second choice would be escalating. The IRR between standard and escalating are virtually identical, and honestly, if you are going to use an annuity… use it the way it was intended — as a means of income security.

I would not reinvest a dime, and instead use that income security to allow all of my other investments to chase higher returns, since the need for “safe money” has been mitigated.

If, on the other hand, you don’t need CPF LIFE for income security, it would definitely be better to opt out or renounce if it’s an option, IMO.

I’d be interested in what others have to say.

Full faith and guarantee of the Singapore govt is worth something tho