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

[NYY1]

The SA is going away (once age 55) while the RA will be able to hold 4x the BRS.

https://www.channelnewsasia.com/singapo ... pf-4128816

[PNGMK]

Good news With RA at such a high level the interest becomes significantly higher.

[NYY1]

Good news With RA at such a high level the interest becomes significantly higher.

I think it depends. For you, it is good (if you want to put more in the RA and the increase comes from the OA or outside). However, now the max you can have in RA (+ SA) is 4x the BRS.

Additionally, if the RA and MA are maxed out, this would push a greater proportion of any future contributions into the OA. For SEP, one could just do the RSTU or Medisave only top up. For payroll, there isn't a choice.

[malcontent]

The SA is going away (once age 55) while the RA will be able to hold 4x the BRS.

https://www.channelnewsasia.com/singapo ... pf-4128816

Someone just told me about that. I haven’t fully digested it, but I guess SA shielding is gone.

[NYY1]

The SA is going away (once age 55) while the RA will be able to hold 4x the BRS.

https://www.channelnewsasia.com/singapo ... pf-4128816

Someone just told me about that. I haven’t fully digested it, but I guess SA shielding is gone.

I believe so. The think the other impact is in my reply above.

[malcontent]

Good news With RA at such a high level the interest becomes significantly higher.

Yes, the main reason people wanted to shield thier SA is to have even more than ERS for retirement. This helps level the playing field for those who did not shield, and effectively closes a loophole that has been somewhat contentious. The increase in ERS from 3 to 4 x BRS helps. The example given shows one can now reach over $3k monthly in retirement at ERS.

At the same time, it would appear to wring out some benefits for CPFB in terms of less interest they have to pay. I assume they will use that to benefit members in other ways. I’m not sure why they don’t just come out and say that. They are also saving interest payments to non-SC/PR account holders that was previously announced.

[NYY1]

You also need to consider how the RA is funded. Not all of the funding can be reversed. Previously, you could split money between the SA + RA and then decide at 65 how much CPF Life you wanted. The SA could also be used for something else if needed.

[malcontent]

You also need to consider how the RA is funded. Not all of the funding can be reversed. Previously, you could split money between the SA + RA and then decide at 65 how much CPF Life you wanted. The SA could also be used for something else if needed.

All good points that need to be pondered. I think you can still wait until 65 (or even 70) to decide how large of a CPF Life annuity you want (usually from the FRS minimum up to the ERS maximum), but like you alluded, you now suffer lower interest by not deciding at 55. In the current rate environment, it’s probably best to pull it out of OA and do an RSTU later on. I think that’d be the plan for my wife’s CPF at this stage.

[NYY1]

You also need to consider how the RA is funded. Not all of the funding can be reversed. Previously, you could split money between the SA + RA and then decide at 65 how much CPF Life you wanted. The SA could also be used for something else if needed.

All good points that need to be pondered. I think you can still wait until 65 (or even 70) to decide how large of a CPF Life annuity you want (usually from the FRS minimum up to the ERS maximum), but like you alluded, you now suffer lower interest by not deciding at 55. In the current rate environment, it’s probably best to pull it out of OA and do an RSTU later on. I think that’d be the plan for my wife’s CPF at this stage.

Yes, you should be able to load it up at the end if that's what you want (ERS CPF Life). However, I think it depends on a few things at 65, primary expected longevity and the rate/inflation environment. The latter also applies at 55; it's not clear whether park in SA or have it swept to OA/withdraw/do something else is better.

[PNGMK]

We are past the half way mark for the year. By now if you are retired you should have topped up your RA under the RSTU ($10,500) for a heft 4.08% and you should be well on your way to either saving or topping up your accounts to the maximum of $37,400 if employed - if you have used MA I suggest topping that up seperately for the best tax deduction. Your SRS contributions are due at the end of the year as well.

If you're an SEP as I am now, continue to keep track of your income and expenses in a spreadsheet to make it easier to calculate for the IRAS next March.

[NYY1]

If you are young and below the cap, there are probably better things to do than top up CPF. If you are already at the cap, there's not much you can do.

For older ages, I think it depends on how much CPF Life one wants (especially with the upcoming changes to the SA).

That being said, any savings plan (consistent contributions) is a good thing to have and CPF has some other benefits.

[PNGMK]

@NYY1 - maybe you know the answer but several PR friends and I have been trying to puzzle this out.

Today my RA holds 3 x BRS PLUS additional savings from past year interests and RSTU for a total of $360700 which about 50k above 3 x BRS (3 x BRS = $102,900 x 3 = $308700)

In my RA so I have accumulated ~$50,000 in interest and bonuses. I estimate with 2024 interest the total in my RA on Dec 31 2024 to be ~$375,000 which is 66k above the 2024 ERS.

When the ERS goes to 4 times the 2025 BRS ($106,500) it will be $426,800 - now on Jan 1 will the govt take from my SA and OA the difference between $375,000 and $426,800 (which is only $52,000 or will they allow me to move from OA and SA a total equal to 1 x 2024 BRS ($106,800) for a total RA of approx ~$480,000?


I suspect they will only allow me to top up from OA to 4 x BRS (I only have about 10k in my SA). This means I am sort of reset to zero for additional gains into my RA.

I would prefer if they allow us to top up to 1 x BRS but I suspect they won't.

[PNGMK]

I'm just going to put this here for those looking at withdrawals. I had not seen the 65 yo rule prior to this;

MINISTRY OF FINANCE
CPF Withdrawal Rules Unchanged
The CPF withdrawal rules remain unchanged.
1. Members can withdraw up to $5,000 unconditionally from their Ordinary Account
(OA)/ Special Account (SA) savings from age 55, even if their Retirement Account
(RA) savings are less than their cohort BRS; or
2. Members can withdraw their OA/SA savings above their FRS, and/or RA savings above
their BRS (if they own a property that can last them up to age 95) from age 55; and
3. Members turning age 65 from 2023 onwards can withdraw up to 20% of their RA
savings as at age 65, in a lump sum.

Source: https://www.mof.gov.sg/docs/librariespr ... nnexe3.pdf

[NYY1]

I don't recall the 20% of RA at 65 either. Based on some searches, it may have been agreed on a few years back. However, per above it only kicked in last year, so maybe many of the pages discussing withdrawals did not list it until recently.

[malcontent]

I don’t mean to poo poo CPF, but a few things have me disillusioned at the moment…

My wife’s CPF has hit FRS and BHS, which makes interest rates unattractive on any top ups.

SA shielding is now gone; that has dampened my spirits about wringing a bit more value out of CPF post-55.

With interest rates today, you can actually find better deals than CPF LIFE in the private annuity market.

My wife and I are also covered by social security, and CPF LIFE is relatively small (and U.S. tax unfriendly) by comparison.

I’m not saying it’s a bad deal… if CPF is your main retirement income vehicle, you absolutely need to make the most of it.