PR without CPF

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bruinbear
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Post by bruinbear » Sat, 12 Jul 2008 5:23 pm

To have 50% of income suddenly locked up is not funny.

But mandatory CPF contributions does have some advantages. For instance, they can act as a tax shield. Of course the value of this tax shield depends on which tax bracket you are in. Given Singapore low income tax rates, this shield might not be worth that much.

hertfordshire_lad
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Post by hertfordshire_lad » Tue, 11 Nov 2008 11:07 pm

Thanks for all the info above - this is just the kind of thread I was looking for.

I'm also considering PR, but worried about the drop in disposable income. I'm young, single, a masters degree holder from a good uni and have 5 years work experience, but still find potential employers and recruitment agents are not interested as i'm not PR. So, I find that the main benefit of taking PR is employment flexibility.

However, I wondered whether there are any other considerations when deciding to apply? Are there any other obvious pros/cons?

thanks in advance.

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Post by Saint » Tue, 11 Nov 2008 11:27 pm

hertfordshire_lad wrote:Thanks for all the info above - this is just the kind of thread I was looking for.

I'm also considering PR, but worried about the drop in disposable income. I'm young, single, a masters degree holder from a good uni and have 5 years work experience, but still find potential employers and recruitment agents are not interested as i'm not PR. So, I find that the main benefit of taking PR is employment flexibility.

However, I wondered whether there are any other considerations when deciding to apply? Are there any other obvious pros/cons?

thanks in advance.
CPF contribution percentages in the first year are low and increase every year until full contribution. this is for both employer and employee. There is also a monthly income threshold which is only subject to contributions.

So in your first year of PR you will only pay 5% of a Max $4.5k per month income, so the most you will be deducted in 1st year is $225 per month.

subsequent year the contributions increase, 2nd year i think is 9%?

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sundaymorningstaple
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Post by sundaymorningstaple » Tue, 11 Nov 2008 11:39 pm

hertfordshire_lad wrote:Thanks for all the info above - this is just the kind of thread I was looking for.

I'm also considering PR, but worried about the drop in disposable income. I'm young, single, a masters degree holder from a good uni and have 5 years work experience, but still find potential employers and recruitment agents are not interested as i'm not PR. So, I find that the main benefit of taking PR is employment flexibility.

However, I wondered whether there are any other considerations when deciding to apply? Are there any other obvious pros/cons?

thanks in advance.
Here's the bummer......

You have to have a job initally (EP or S pass) in order to apply for PR unless you are applying on family ties (hard) or are coming in as a Landed Permanent Resident (LPR). This is an In-Principle Permanent Resident Approval. I think this will give you up to a year to find a job (PR will be given upon confirmation of an employment contract). see http://www.smcmc.com/immigration/immigration.html

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sundaymorningstaple
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Post by sundaymorningstaple » Tue, 11 Nov 2008 11:45 pm

As a PR you can take back all you CPF upon leaving Singapore, but you have to put it all back plus any interest that would have accrued had it be left there, if you plan on coming back anytime in the future to work.

It's actually a good things and has been for quite a number of years now as the interest rates (risk on risk) are about the best you will find. You can sock away around 15,600 a year and a minimum of 2.6% up to 4% and an additional 1% on the first 60K I believe.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

hertfordshire_lad
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Post by hertfordshire_lad » Wed, 12 Nov 2008 12:00 am

Fantastic - Thanks for the speedy replies.

Yes, I'm an EP holder here and have been for just under a year. Just to clarify, is the ceiling of 4.5k per month both for the employee and employer CPF contributions?

How about housing implications? Would a PR have any advantage over an EP holder?

Also do you know whether it is still possible to apply without having had an Income Tax assessment document?

Many thanks again.

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Saint
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Post by Saint » Wed, 12 Nov 2008 12:09 am

hertfordshire_lad wrote:wow thanks for the speedy replies.

Yes, I'm an EP holder here and have been for just under a year.

Just to clarify, is the ceiling of 4.5k per month both for the employee and employer CPF contributions?

Also do you know whether it is still possible to apply without having had an Income Tax assessment document?

many thanks again.
Yes the ceiling is for for employee and employer.

As for your last question, yes it is possible to apply without an income tax assessment form but I'm not really the the right person to answer this :cool:

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Post by revolta » Mon, 12 Jan 2009 9:56 am

sundaymorningstaple wrote:As a PR you can take back all you CPF upon leaving Singapore, but you have to put it all back plus any interest that would have accrued had it be left there, if you plan on coming back anytime in the future to work.

It's actually a good things and has been for quite a number of years now as the interest rates (risk on risk) are about the best you will find. You can sock away around 15,600 a year and a minimum of 2.6% up to 4% and an additional 1% on the first 60K I believe.
if drop PR can take all cpf including money in medisave? how long is the process for withdrawal of cpf?

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sundaymorningstaple
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Post by sundaymorningstaple » Sun, 22 Aug 2010 2:27 pm

10 business days wired to any bank you designate world wide.

Oh, please do not advertise in the forum. You surely know the rules by know.

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SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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