As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

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Thursday, 18 June 2020

The folks at CPF Board answer your burning questions about CPF


Read? The folks at CPF Board answer your burning questions about CPF

Jen, 30 (no picture)

Q2: What’s the highest return rate for my CPF that I can get?

Answer: Currently, you earn interest rates of up to 3.5% per annum on your Ordinary Account (OA) monies, and up to 5% per annum on your Special and MediSave Account (SMA) monies. Retirement Account (RA) monies earn up to 5% per annum.

These interest rates include an extra 1% interest paid on the first $60,000 of your combined balances (with up to $20,000 from the OA).

If you’re aged 55 and above, you will also earn an additional 1% extra interest on the first $30,000 of your combined balances (with up to $20,000 from the OA). As a result, you will earn up to 6% interest per year on your retirement balances.

CW8888's computation of his yearly RA interests

=(RA balance at 1 Jan - $60,000)*4% + $30,000*5% + $30,000*6%



4 comments:

  1. The "simplified formula" to calculate the interests earned in our RA is :

    RA amount x 4% + $900.

    This formula works for RA amount of $60,000 and above.

    Try it. :-)

    ReplyDelete
    Replies
    1. $900 looks so little.

      Extra 1% on $30,000 @ 5% and another extra 1% on $30,000 @ 6%.

      5% and 6% risk free return looks juicy! LOL!

      Delete
  2. money remaining in Ordinary account will be earning interest at 2.5% no?

    ReplyDelete

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