Read? Return My CPF. PayNow!!!
Read? Turning 55 - and enjoying financial freedom (5)
Read? Some CPF Matters : Understanding It Better By Actually Going Through The ProcessTo Do It (2)
Thursday, 22 December 2016
CPF : What can I do for you?
CW : I want to confirm my understanding that I can withdraw all interests from CPF SA and OA.
CPF : You can withdraw interests from SA, OA and MA too.
CW: Pls help to check how much interests I can draw out without touching my SA and OA.
CPF: Wah! You have lots of interests to draw out. It is $XX,XXX. Do you want to draw out now?
CW: :-)
CW: No. Not now. I will withdraw next year on January.
CPF: No. You can't withdraw your interests on January. Your interests credited on January will become your principal. You have no more interests to withdraw. You have to be careful as you will be withdrawing your principal in CPF SA first and then principal in CPF OA. CPF SA is 4% interests. Be careful! You better withdraw now in December. Your interests for November has been credited! Do you want to withdraw now?
CW: No. I will withdraw next year in December.
CPF : You no need the money now?
CW: No need!
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Monday, 13 March 2017
CW : I want to withdraw interests from all my CPF accounts.
Uncle8888 also passed to her this notepad.
CW: Pls help to write down the number. Principal and interests. Thank you!
When CPF lady has written down all the numbers and handed over Uncle8888's note pad.
CW: No MA interest?
CPF: This year MA limit is raised to $52,000. Your MA has not reach the limit so you can't withdraw MA interest.
Uncle8888 has been topping up his CPF MA as self-employed and at the same time to qualify for Workfare. Finally, through his self-employed MA contributions and Workfare from Govt, he managed to reached CPF MA BHS @ $60K in 2020
$24K interests withdrawal from CPF as follows:
No interests withdrawal from CPF MA even he has reached MA BHS @ $60K for 2020!
Walan! This CPF system is really complicated! Even frontline CPF counter service staff answers are not exactly SAME after going through the process of ACTUALLY doing it!
WAKE UP CPF CEO!
Be precise on FAQ and re-train your counter service staff!
Posts
CW,
ReplyDeleteBut, but... You're not supposed to withdraw the interests (take money out from CPF)!!!
You're supposed to voluntarily contribute NEW money into CPF (put in most welcomed) ;)
Don't you love interest on interest on interest?
Let it compound and compound forever and ever!
Never take money out from CPF!!! (poke)
Got to agree with you. Its hilarious reading your previous post and the comments on CPF property refund thingy.
CPF themselves left hand say one thing, right hand say another.
One reader say got this loop hole, then another reader say tried but cannot leh???
So can refund or not?
I mean I not sure we consider ourselves financially literate, but really? Hands up who crystal clear?
What more about the common man riding in the Comfort Delgro bus?
I think I better join the Comfort Delgro bus riders and Hong Lim crowd - O$P$!
Not only would I join you in withdrawing the interests out, I would go one further by doing my best to withdraw as much principal out by opting for BRS ;)
Then big daddy can move the goal posts, raise the ceilings, change policies all they want! (I know they will)
I'm not screaming financial freedom when there's someone grabbing me by the bxlls ;)
LOL!
"I'm not screaming financial freedom when there's someone grabbing me by the bxlls ;)"
DeleteLOL!
Once reached BHS, interest will overflow to OA on 31 Dec for those over 55.
ReplyDeleteThat is correct if we are not withdrawing any money from CPF after 55.
DeleteStill can withdraw with patience. Interest overflow to OA. Then u withdraw the interest OA + SA in Dec😊
DeleteThe FAQ pages seem to be less technical & informative now. ðŸ˜
ReplyDeleteI can no longer find the sequence of withdrawal liao i.e. SA interest --> OA interest --> SA principal --> OA principal.
Now they simply say withdraw from SA first, followed by withdrawal from OA. 🙄
Oh, for those who want to withdraw as much as possible, all along CPF provides an exemption from Retirement Sum/Minimum Sum & CPF Life --- i.e. if you have your own lifelong pension or annuity.
However, in recent years CPF has raised the exemption bar --- your pension or annuity needs to pay out at least the same amount as CPF Life Standard ... a very high bar that no commercial annuity can even come close! LOL!
Less is better to understand? LoL!
DeleteHope CPF continues to allow withdrawal of interests only. I suspect if too many people doing this, they might disallow interests-only withdrawal & force withdrawal from SA and OA principal. 🤣
DeleteEven their explanation for why withdrawals start from SA first instead of OA sounds rather 勉强. LOL!
"Strictly speaking, the funds in the Special Account (SA) should attract a higher interest rate of 4% only if the monies are locked-in for the long term. This is analogous to market practice, where fixed deposits which are locked-in for the long term attract higher interest rates than savings deposits which are withdrawable at any time.
Accordingly, the funds in members’ SA that are actually withdrawable at any time should not be earning the higher interest rate of 4%. As a concession, we currently allow the withdrawable funds to remain in SA, but will require any withdrawals to be taken from SA first before Ordinary Account (OA)."
Boldings done for emphasis. 😂
Ha ha! Change withdrawal rule to minimum X% of CPF OA balance per withdrawal and very fast SA principal will be depleted. LOL!
DeleteThis comment has been removed by the author.
ReplyDeleteVery nice CW8888. Yearly passive income without touching the principals.
ReplyDeleteWe are building up our CPF funds to be our main source of income in retirement and similarly hoping to just withdraw the interests yearly.
We will have $3M in our combined CPF accounts by end this year including this year's interests. And as SMOL teased : "...You're not supposed to withdraw the interests.....", we will try not to withdraw the interest as long as possible.
If we dont contribute anymore to the CPF and dont make any withdrawal from next Jan, the $3M will grow to $3.5M by the time we turn 65 (in 5 years time) - growing purely by interests earned. And if we continue to max out the yearly contribution (again as SMOL teased), the $3M will grow to $4M as we turn 65.
That's when we can then meet Mr Loo Cheng Chuan's audacious 4M65 goal for a couple.
So what can we (as a couple) expect to get yearly at 65 ?
Scenario 1: With $3.5M at 65,
Interest from OA & SA = $67,800 pa
CPF Life payout = $44,000 pa
Total annual passive income from CPF = $111,800
Scenario 2: With $4M at 65
Inerests from OA & SA & MA = $84,500
CPF Life payout = $48,000
Total annual passive income from CPF = $132,500
For scenario 2, as you are keeping up with the yearly increase in the MA BHS through yearly contribution, you will hit the BHS at 65 at which point the amount will be fixed. From then on, you can withdraw the interest earned in your MA from 65 onwards.
So as you can see, Mr Loo does have a point with 1M65 or 4M65.
Disclaimer : I am not Mr Loo and I only know of the 1M65 movement after I turned 55. I did it my way -- so sang Frank Sinatra.
$133K is amazing passive income from your CPF! Well done!
DeleteInvesting is a Game of Capital and Game of Strategy.
Now realized that CPF is also a Game of Capital for those can afford to play this Game and it will certainly end well!
CW,
DeleteSee? That's how much you leaving money on the table by taking money out from CPF!
Jokes aside, its great isn't it to have diversity of views here like 8 immortals crossing the Eastern Sea ;)
I mean if we are not confident of our "bawu", one can easily get tilted or off balanced when others share a different opinion from us.
At the end of the day, we do it m way like the 8 immortals do :)
Of course can and must poke at each other along the way!
No joke; no fun!
Cannot withdraw interest in January? During recent pre-55 consultation session, was shown amount of interest that will get in January. Asked officer if can withdraw just the interest alone after its credited on 02 January. Can. Berri confusing....so can or cannot I blur ??? LOL.
ReplyDeleteOf course, we can draw out interests at anytime. The question is when is the best month to withdraw maximum amount of interests without touching CPF SA principal. Can ask CPF again
DeleteDun forget divorced can lose half in some scenarios. Many Kenna d
ReplyDeleteCPF is by nomination. Can even nominate to mistress or white-face
ReplyDelete3 special cases for CPF nomination:-
ReplyDelete1. CPF nomination is annulled by marriage or re-marriage. So for those who had already nominated their children or parents, if after re-marry a new spouse ... they should re-nominate back their children or parents.
2. It is not annulled by divorce. So if after divorce never re-nominate, then whoever was the nominee will still get the funds ... may be the ex-spouse.
3. If no valid nomination, then the $$$$ will be treated as intestate & will be managed by the Public Trustee Office. Google "Singapore intestate succession act" for the sequence & priority of who will get the $$$$.
And your family members will need to get a Letter of Administration from the court to show to the PTO.
CPF nomination is a quick & dirty method, and is designed for layman without need for legal advice. But it's a blunt tool & doesn't provide for conditional or if-then-else criteria.
E.g. If XXX and YYY both predecease me, then 50% of Fund A to go to ZZZ, and 50% of same to go to ABC Charity.