Good luck to those who have good faith in our CPF scheme and how many more shifting Goal posts waiting down the Road for you!
Read? Another New CPF Shifting Post Without Informing Affected Members!
Thursday, 22 December 2016
Read? Turning 55 - and enjoying financial freedom (5)
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.
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Uncle8888 clarified farther ...
Thank you for fast reply!
Quote from your reply : "As part of the Board’s ongoing efforts to ensure our administrative practices are aligned with the market practice, we have revised our practice such that only the savings in your CPF accounts can be withdrawn."
With the change of CPF administrative practices are aligned with the market practice in 2022; I can only withdraw CPF SA and CPF OA interests earned for 2022 on Jan 2023 instead of Dec 2022. Pls help to confirm my understanding is correct as below :
Estimated numbers for withdrawal from
CPF SA = $1,691 and CPF OA = $24,000 - $1,691 = $22,309. Total $24K.
It is NOT $24K from CPF SA! Right?
Thank you!
CPF''s reply ....
We refer to your enquiry via My Mailbox of 21 February 2022.
Please allow us to clarify. As explained in our replies of 17 February and 21 February 2022, if your SA balance is equal to or more than the withdrawal amount of $24,000, the full withdrawal amount will be from your SA and there will be no deduction from your OA savings.
The interest earned for 2022 will be credited to your SA and OA respectively on 1 January 2023, forming part of the principal balances and will be deducted from the principal balances upon withdrawal.
With reference to your example given, if you were to make a withdrawal after 1 Jan 2023 and your SA principal balance is sufficient for the withdrawal, the withdrawal amount from each account will be as follows: SA = $24,000 and OA = $0.
We hope the above clarifies, thank you.
Posts
CW,
ReplyDeleteLOL! Stay chill lah!
2.5% is still better than fixed deposits at our banks... No?
You smart; big daddy not stupid hor ;)
By the way, CPF is CPF; bonds are bonds.
Bonds got capital appreciation and capital losses - that's why buy bonds is INVESTING ;)
Need skill and luck.
Voluntary contribution of CPF is SAVINGS. Look mom! No brains needed!
LOL!
Uncle8888,
ReplyDeleteU are in better position than most to make lemonade out of this lemon.
Since most of your interest comes from OA and you're starting RSS payouts soon, one solution can be to transfer your SA to RA and let it be amortized via the 25 year payouts. You'll still be getting the 4% interest plus the extra 1% and 2%.
Then every Jan, just withdraw the credited OA interest. Or you can withdraw smaller sums, every couple months or so, thus allowing more interest to be earned. Since the RSS payouts are already larger.
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I was initially thinking whether can use SA shielding to preserve the SA.
i.e. shield the SA, then withdraw OA interest, then unshield the SA, do all in Jan.
But I think the $40K CPFIS-SA threshold still applies even if 55+ and already meet the retirement sum?
Cest la vie! Shit happens! 🤣
Can still withdraw OA and SA interests in Nov but will forgo 1 month compounding of principal correct?
ReplyDeleteAll partial CPF withdrawal starting from 2022 will take from CPF SA and then CPF OA.
DeleteWithdrawing CPF interests only has become History in 2022. Thank to CPF ever shifting Goal posts!
😧 and they quietly and surreptitiously did that … couldn*t see any other announcements or blog posts other that yours on this. Definitely big change of plans for when I turn 55 next year
DeleteCPF withdrawal scheme is NOT transparent to members at all! I have been withdrawing earned interests from CPF SA and OA without touching the principal in SA for the last 5 years since 2017; and suddenly in 2022 it changed the rule (without informing me or I have missed out the communication in my CPF email alert).
DeleteA big thank to reader who has alerted me on the change of withdrawal scheme! It will be a bloody shock to me if I continue to withdraw earned interests on Dec 2022 and the next day check CPF transaction history and see CPF SA less $24K! Bloody hell! CPF!
Hope more younger CPF members can open their eyes wide and their mind wider! Anytime CPF Goal posts and rules can change! No need to seek public Consultation or discuss in Parliament?
Uncle8888,
DeleteWithdrawal sequence not spelled out in CPF Act or Subsidiary Legislation, so no need to seek parliament approval for changes.
I guess in the old days, there might be some tone-deaf MPs who will raise it if enough constituents jio him. But it will definitely lead to uncomfortable questioning & revelations, how many % have 7 CPF figures, "freeriding" accusations, gaming the system, politics of envy.
Doubt if any of the younger MPs will be dense enough to bring it up. Not until more than half of sinkies have 7 figures in their CPF lol. A question for future generations, perhaps.
Sometimes, silence is golden! 🤣
PS: Invasion underway. To sound crass, time to go shopping for stocks.
This comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteUnless goal post change again and also cannot withdraw SA and OA until eligible for CPF Life or exhausted RSS so that it can compensate for inflation... and CPF Life might also start at 70 by then due to longevity of all shittyzens
ReplyDeleteCW, maybe you can park all your SA in bonds first. Then withdraw your OA before selling the SA bonds.
ReplyDelete