View Full Version : How to Get Exempted From CPF Minimum Sum
http://www.drwealth.com/2014/05/11/understanding-cpf-minimum-sum-scheme/
http://www.drwealth.com/wp-content/uploads/2014/05/CPF-Min-Sum-Scheme-Diagram-by-Dr-Wealth.png
Also to note:
If your first property is financed by CPF, and you are are buying your second property but will dispose off your first property (within 6 months from the date of collection of the keys to the new property), you do not have to set aside minimum sum when using CPF to pay for that new property.
Also to note:
If your first property is financed by CPF, and you are are buying your second property but will dispose off your first property (within 6 months from the date of collection of the keys to the new property), you do not have to set aside minimum sum when using CPF to pay for that new property.
but on the flip side if u can't dispose that 1st prop within 6 months (which could be the case now) you can't use CPF for your 2nd prop after 6 months (i think) :D:D
but on the flip side if u can't dispose that 1st prop within 6 months (which could be the case now) you can't use CPF for your 2nd prop after 6 months (i think) :D:D
at 55.. it already pretty risky to play property if don't have sufficient $$$. not much mileage to leverage
I don't understand this anxiety about the minimum sum. I am 44 and I just checked my SA: balance + cpfis-SA already hit minimum sum. I take it as a forced saving and pension scheme to ensure we will not become a burden to the next generation!
I don't understand this anxiety about the minimum sum. I am 44 and I just checked my SA: balance + cpfis-SA already hit minimum sum. I take it as a forced saving and pension scheme to ensure we will not become a burden to the next generation!
You are 1 out of 8,
If you have spare cash
can top up
who knows by the time you are 55
MS became 400 to 500k :)
spare a thought for those who are unable to meet the ms
With continue contributions and 4-5% compound interest.. Should be alright at 55 :)
With continue contributions and 4-5% compound interest.. Should be alright at 55 :)
Well Done
you have make it but 7 others will be living in anxieties :)
Without the minimum sum to ensure a minimum standard after 65... Who is going to pay for it? The next generation? We have a situation here... "1.2"
frankly if u looking at pledging the home and at 50% or min sum. Its barely enough. coz CPF life at 77K pay out ard $600pm.
so its imperative the people need to save/invest themselves for their own retirement. I believe substantial education the population how they should plan early for their retirement.
Not everyone have the skill set to make 4% on their investment. So CPF is still for those who donno how to. those who know.. would do better.
I don't understand this anxiety about the minimum sum. I am 44 and I just checked my SA: balance + cpfis-SA already hit minimum sum. I take it as a forced saving and pension scheme to ensure we will not become a burden to the next generation!
Well a certain part of population is having anxiety about the min sum because they rather feel the $$$ in their hands. They feel they can do better.
That's why it is known as the MINIMUM sum! BASIC. I am not being arrogant or trying to show off. I just feel the it is our responsibility to plan for retirement. If you can't meet the basic, someone would have to pay for you.
Well a certain part of population is having anxiety about the min sum because they rather feel the $$$ in their hands. They feel they can do better.
Hum dum property? Bonds? Equity? Reits? With the "minimum sum" that provides you with the basic in your retirement comes what may instead of asking for handouts? Geeze....
Read the topic "how to get exempted from CPF minimum sum"!
Well people just bay song $$$ cannot hold in hand n count. but when they run out of $$ at 65 then its ah kong's fault.
Yes I think schools should introduce a subject called financial education and teach everyone importance of passive vs active income. As we age, really have less energy compared to younger...
Talk cock! :rolleyes:
at 55.. it already pretty risky to play property if don't have sufficient $$$. not much mileage to leverage
Think you all building castle in the air...........
retirement Min sum of $155,000 + medisave min sum of $45,000 = $200,000.
It seems that >80% of the people in Singapore will be unable to achieve >$200,000 by the time they retire...................... :scared-2:
So, they raise CPF min sum until $1 MILLION also useless! :banghead:
The best tohelp those people who don't have enough is to give higher CPF interest rates, close to the GIC+Temasek returns, say 10% or more, then min sum of $100,000 compounded over 15 years is already more than enough!
Without the minimum sum to ensure a minimum standard after 65... Who is going to pay for it? The next generation? We have a situation here... "1.2"
i was reading this
http://www.straitstimes.com/news/business/more-business-stories/story/how-the-cpf-minimum-sum-has-changed-over-the-years-2014050
those who meet the minimum sum at $80,000 in 2003 and retire then in 55.
10 years later in 2014, how much are they getting each month in 2014?
Talk cock! :rolleyes:
U are the biggest COCK ard. at 55 no cash tell me how many bank want to lend u $ to leverage? tell me. pls enlighten us with your COCK.
Think you all building castle in the air...........
retirement Min sum of $155,000 + medisave min sum of $45,000 = $200,000.
It seems that >80% of the people in Singapore will be unable to achieve >$200,000 by the time they retire...................... :scared-2:
So, they raise CPF min sum until $1 MILLION also useless! :banghead:
The best tohelp those people who don't have enough is to give higher CPF interest rates, close to the GIC+Temasek returns, say 10% or more, then min sum of $100,000 compounded over 15 years is already more than enough!
TALK COCK. SING SONG.
i was reading this
http://www.straitstimes.com/news/business/more-business-stories/story/how-the-cpf-minimum-sum-has-changed-over-the-years-2014050
those who meet the minimum sum at $80,000 in 2003 and retire then in 55.
10 years later in 2014, how much are they getting each month in 2014?
at 80K u would be looking at $600 today value.
i was reading this
http://www.straitstimes.com/news/business/more-business-stories/story/how-the-cpf-minimum-sum-has-changed-over-the-years-2014050
those who meet the minimum sum at $80,000 in 2003 and retire then in 55.
10 years later in 2014, how much are they getting each month in 2014?
u can use the cal to check.
https://www.cpf.gov.sg/cpf_trans/ssl/financial_model/lifecal/Life_Estimator.asp
http://sgyounginvestment.blogspot.sg/2014/05/all-about-cpf-minimum-sum-and-cpf-life.html?showComment=1400486871318
"
When you reach 55 years old
1) A person who does not meet the minimum sum of $155,000
If a person only has $100,000 in his Ordinary account (O.A) and Special account (S.A) combined, he can only withdraw a maximum of $5000 at age 55 and the rest will be put into his/her retirement account(R.A) in CPF. This works out to be $95,000 in his/her R.A.
2) A person who meets the minimum sum of $155,000
If a person has $200,000 in his OA and SA account combined, he can withdraw all of the money less the minimum sum. He/she can withdraw $45,000 at age 55. Therefore, $155,000 will be put into the RA account.
However, there is also a medisave minimum sum(MMS) which we need to meet. The MMS will be $43,500 from 1 July 2014. If you do not have this amount in your Medisave, you'll need to top it up with your OA and SA to make up for the shortfall before you can withdraw the balance after meeting the minimum sum.
3) A person who meets or does not meet the minimum sum of $155,000 and pledges his/her house
You can pledge your house value up to half of the minimum sum. This means for a minimum sum of $155,000, you can pledge up to $77,500. By pledging your house, you can actually draw out more money, which means you can take out an extra of $77,500 out in cash from your CPF once you reach 55. However, because you draw out more money at age 55, your RA account will have lesser money and you will receive lesser monthly payout at your draw-down age. For those born after 1953, the draw down age is 65.
For example, if you have $200,000 in your OA and SA currently, you can withdraw $122,500 out from your CPF at age 55 if you pledge your house. This is more than the $45,000 previously for a person who does not pledge his/her house. If you have less than the minimum sum in your OA and SA combined, your house will be automatically pledged up to 50% of the minimum sum to make up for the short fall. For example, if you have $100,000 in your OA and SA, your house will be automatically pledged.
However, do take note that you can only pledge up to the amount you pay for your housing loan using CPF. If you used only $50,000 in your CPF to pay for your house, then you can only pledge up to $50,000.
*Note: If you pledge your house and then decide to sell your house after that, you'll have to return back the pledged amount plus interest back to your CPF account.
The more money you have in your RA, the better the payout
The minimum sum was raised to ensure better payout for Singaporeans when you're old. Imagine if the minimum sum is still at $80,000 in 2003 and has not raised till now, what would be the monthly payout you will receive? Using a CPF Life payout calculator, the monthly payout is estimated to be $695 to $766. Is this enough to survive on?
Of course, we can argue that why not the government give us all our CPF money at age 55 and not have all these CPF life scheme or this minimum sum thing? It's our money after all and we can decide how we want to spend it right? Don't the government trust us to manage our own money? The truth is, very few people will be able to manage their money wisely. Either we spend it lavishly to enjoy or we get cheated of our money at old age. This has happened a lot of times. Some gamble it away while some fall into scams. This is the reality. With this, the CPF schemes act as a safety net to prevent escalating social problems."
at 80K u would be looking at $600 today value.
u can use the cal to check.
https://www.cpf.gov.sg/cpf_trans/ssl/financial_model/lifecal/Life_Estimator.asp
thank you minority, you are a nice chap if not for constantly quarreling with those who disagree with you :)
anyway, in 2003, $80k look like a big sum and $600 per month looks like big value.
now in 2014, that $600pm kinda looks pittance.
similarly for $1200pm annuity, now looks quite big, but in 10 years time? and in 20 years time?
is there a cost-of-living-adjustment for annuity payment?
thank you minority, you are a nice chap if not for constantly quarreling with those who disagree with you :)
anyway, in 2003, $80k look like a big sum and $600 per month looks like big value.
now in 2014, that $600pm kinda looks pittance.
similarly for $1200pm annuity, now looks quite big, but in 10 years time? and in 20 years time?
is there a cost-of-living-adjustment for annuity payment?
Well its a minimum sum. I take it as really minimum. Assuming one did not plan at all.. $600 a mth can be a lot. For someone who did plan $600 is really extra.
Well maybe thats why the new value to hit is $1200pm for those who retire now. Thus the 155K min sum which people not happy abt. Surely more than likely in 10yrs-15yrs time the $1200 will the current batch is drawing will feel like $600.
Fact is inflation will always catch up. As the saying goes. Death, Life, Taxes and inflation are 4 certainties. So the question is people need to learn to plan ahead? Education is key coz many in the early days don't plan. The facts we are in this forum show that either the forumers have planned or at least woke up from the slumber of denial that planning needs to begin.
Well its a minimum sum. I take it as really minimum. Assuming one did not plan at all.. $600 a mth can be a lot. For someone who did plan $600 is really extra.
Well maybe thats why the new value to hit is $1200pm for those who retire now. Thus the 155K min sum which people not happy abt. Surely more than likely in 10yrs-15yrs time the $1200 will the current batch is drawing will feel like $600.
Fact is inflation will always catch up. As the saying goes. Death, Life, Taxes and inflation are 4 certainties. So the question is people need to learn to plan ahead? Education is key coz many in the early days don't plan. The facts we are in this forum show that either the forumers have planned or at least woke up from the slumber of denial that planning needs to begin.
Looking at different perspective
A)There are those who do not need to plan (Every month got excess money)
B)There are those who plan and be able to meet target
C)There are those who plan and unable to meet target
D)Still there are those who plan and plan and still money not enough, practically hand to mouth
Talk cock lah!
Plan for people?
Plan for >80% of people who can't achieve min sum when they retire? :rolleyes:
Think they should plan for people more constructively like give better interests to help these >80% retire more comfortably?
Min sum must increase with inflation?
Why Financial aids never increase with inflation?
Is Min wage (or progressive wage if you like better names) going to increase with inflation every year or not? :p
Taxes increase is a certainty? Holy cow! The income taxes for top earners and businessmen had just been cut from 30% to 20/18% !!! :doh:
Well its a minimum sum. I take it as really minimum. Assuming one did not plan at all.. $600 a mth can be a lot. For someone who did plan $600 is really extra.
Well maybe thats why the new value to hit is $1200pm for those who retire now. Thus the 155K min sum which people not happy abt. Surely more than likely in 10yrs-15yrs time the $1200 will the current batch is drawing will feel like $600.
Fact is inflation will always catch up. As the saying goes. Death, Life, Taxes and inflation are 4 certainties. So the question is people need to learn to plan ahead? Education is key coz many in the early days don't plan. The facts we are in this forum show that either the forumers have planned or at least woke up from the slumber of denial that planning needs to begin.
Talk cock lah!
Plan for people?
Plan for >80% of people who can't achieve min sum when they retire? :rolleyes:
Think they should plan for people more constructively like give better interests to help these >80% retire more comfortably?
Min sum must increase with inflation?
Why Financial aids never increase with inflation?
Is Min wage (or progressive wage if you like better names) going to increase with inflation every year or not? :p
Taxes increase is a certainty? Holy cow! The income taxes for top earners and businessmen had just been cut from 30% to 20/18% !!! :doh:
Don't worry la
Government got say
Nobody will be left behind
We will have Swiss Standard of living
Looking at different perspective
A)There are those who do not need to plan (Every month got excess money)
B)There are those who plan and be able to meet target
C)There are those who plan and unable to meet target
D)Still there are those who plan and plan and still money not enough, practically hand to mouth
Then I guess u need to draw a avg across. B & C.
Talk cock lah!
Plan for people?
Plan for >80% of people who can't achieve min sum when they retire? :rolleyes:
Think they should plan for people more constructively like give better interests to help these >80% retire more comfortably?
Min sum must increase with inflation?
Why Financial aids never increase with inflation?
Is Min wage (or progressive wage if you like better names) going to increase with inflation every year or not? :p
Taxes increase is a certainty? Holy cow! The income taxes for top earners and businessmen had just been cut from 30% to 20/18% !!! :doh:
Consumption tax is not TAX? u got COCK blocking your sight?
What is the point to give a bloody fish to a person who can only eat 1 meal rather than teach the person to fish! u everyday think of getting free fish only Oh forgot... u are running on ur script mode.... GST, Min wage and so on. All those cock n bull story.
SHOW ME the PROOF 80% cannot meet min sum PLS!!! SHOW ME. Before u start talking COCK.
Then I guess u need to draw a avg across. B & C.
Yes these are the people who have fallen through the crack
and need a safety net
so if the Government had promised us (as mentioned)
what are the safety net in place in time of emergency ?
Yes these are the people who have fallen through the crack
and need a safety net
so if the Government had promised us (as mentioned)
what are the safety net in place in time of emergency ?
http://app.msf.gov.sg/Portals/0/Topic/Issues/CSSD/03-Overview-of-Singapore-Social-Safety-Net.pdf
http://app.msf.gov.sg/Portals/0/Topic/Issues/CSSD/03-Overview-of-Singapore-Social-Safety-Net.pdf
Hahaha
some how know you are going to post this :ashamed1:
ask any social worker around and you will get the answer from the GROUND
somehow the net seem to be broken and need to be mended
sorry dude
Hahaha
some how know you are going to post this :ashamed1:
ask any social worker around and you will get the answer from the GROUND
somehow the net seem to be broken and need to be mended
sorry dude
What do you deme as broken also what is deme as sufficient? I don't think its perfect. but again everyone have a deferent perception as perfect. but I believe in 1 very key thing is give a person a fish he can only eat 1 time. teach a person to fish they can survive.
What do you deme as broken also what is deme as sufficient? I don't think its perfect. but again everyone have a deferent perception as perfect. but I believe in 1 very key thing is give a person a fish he can only eat 1 time. teach a person to fish they can survive.
Need to get down and listen to the ground
“This media we call social is anything but, when we open our computers and it’s our doors we shut”… :)
Need to get down and listen to the ground
“This media we call social is anything but, when we open our computers and it’s our doors we shut”… :)
Well in a perfect world everything is free and paid for. we all live in a garden of bliss and bath daily in the happiness of the morning light and listen to the soothing sound of young birds chirping. spending time forlicking in the green lush meadows eating grapes and dipping our toes crystal clear stream etc. etc. yadah yadah.
I have experience with my in law who have the misfortunes of contracting cancer. She is consider a Low Wage earner who work as a chamber maid. I have interacted with Social worker before on her case as the cost of Cancer treatment was escalating. There are social channels in my case that allow assistant on the situation. We might not have qualified for 100% assistance but its fair to say she did get assistance and manage to deal with the terminal illness. I agree it might not a a everything free ( in a ideal world). But there are venue that aid can be accessed.
Well in a perfect world everything is free and paid for. we all live in a garden of bliss and bath daily in the happiness of the morning light and listen to the soothing sound of young birds chirping. spending time forlicking in the green lush meadows eating grapes and dipping our toes crystal clear stream etc. etc. yadah yadah.
I have experience with my in law who have the misfortunes of contracting cancer. She is consider a Low Wage earner who work as a chamber maid. I have interacted with Social worker before on her case as the cost of Cancer treatment was escalating. There are social channels in my case that allow assistant on the situation. We might not have qualified for 100% assistance but its fair to say she did get assistance and manage to deal with the terminal illness. I agree it might not a a everything free ( in a ideal world). But there are venue that aid can be accessed.
sorry to hear about your in law
One of the fortunate case
but there were many such cases that were not well attended to
Many of us here are well covered by Hospital and Medical Insurance
because we can afford
Many more out there are unable to
not even able to pay for a term rider
so do you think for this group of people
raising the ms is good for them when their impending problem
are on bread and butter issue ?
from here I believed you will know where I am coming from
sorry to hear about your in law
One of the fortunate case
but there were many such cases that were not well attended to
Many of us here are well covered by Hospital and Medical Insurance
because we can afford
Many more out there are unable to
not even able to pay for a term rider
so do you think for this group of people
raising the ms is good for them when their impending problem
are on bread and butter issue ?
from here I believed you will know where I am coming from
Well thats life( I mean my in law case. ) When life throw u a curve ball u just have to make the best out of it. I can say my IL is lucky. Coz we were her buffer. The social assistance lasted for a good 60% of the time before we have to step in. In her case I will say she is the typical low wage scenario. But she didn't have to go to the extend to liquidate her home and downgrade for treatment. similarly she don't have private insurance coz never save much or believe in it. other than the medishield she had. At least the Social worker seek her out after the 1st treatment to brief her on her options and my spouse was invited for a means test interview. Which nautally we don't qualify but are referred to another avenue for social assistance to offset a % of the cost.
Do let me put it in another way. without raising the MS on a longer term problem after the bread n butter issue is settled how? the problem don't go away either. If the bread n butter which is near term can be address i.e. learn how to fish. The MS is to look at the longer term challenge once the person reach a stage who cannot even bring in his own bread or butter.
BTW CPF do allow access on funds on medical grounds.
http://mycpf.cpf.gov.sg/CPF/my-cpf/Healthcare/PvdHC8.htm
I think there are 2 issues here near term and long term. But most people are only interested in near term solution for near term issue. seldom wat to look at long term.
MS is to address the longer term issue.
Ha ha ha! Consumption tax!
So that those those who don't pay income taxes because pay too low suddenly need to pay taxes NOW?
and what's more, you are sure that the consumption will increase with time! :doh:
Consumption tax is not TAX? u got COCK blocking your sight?
What is the point to give a bloody fish to a person who can only eat 1 meal rather than teach the person to fish! u everyday think of getting free fish only Oh forgot... u are running on ur script mode.... GST, Min wage and so on. All those cock n bull story.
SHOW ME the PROOF 80% cannot meet min sum PLS!!! SHOW ME. Before u start talking COCK.
Well thats life( I mean my in law case. ) When life throw u a curve ball u just have to make the best out of it. I can say my IL is lucky. Coz we were her buffer. The social assistance lasted for a good 60% of the time before we have to step in. In her case I will say she is the typical low wage scenario. But she didn't have to go to the extend to liquidate her home and downgrade for treatment. similarly she don't have private insurance coz never save much or believe in it. other than the medishield she had. At least the Social worker seek her out after the 1st treatment to brief her on her options and my spouse was invited for a means test interview. Which nautally we don't qualify but are referred to another avenue for social assistance to offset a % of the cost.
Do let me put it in another way. without raising the MS on a longer term problem after the bread n butter issue is settled how? the problem don't go away either. If the bread n butter which is near term can be address i.e. learn how to fish. The MS is to look at the longer term challenge once the person reach a stage who cannot even bring in his own bread or butter.
BTW CPF do allow access on funds on medical grounds.
http://mycpf.cpf.gov.sg/CPF/my-cpf/Healthcare/PvdHC8.htm
I think there are 2 issues here near term and long term. But most people are only interested in near term solution for near term issue. seldom wat to look at long term.
MS is to address the longer term issue.
Then I guess u need to draw a avg across. B & C.
"Learn how to fish" is another topic altogether
Maslow Hierarchy
Basic needs need to be met first
once that settled then can move on to the next level and talk about long term and its a long process
but Government can definitely help by shortening this process
Oh gosh! Raise CPF min sum to help the poor who will never achieve the CPF min sum + medisave amount of $200,000 even if they work till 70 years old?! :doh:
Either this person is lying or just a plain stupid idiot! :rolleyes:
Well thats life( I mean my in law case. ) When life throw u a curve ball u just have to make the best out of it. I can say my IL is lucky. Coz we were her buffer. The social assistance lasted for a good 60% of the time before we have to step in. In her case I will say she is the typical low wage scenario. But she didn't have to go to the extend to liquidate her home and downgrade for treatment. similarly she don't have private insurance coz never save much or believe in it. other than the medishield she had. At least the Social worker seek her out after the 1st treatment to brief her on her options and my spouse was invited for a means test interview. Which nautally we don't qualify but are referred to another avenue for social assistance to offset a % of the cost.
Do let me put it in another way. without raising the MS on a longer term problem after the bread n butter issue is settled how? the problem don't go away either. If the bread n butter which is near term can be address i.e. learn how to fish. The MS is to look at the longer term challenge once the person reach a stage who cannot even bring in his own bread or butter.
BTW CPF do allow access on funds on medical grounds.
http://mycpf.cpf.gov.sg/CPF/my-cpf/Healthcare/PvdHC8.htm
I think there are 2 issues here near term and long term. But most people are only interested in near term solution for near term issue. seldom wat to look at long term.
MS is to address the longer term issue.
Ha ha ha! Consumption tax!
So that those those who don't pay income taxes because pay too low suddenly need to pay taxes NOW?
and what's more, you are sure that the consumption will increase with time! :doh:
Can you read or u need to learn to read. I say DEATH , LIFE , INFLATION & TAX are for certainties. Did I say who pay more who pay less? Got people no need to pay tax at all? if u don't know how to read there is nothing i can do. COCK EYE dumb ass.
Oh gosh! Raise CPF min sum to help the poor who will never achieve the CPF min sum + medisave amount of $200,000 even if they work till 70 years old?! :doh:
Either this person is lying or just a plain stupid idiot! :rolleyes:
u have a COCK in ur BRAIN? if they person is poor and cannot reach the min sum at 65 there are still a sum at least!!!!! can u read I say long term issue and near term issue?
oh cannot.. u got COCK in ur brain!
If like what u say then what the big deal them either way raise or don't raise like u say poor right cannot reach no $ either. so its just imaginary line then no diff what!
I see the min sum at least that person can get some $ at 65. verses no $ at all when hit 65 and cannot work! u are a cruel idiot cock.
Return my CPF!
26-07-20, 22:51
Does anyone know if this tactic still applies?? :D thanks
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