Procedure for withdrawing your CPF at 55

[Leongsam]

As long as the 60% vote for the PAP they will never get their CPF.
I think many of them now know this. By the time the GE rolls around they should all know this.

Those who understand retirement planning will be able to grasp the concept of "capital" and "yield".

When it comes to retirement, the capital is the amount of assets that you have accumulated. The yield is the what the capital earns on a regular basis.

Retirement is a period of ones life when the bulk of your capital should be invested in the lower risk category to yield a lower but steady and reliable income with little or no risk of losing the capital. This is what the CPF scheme is.

People complain that the $148,000 cannot be touched in their lifetimes but this is precisely how retirement capital should be treated. If anything it should be topped up whenever possible so that the power of compound interest can be unleashed.

I have a bit more than $148,000 to retire on but I DON'T TOUCH MY CAPITAL either. This is because I forbid myself to spend even a small portion of it. I don't depend upon a government to tell me I can't touch it. I impose that law upon myself for my own good. I spend only what the capital earns and I intend to stick to this rule till I draw my last breath because it is a prudent rule by which to live ones life.

So even if the government allowed the $148,000 to be withdrawn, no sinkie should spend even a small portion of it. They should only spend the yield that it generates.

I know it pisses people off when something is forced down your throat but treat it as the bitter pill that needs to be swallowed and tell yourself that even if the minimum sum was handed over to you at 55, you would put it straight back into a term deposit and spend only the interest. It may not taste nice but it does wonders for your financial health.

 

[McDonaldsKid]

Those who understand retirement planning will be able to grasp the concept of "capital" and "yield".

When it comes to retirement, the capital is the amount of assets that you have accumulated. The yield is the what the capital earns on a regular basis.

Retirement is a period of ones life when the bulk of your capital should be invested in the lower risk category to yield a lower but steady and reliable income with little or no risk of losing the capital. This is what the CPF scheme is.

People complain that the $148,000 cannot be touched in their lives but this is precisely how retirement capital should be treated. If anything it should be topped up whenever possible so that the power of compound interest can be unleashed.

I have a bit more than $148,000 to retire on but I DON'T TOUCH MY CAPITAL either. This is because I forbid myself to spend even a small portion of it. I spend only what the capital earns and I intend to stick to this rule to my last breath because it is a good rule by which to lives ones life.

So even if the government allowed the $148,000 to be withdrawn, no sinkie should spend even a small portion of it. They should only spend the yield that it generates.

I know it pisses people off when something is forced down your throat but treat it as the bitter pill that needs to be swallowed. It may not taste nice but it does wonders for your financial health.

So what happens to your capital after you pass on? Bequeathed to your kids?

 

[GoldenDragon]

Celebrity dog trainer Cesar Millan commented that 'humans are the ones who need to be trained, not dogs, because pooches react to the energy from humans.' Blame who for CPF scam? Blame the 60%.

 

[tanwahtiu]

this is liquid cash, not hard asset. Liquid cash under an organization be it government or private companies can be loss through poor sight investment.

I would rather have my liquid cash with me Gods know if PAp get booted out and the organization run road and your CPF gone forever? Not worth this gamble.

At 65 is too frail to see your CPF money. This nonsense has to be stopped.

Those who understand retirement planning will be able to grasp the concept of "capital" and "yield".

When it comes to retirement, the capital is the amount of assets that you have accumulated. The yield is the what the capital earns on a regular basis.

Retirement is a period of ones life when the bulk of your capital should be invested in the lower risk category to yield a lower but steady and reliable income with little or no risk of losing the capital. This is what the CPF scheme is.

People complain that the $148,000 cannot be touched in their lifetimes but this is precisely how retirement capital should be treated. If anything it should be topped up whenever possible so that the power of compound interest can be unleashed.

I have a bit more than $148,000 to retire on but I DON'T TOUCH MY CAPITAL either. This is because I forbid myself to spend even a small portion of it. I don't depend upon a government to tell me I can't touch it. I impose that law upon myself for my own good. I spend only what the capital earns and I intend to stick to this rule till I draw my last breath because it is a prudent rule by which to live ones life.

So even if the government allowed the $148,000 to be withdrawn, no sinkie should spend even a small portion of it. They should only spend the yield that it generates.

I know it pisses people off when something is forced down your throat but treat it as the bitter pill that needs to be swallowed. It may not taste nice but it does wonders for your financial health.

 

[blindswordsman]

... I have a bit more than $148,000 to retire on but I DON'T TOUCH MY CAPITAL either. This is because I forbid myself to spend even a small portion of it. I don't depend upon a government to tell me I can't touch it. I impose that law upon myself for my own good. I spend only what the capital earns and I intend to stick to this rule till I draw my last breath because it is a good rule by which to lives ones life.

So even if the government allowed the $148,000 to be withdrawn, no sinkie should spend even a small portion of it. They should only spend the yield that it generates.

So, Uncle Sam, who gets to enjoy your "capital" put in CPF? Your nominee, right? Why should you slog for years and let someone else enjoy your hard earned money? Your nominee may be your children, wife, etc but do they care for you that much to inherit your capital?

Any smart ass would certainly like to enjoy his hard earned money first and then leave fixed assets to his descendants. As for hard cash, it is not wise to leave it to someone else to enjoy.

 

[Leongsam]

So what happens to your capital after you pass on? Bequeathed to your kids?

I have drawn up my will. It will go into a trust and the income used to further the cause of animal welfare. SPCA, WSPA etc. The trustees will administer the trust according to the guidelines I have spelt out.

 

[Leongsam]

this is liquid cash, not hard asset. Liquid cash under an organization be it government or private companies can be loss through poor sight investment.

Capital flows from one market to another like water in this day and age. Most of my assets are liquid at this stage of my life. I also have some in property and some in bonds and stock.

Stocks carry a higher risk and therefore a higher return is expected but in reality, I find that it isn't that much more than what I have been achieving with my more liquid assets.

Property is a hedge against inflation but it yields very little because it requires considerable overheads in order to maintain. The theoretical yield from rental is 7% to 8%. In reality, it is more like 0% to 4%. However, the capital gain over the long term makes up.

 

[sleaguepunter]

hope the Gen X, Y and Z join in this discussion which is also important to them.

i doubt i can meet the min req sum when i reach 55yo as pap keep increasing the amount. i already no hdb mortage to service and no debt. everytime move closer, pap add another 20k to it. like that forever wont reach.

 

[Leongsam]

i doubt i can meet the min req sum when i reach 55yo as pap keep increasing the amount. i already no hdb mortage to service and no debt. everytime move closer, pap add another 20k to it. like that forever wont reach.

That's because the government is prudent and looks at future values. $148,000 of today's money is equivalent to $168,000 a few years down the road.

 

[tanwahtiu]

PAP hire poor foresight CEO Ho Jinx and when she buy long term products when is it going to cash out? I don't see it is a good idea it is your money, not hers.

Capital flows from one market to another like water in this day and age. Most of my assets are liquid at this stage of my life. I also have some in property and some in bonds and stock.

Stocks carry a higher risk and therefore a higher return is expected but in reality, I find that it isn't that much more than what I have been achieving with my more liquid assets.

Property is a hedge against inflation but it yields very little because it requires considerable overheads in order to maintain. The theoretical yield from rental is 7% to 8%. In reality, it is more like 0% to 4%. However, the capital gain over the long term makes up.

 

[sleaguepunter]

I have drawn up my will. It will go into a trust and the income used to further the cause of animal welfare. SPCA, WSPA etc. The trustees will administer the trust according to the guidelines I have spelt out.

if u really want to improve animal welfare in spore, i suggest you dont only limited to spca, there still a few animal rights organisations in spore that deserve more than spca.

 

[sleaguepunter]

That's because the government is prudent and looks at future values. $148,000 of today's money is equivalent to $168,000 a few years down the road.

so that mean by the time i 55yo, the min sum req is $300k liao.

 

[tanwahtiu]

come on, this is not leveraging the inflation. That money should be able to make 5% interest by itself and reach $168K. Why should you cough up anther ridiculous $20,000.

That's because the government is prudent and looks at future values. $148,000 of today's money is equivalent to $168,000 a few years down the road.

 

[johnny333]

even if pap get boot out, many also wont see their cpf back as there nothing in the coffers. no politician, pap or alternate parties, will dare to use cpf as a election promise as it can blow up in their own face.

The problem with the CPF might only be the tip of an iceberg. The PAP could be hiding plenty of other skeletons.
If you got a cancer it is better to know earlier so that you can take steps to cut it out.

 

[halsey02]

I work hard all my life, with my blood, sweat & tears & while I work, I AM FORCED BY LAW to allocate a certain percentage of my salary as savings, when I retire...WHEN? when do I retire? 55, 65, 67, 68 , 69, 79, 89, 99...109?? that is the question...every year the PAP is in power...I get to retire, further & further away...& my savings, I get in parts...not that I do not get them....by the main part of it is pushed, further & further & further away....for the retirement age, keep changing & my ability to check out my funds gets shifted again...

We have allowed the PAP government to this to us, without any consultation or even objection...ah! yes!.."mer siam mai hum" mentioned that no one protested on the streets....so go figure this out!!, no one protest...it is up to whoever is holding our money, to keep on 'changing the goal post"...free to use the funds that is perpetually flowing in & almost never given out...

We should have stuck on the old days, where people retire at 55 years, withdrawal their entire CPF....ok!, my money, I want spend it all & die quicker my wish... I want F#$#%%% every broad on this earth with it...MY MONEY..not somebody's else to give me, MY MONEY.

Our neighbour EPF...their members are given options to withdraw all, leave some behind & withdraw the rest at a regular interval or withdraw the regular sum at a regular interval....BUT HERE, WE HAVE PEOPLE PUTTING RESTRICTIONS ON YOURS & MINE SAVINGS..

Who care about capital, investments etc...we work hard for 34 years or more...when we retire WE WANT OUR BLOOS SWEAT & TEARS SAVINGS...

 

[sleaguepunter]

just found out there another $40500 cannot touch. the medisave min sum. if mediasave dont have $40500 at 55yo, the balance will be drawn from OA and SA. like that min sum req now already $188500.00.

 

[tanwahtiu]

PAP getting dodgy by the years. Something is definitely wrong at TH? Some forms of corruptions or money stolen which they cannot recovered thus cause them to hold your CPF money.

This was way back in 1992 which this scam started.

just found out there another $40500 cannot touch. the medisave min sum. if mediasave dont have $40500 at 55yo, the balance will be drawn from OA and SA. like that min sum req now already $188500.00.

 

[halsey02]

just found out there another $40500 cannot touch. the medisave min sum. if mediasave dont have $40500 at 55yo, the balance will be drawn from OA and SA. like that min sum req now already $188500.00.

The maximum balance for medisave contribution is 45,500...http://mycpf.cpf.gov.sg/CPF/News/News-Release/N_7May2013.htm I have that maximum....or minimum.

How much money Min of Health is allocated of the minimum $40,500? say for every member for 1,000,000 members have that amount, roughly translate to:
$40,500,000,000

If one calculates the money IF THERE IS IN CPF ( if all reaches minimum)...it is mind boggling..it runs into '000,000,000 we are not talking about "peanuts' sum.......what are the benefits of that '000,000,000 to each citizen??

 

[KNNBNBCB]

just found out there another $40500 cannot touch. the medisave min sum. if mediasave dont have $40500 at 55yo, the balance will be drawn from OA and SA. like that min sum req now already $188500.00.

Bet you didn't know there is another thing Medisave Contribution Ceiling. Which is 5k above Medisave Minimum Sum.

From 1 July 2013,

a. The Medisave Minimum Sum (MMS) will be raised to $40,500 from $38,500. Members will be able to withdraw their Medisave savings in excess of the MMS at or after age 55.

b. The maximum balance a member may have in his Medisave Account, known as the Medisave Contribution Ceiling (MCC), is set at $5,000 above MMS and this would be increased correspondingly to $45,500, from $43,500. - See more at: http://www.mom.gov.sg/newsroom/Pages/PressReleasesDetail.aspx?listid=499#sthash.dpOk66Uq.dpuf

 

[Leongsam]

I work hard all my life, with my blood, sweat & tears & while I work, I AM FORCED BY LAW to allocate a certain percentage of my salary as savings, when I retire...WHEN? when do I retire? 55, 65, 67, 68 , 69, 79, 89, 99...109?? that is the question...every year the PAP is in power...I get to retire, further & further away...& my savings, I get in parts...not that I do not get them....by the main part of it is pushed, further & further & further away....for the retirement age, keep changing & my ability to check out my funds gets shifted again...

1. You are required by law to save a portion of your earnings but you forget that CPF also requires your employer to do the same which is to your advantage.

2. CPF relieves the cash flow requirements for servicing a housing loan. This makes a huge difference and not many countries get to enjoy this benefit.

3. There is nothing to stop you from starting your own retirement plan independent of the CPF scheme.

4. There is nothing stopping you from retiring at any age. All you have to do is set your financial goals towards this target. Once you meet them, you can retire.