Procedure for withdrawing your CPF at 55

[tanwahtiu]

it is a contract, legally bind, to return the money at 55.

You are an idiot. It is your own responsibility for your own finance but it is the Pap responsibility to return everything at 55.

 

[ginfreely]

30800 is the annual maximum voluntary contribution limit. Cpf mandatory is capped at 5k salary x 20+16%. which is 1800.

Yeah I remember for a long time it was capped at 4500 salary only. I think only people who started working in 80s or earlier with no cap in salary for Cpf contribution can accumulate huge CPF like 800k.

 

[Fatboy]

Yeah I remember for a long time it was capped at 4500 salary only. I think only people who started working in 80s or earlier with no cap in salary for Cpf contribution can accumulate huge CPF like 800k.

They are not stupid, if uncapped, they will have to pay the interests until lao sai.

 

[Leongsam]

They are not stupid, if uncapped, they will have to pay the interests until lao sai.

Since it is now capped, it means that there is now more take home pay which Singaporeans can put to work to grow their own retirement funds.

Like I said, there are always positives that can be used to your advantage. CPF savings may now be lower after 30 years of working but Singaporeans should have more in their own investment accounts which they can grow at 8% or more per annum.

 

[scroobal]

Taking personal responsibility has been PAP's mantra and the simpletons always get hooked. Not everyone and their families can predict major illness, unexpected events etc. Pooled and combined bargaining power will cut the costs of ridiculously priced premiums and close off all the exclusions. Nobody is asking for freebies.

PAP needed to ensure NTUC Income succeed and fed the morons the concept of personal responsibility. And the mindless idiots bought it. A fraction of our yearly CPF contribution set aside as premium 30 years ago would have bought our families and us peace of mind and a far more balanced life.

The Singaporeans that moved to OZ and Canada will tell you the relief that it brings to their life. State subsidised premiums also ensures that you choose your surgeon and room standard based on your cost appetite. Buying power in group is always much better than individuals dealing with big companies.

 

[KNNBHCB]

The pappies' life is always better. One woman pappy MP was quoted as having said that Ministerial pay should not be reduced or it would be not worthwhile to serve. Another pappy MP Lee Wee Kiat said ministerial pay must match corporate big wig's pay to get on level to level talk.

What kind of cock talk coming from such pappies?

Think this Lee Wee Kiat LJ damn small till he feel so inferior. Need super high pay to compensate his small LJ when talking to angmo coz angmo tah kee. CCB. Pui!! :kma:

As for the woman pappy MP, if ministerial pay reduced she can open her legs in Geylang. Another CCB! KSMLJ? :kma: :oIo:

 

[halsey02]

Think this Lee Wee Kiat LJ damn small till he feel so inferior. Need super high pay to compensate his small LJ when talking to angmo coz angmo tah kee. CCB. Pui!! :kma:

As for the woman pappy MP, if ministerial pay reduced she can open her legs in Geylang. Another CCB! KSMLJ? :kma: :oIo:

In the corporate world, WKS, 'wife' etc...even the comm of the poodles etc...making that kind of spectacular mistakes WILL BE SACK! ON THE SPOT!! PAY MUST MATCH THE RESPONSIBILITY....right?? I make that kind of mistake...my boss, will walk me to the door....

 

[ChoBohLan]

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.

Please lah Boss... you think you very smart with your will?

If you are forced into the CPF Life scheme now and if you take up the default standard plan of lower bequest option, when you die, PAP is going to sapu all your money in the CPF leaving very little for your beneficiaries. How much? $1?

Before they 'streamline' to the current two options, the earlier batch was offered the zero bequest option. In that case, the PAP will sapu all the money when you die.

No where in the 'Reaching 55' handbook states how much your beneficiaries will be getting. Why?

 

[winnipegjets]

I doubt if the elections will change anything. Most prudent and rational Singaporeans will see the wisdom of the CPF scheme as it stands today.

These are dumb ones then. The government is stealing from them and they think that they are getting a good deal. Inflation will eat up their 'savings'.

The government withholds a small percentage of CPF funds in order to prevent some Singaporeans who are very poor in financial management from ending up penniless and destitute. The majority of the money can be withdrawn with no hindrance or conditions at all.

If this government has the welfare of sinkees, then it would turn the CPF into a define benefit plan. It is a win-win situation. But this government won't do it because the CPF is free money for them to use.

 

[yinyang]

... annual cap in the good old days? I don't recall having any such restrictions. 20% of my bonus disappeared immediately.

Bonuses hit @20%, no cap. Considered as "variable", non-ordinary wages. Knife cuts both ways, your ex boss had to cough up corresponding rate.

 

[winnipegjets]

Since it is now capped, it means that there is now more take home pay which Singaporeans can put to work to grow their own retirement funds.

Like I said, there are always positives that can be used to your advantage. CPF savings may now be lower after 30 years of working but Singaporeans should have more in their own investment accounts which they can grow at 8% or more per annum.

Yeah right, pure bs. Most people know nuts about investing. Given the unsophisticated nature of the investment industry in sinkapore, most people will get fleece by these so called 'financial advisers'.

The CPF is a big pool of funds to support the establishment of a pension plan. With that size, it has a better chance of realizing 8 percent return or more at relative low cost than an individual. There is NO justification that a pension fund can not be established to replace the CPF scheme.

 

[Big Sexy]

no .. it is stated
All CPF contributions, whether mandatory or voluntary, will form part of the CPF Annual Limit. From 2011, the CPF Annual Limit is $30,600.
http://mycpf.cpf.gov.sg/Employers/E...Employer_Limits_CPF_cons_CPF_Annual_Limit.htm

30800 is the annual maximum voluntary contribution limit. Cpf mandatory is capped at 5k salary x 20+16%. which is 1800.

 

[MaiTuLiow]

I'm relating what I was told. However, I have no reason to disbelieve this figure based on my own experiences.

If my memory serves me well, close to $2,400 per month was going into my CPF account monthly. Then there were contributions from 13th month bonuses plus additional end of year bonuses based upon company and personal performance. Commissions were also subjected to CPF deductions.

My cousin worked in banking for many years before he retired in his late 40s to do his own consultancy work. 6 to 8 months bonus was the norm during the good years and 2 to 3 months was typical of the quieter years.

If you do the sums, it works out. $2000 per month (employer plus employee estimated) x 16 months (12 + average 4 months bonus) x 25 years = $800,000 without adding the compound interest.

Your cousin no need to buy house or loss money in the stock market? Do own consultancy work also have 6 to 8 months bonus? So good deal? I also want. Mai tu liow, I am going to open one consultancy company specialising in borrowing your watch to tell you the time. You must be joking.

 

[Big Sexy]

YY. these days...there is also a skill development levy that employers have to pay beside the employer cpf contribution...

. Knife cuts both ways, your ex boss had to cough up corresponding rate.

 

[McDonaldsKid]

Thanks to whomever upped my points.

 

[sleaguepunter]

no .. it is stated
All CPF contributions, whether mandatory or voluntary, will form part of the CPF Annual Limit. From 2011, the CPF Annual Limit is $30,600.
http://mycpf.cpf.gov.sg/Employers/E...Employer_Limits_CPF_cons_CPF_Annual_Limit.htm

KNN mix up. Basic salary is limited to 1600 per month but the when add in the variable component, the limit become 30600 per annum.

 

[Cerebral]

KNN mix up. Basic salary is limited to 1600 per month but the when add in the variable component, the limit become 30600 per annum.

I am sure the annual CPF cap is meant for the ministers and their rich kakis. Most are in senior position and a large portion of their pay is in bonuses. Monthly CPF contribution is capped at 5k, which is ok for them, but can you imagine when they get 30 months bonus and there is no cap, they have to put in 20% of their million dollar bonuses into CPF, which they cannot touch until 55 years old. Who would want such a cut to their money?

 

[JiaJia]

If PAP change to allow maximum withdrawal at 55, I will vote PAP. Otherwise, FUCK OFF!

 

[Leongsam]

Yeah right, pure bs. Most people know nuts about investing

This is precisely why CPF is such an excellent scheme. The government knows that in most cases, money in the pocket is usually squandered on frivolous pursuits and the same thing would happen if the entire sum was handed over at 55. The vast majority of recipients of such a windfall would lose it all in no time and would have nothing at all for the remainder of their sorry lives.

I really admire the PAP for refusing the budge on this issue. It may be costing them political capital but it saves many Singaporeans from ending up dead broke.

 

[Leongsam]

Your cousin no need to buy house or loss money in the stock market? Do own consultancy work also have 6 to 8 months bonus? So good deal? I also want. Mai tu liow, I am going to open one consultancy company specialising in borrowing your watch to tell you the time. You must be joking.

I don't know the details of his private life but he's not a high flier. Worked in a bank for most of his life before deciding to go easy in the latter part of his career to do consultancy work. What exactly he did I have no idea. I actually gave him a call last night and he told me exactly what was on his statement in 2012 before he withdrew a large portion last year.

He had $835,800 in his ordinary account. $2,600 in his special account, $33,800 in his medisave account and $129,000 in his retirement account.

If he can accumulate these sorts of savings in his CPF, anyone with half a brain can do the same. I never considered him to be THE SMARTEST TOOL IN THE SHED. Just an average Joe. He lives in a 5 room HDB apartment. His wife worked in an Ang Moh company in Accounts before retiring 2 years ago at 50. I asked him how much she had in her CPF and he told me it was around $380,000 in the ordinary account. She was just an accounts assistant not a qualified accountant.

Singaporeans certainly are very lucky. These sorts of figures are unheard of in NZ where many people retire with ZERO savings at 65 (official retirement age) and rely entirely on the government pension to get by. I have mentioned the CPF scheme to many of those I know and they are full admiration and wish that they too had such large sums of money to their names.