Originally posted by Rock^Star:
4% interest all the way once CPF member reaches 55. He has option
to park it in bank schemes or leave it in CPF.
Click here
and here
If a member's monies has reached the minimum sum, he may withdraw
up to half. Even if one does not achieve minimum sum, he may
withdraw up to a certain limit.
[b]CPF Withdrawal
1. How much can I withdraw from my Special and Ordinary Accounts
when I reach 55?
--------------------------------------------------------------------------------
If you reach 55 between 1 July 2006 and 30 June 2007, the following
rules apply:
CPF Balance at age 55 (excluding the amount in the
Medisave Account)
Amount which can be withdrawn
$5,000 or less - The member can withdraw all his savings
$5,000 to $10,000 - The member can withdraw up to $5,000 and set
aside the remainder in his Retirement Account*.
$10,001 to $189,200 - The member can withdraw up to 50% of the
total balance in his Special and Ordinary Accounts. The remainder
will be set aside in his Retirement Account.*
Above $189,200 - The member can withdraw all his savings after
setting aside the Minimum Sum of $94,600 (as at July 2006) and the
prevailing Required Amount ($11,500 for 2007) in the Medisave
Account [see Question 2].
*The Retirement Account is created when a member reaches age
55.
SOURCE
Yes the govt would like to keep our money for as long as possible
but they play fair here too. Do not let a lack of understanding of
the CPF mechanics hinder one's judgement.
[/b]
Thanks for your clarification but
looking at your referenced site given, the 4% is only applicable to
the Medisave, and Retirement Account only and not for the main
portion of our money in the CPF Account.
If the bulk of the CPF account holders have a long way to
retirement, the CPF amount is still paid 2.5% per
annum.
CPF Interest Rates (01 Apr 2007 to 30 Jun 2007)
(reviewed quarterly)
Ordinary account 2.5% p.a.
Medisave, Special & Retirement accounts 4% p.a.
CPF members receive a market-related interest rate (based on the
12-month fixed deposit and month-end savings rates of the major
local banks) on their CPF savings. For funds that are placed for
retirement and a longer period of time, like savings in the Special
and Retirement Accounts, members would earn additional interest of
1.5 percentage points above the normal CPF interest rate.
From 1 October 2001, savings in the Medisave Account will also earn
additional interest of 1.5 percentage points above the CPF interest
rate. This is to help CPF members build up their Medisave savings
faster.
Under the CPF Act, the Board pays a minimum interest of 2.5% per
annum when the CPF interest formula yields a lower rate. CPF
interest is computed monthly and, compounded and credited
annually.
Your second referenced site merely
described the manner in which the CPF payout is delayed till one
reaches 55 years (payout to be completed by age 84 years), and with
the amount held in the Retirement Fund to be increased up to a sum
of $120,000 gradually by the target date 2013.
Any Singaporean that do not has no regular contribution into the
CPF can hardly realise anything close to the required amount for
Medisave, let alone into the Retirement Fund.
Your Retirement Savings And Withdrawals
Your CPF is for your retirement. You can withdraw your CPF savings
when you turn 55, after setting aside your CPF Minimum Sum. Your
CPF Minimum Sum can be used to buy life annuity from a
participating insurance company, placed with a participating bank
or left in your Retirement Account with the CPF Board. From age 62,
you will receive monthly payments from your CPF Minimum Sum to help
meet your basic needs in retirement. If you had bought a life
annuity, you will receive the monthly income for life. If you leave
your CPF Minimum Sum with a participating bank or with CPF Board,
you will receive the monthly income until your CPF Minimum Sum is
exhausted. To stretch the Minimum Sum, you may wish to start your
monthly payouts later. If the payout is deferred by a year, they
will last two more years. For example, if you start your payouts at
age 63 instead of 62, the payouts will last till age 84 instead of
82.
The CPF Minimum Sum is set at $94,600 from 1 July 2006 and will be
raised gradually until it reaches $120,000 (in 2003 dollars) in
2013.
If you meet the CPF Minimum Sum, you will need to set aside a
Medisave Required Amount when you withdraw your CPF. If you have
less than the Medisave Required Amount, you can use your Special
and/or Ordinary Accounts, in excess of the CPF Minimum Sum to set
aside the Medisave Required Amount. This includes the first
withdrawal upon reaching 55 and all subsequent withdrawals.
The Medisave Required Amount is set at $11,500 from 1 January 2007
and will increase by $2,500 (adjusted for inflation) each year
until it reaches $25,000 (in 2003 dollars) on 1 January 2013.
You can also withdraw your CPF savings if you leave Singapore and
West Malaysia permanently or become permanently
incapacitated.
For those reaching 55, you may apply online to withdraw your CPF
using my cpf Online Services - My Request service. Its convenient
and your application can be submitted anytime, anywhere. All you
need is your CPF Account Number and SingPass. Click here to apply
online.
Does the government play fair by
paying 2.5% to the CPF account (4% for the Medisave), and only
paying a full 4% to a Retirement Fund of $120,000 only when we
reach 55 years ?
Does the Government play fair, when they get to use cheap CPF funds
at below market rate, using our money to build infrastructure, and
thereafter charges us atrocious prices for the use of it, and in
the process bloat up the National Reserves.
Wealth is transferred from the Citizens into the Finance Ministry,
and justify the demand for the Cabinet Ministers to be paid million
dollar salaries, while Singaporean Tax Payers face an insecure and
unpredictable future.
