When we talk about irreversible OA to SA transfer we mean in case we need the OA for housing before 55 we can't transfer it back. After 55 it doesn't matter anymore since both can withdraw fully.
I thought the same as you initially thinking those who angry are those who are rich and had successfully did the shielding. But there are another group of people may be not as savvy who reached 55yo many years ago, and had accumulated SA thru continue working and contributing CPF SA, the higher interest in SA and the flexibility help them in their saving and flexibility to withdraw money when they need it. Although I understand and also accepted the changes since the logic of high interest for SA is to help people to built their retirement sum, and logically it should be closed when the RA is created.
Because we can only transfer to SA up to FRS, only the interest earned is considered "reversible". The principal sum is still non-reversible. So, if I didn't compute wrongly, it will take 17 years for the interest to accumulate to the principal sum, but then you would only be able to draw out ~21.8% of that, assuming FRS grows at 3.5% a year, and assuming 4% floor ceiling (with bonus 1% for first 40k). To be able to draw out the full principal sum, it will take someone 40 years, i.e. reaching FRS at age 15. So in a sense you are right, it's not entirely irreversible now, but there's a timeline to it. Also, minor correction on your video: it's not 4.08% for year 2024, it's just this quarter. It's expected to drop to 4.05% next quarter.
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When we talk about irreversible OA to SA transfer we mean in case we need the OA for housing before 55 we can't transfer it back. After 55 it doesn't matter anymore since both can withdraw fully.
I thought the same as you initially thinking those who angry are those who are rich and had successfully did the shielding. But there are another group of people may be not as savvy who reached 55yo many years ago, and had accumulated SA thru continue working and contributing CPF SA, the higher interest in SA and the flexibility help them in their saving and flexibility to withdraw money when they need it. Although I understand and also accepted the changes since the logic of high interest for SA is to help people to built their retirement sum, and logically it should be closed when the RA is created.
Because we can only transfer to SA up to FRS, only the interest earned is considered "reversible". The principal sum is still non-reversible. So, if I didn't compute wrongly, it will take 17 years for the interest to accumulate to the principal sum, but then you would only be able to draw out ~21.8% of that, assuming FRS grows at 3.5% a year, and assuming 4% floor ceiling (with bonus 1% for first 40k). To be able to draw out the full principal sum, it will take someone 40 years, i.e. reaching FRS at age 15. So in a sense you are right, it's not entirely irreversible now, but there's a timeline to it.
Also, minor correction on your video: it's not 4.08% for year 2024, it's just this quarter. It's expected to drop to 4.05% next quarter.
Is the payout different for male vs female for the same FRS amount at age 65?
Hi. thanks for video. Does it means whatever left in OA after 55year we can withdraw all?
Well said. 100% agree.
Can use OA for investment via CPFIS after 55? Then dont necessarily need to withdraw. Can earn 2.5% as backup.
I have S$ 60,000 only in my RA account . Next year I will reach 65. How much monthly payout will I get?
There is a calculator in which you can use. If really unsure, book an appt with CPF and officer will show you.
If we already do the SA CPF Shielding by investing thru CPFIS must we close the account before 2025 or we can keep?
why cant they transfer all their OA to SA, (SSB/tbills doesnt pay much if we are to use CPF moneies on it) , to earn more i/r? 4%
After 55, can you still topup OA assuming you have already hit FRS in RA?
After 55, you can top up to Enhanced Retirement Sum
Dun think its consideres reversible? Previously u still can take everythint above SRS out (including funds from SA back then)
At 55 ur FRS would be reached, so would u try to reach the next ERS target or what would u do next
Now can RSTU without worrying about the reserved amount already.
Still can affect you if you're aiming for BHS instead of FRS.
ok not bad. my OA is kosong$, all in SA.. how things will turn out when im 55 i don rly care lol...
Oh no ! looks like I have to work for a few more years 😢
In Singapore don't n can't plan as government policy will keep changing to make local life tougher to make ends meet
Go retire in Malaysia la your favourite right 😂😂😂
For us mere mortals, it is irreversible. But for Thanos, he can reverse it with a snap of the finger!