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Old 27-05-2018, 11:06 AM
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Hi,

I learnt something new from you. I am mid-40's and my current SA is $210K.

Based on my estimation, my SA would reach $356K and the ERS would increase to $345K by then.

You mentioned that once RA account is created or SA FRS limit hit, we are not allowed to top up.

That's means I could lock in my RA based on FRS est $230K in year 2027, keep the balance of $126K in SA to continue earning interest. And top up $155K in cash to my RA when I am 55yo to enjoy the CPF Life higher payout? The top up must be at one go at age 55yo or can be spread over years?

Thanks


Quote:
Originally Posted by Unregistered View Post
I will be 58 soon. As far as I can remember, I hit the SA limit when I was 40 yo. With the yearly 4% interest and regular monthly contributions from salary deductions, my SA amount was always above the limit for each new year. There was no way I could top up to my SA from age 40 onwards. Same goes for my MA. Only difference was the excess in MA is transferred to your OA each year.

When I turned 55, they took a sum equivalent to the FRS from my SA to form my RA. Should you not have enough in your SA to form the FRS, they would also take from your OA.

For my case, as my SA amount was always above the yearly limit, I still have quite substantial amount left in my SA after my RA was created with the full amount - FRS. From there I further upped my FRS in my RA to the ERS. And each year, I topped up the RA to the new ERS limit. For this year 2018, the ERS is $256,500. Together with the accumulated interest, my RA now is $280k.

After your RA is created when you turned 55, there is no way to top up your SA. Your SA can still grow from salary contributions or voluntary contributions subject to the yearly limit of $37,740 and according to the allocation to the various CPF accounts. In other words, you cannot transfer money from your OA to your SA when the limit is hit or when your RA is created.

But you can top up your RA.
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