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2/1/2018
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1Information is correct as at 8 Jan 2018
2
INSTITUTE FOR FINANCIAL LITERACY
A collaboration between MoneySENSE, the national financial education
programme, and Singapore Polytechnic
We conduct free and unbiased financial talks/workshops at workplace and
public venues
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Full Term Acronym Full Term Acronym
Ordinary Account OARetirement Sum Topping-Up
RSTU
Special Account SA Voluntary Contribution VC
Medisave Account MA CPF Lifelong Income For the Elderly CPF LIFE
Retirement Account RA Retirement Sum Scheme RSS
Basic Retirement Sum BRS Payout eligibility age PEA
Full Retirement Sum FRS Payout start age PSA
Enhanced RetirementSum
ERS CPF Investment Scheme CPFIS
Basic Healthcare Sum BHSLifetime Retirement Investment Scheme
LRIS
Glossary
#1 How does CPF prepares
you for retirement?
#2 How much do you want your pay
cheque to be?
#3 A cheque book that never stops
paying
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Healthcare needs
Home ownership
Retirement income
Copyright © 2017 Central Provident Fund Board. All rights reserved. Reproduction without prior written consent by Central Provident Fund Board is strictly prohibited. Information is accurate as at January 2017.
HOW TO BE
READY
Copyright © 2017 Central Provident Fund Board. All rights reserved. Reproduction without prior written consent by Central Provident Fund Board is strictly prohibited. Information is accurate as at January 2017.
2/1/2018
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Preparing You for RetirementAccumulate CPF
contributions as you work
Self Employer
1
Earn risk-free interest on your CPF savings2Over time, your CPF savings will grow with the power of compound interest
3
Join CPF LIFE to receive monthly payouts for as long
as you live
4
Based on salary ceiling of $6,000. If you decide to continue working after 55 years old, your CPF contributions will still be allocated into OSMA.
CPF Contribution Rates
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CPF Accounts Ordinary Account
(OA)Up to
3.5% p.a.Primarily
for housing needs
Special Account
(SA)Up to
5% p.a.For our
retirement needs
Medisave Account
(MA)Up to
5% p.a.For our medical needs
Retirement Account (RA)
Up to 5% p.a.Provides
retirement payouts
Your OA savings earn interest rates of 2.5% per year. Your SA and MA savings earn interest rates of 4% per year.An extra interest of 1% is paid on the first $60,000 of your combined balances, of which up to $20,000 comes from the OA.
OA*(up to first $20,000)
SA MA
Up to 5%
Balance Savings
*The additional extra interest of 1% and extra interest of 1% earned on OA savings will be credited into the Special Account/ Retirement Account (depending on the member’s age).
(for those aged below 55)First $60,000
SMA: 4%OA: 2.5%
CPF Interest Rates
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RAOA*
(up to first $20,000)
SA MA
Up to 5% Next $30,000
SMRA: 4%OA: 2.5% Balance Savings
*The additional extra interest of 1% and extra interest of 1% earned on OA savings will be credited into the Special Account/ Retirement Account (depending on the member’s age).
Up to 6% First $30,000(for those aged 55 and above)
CPF Interest Rates
Power of Compound Interest
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#2
Copyright © 2017 Central Provident Fund Board. All rights reserved. Reproduction without prior written consent by Central Provident Fund Board is strictly prohibited. Information is accurate as at January 2017.
How much do you want your pay cheque to be?
How much do you need per month in retirement?
CPF LIFE PayoutsCPF LIFE Payouts
When do you want to retire? How long do you want the
payout to last?What is the interest rate on my
savings/investment? How much is the payout?
Payouts start from age 65 Payouts last for life Up to 6% per year $120,000 at age 55 to get
~$1,000 per month for life
Cash sourcesCash sources
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Your Retirement Account
Retirement AccountOrdinary &
Special Accounts
First $5k*
Savings up to FRS**
Excess Savings
**Full Retirement Sum ($171,000 for members turning 55 in 2018).
*Excludes top-up monies, interest earned, and any government grants received.
Your Monthly Retirement Payout
55 years old 65 years old
Monthly CPF LIFE Payout
Retirement Account
Savings up to FRS*
*Full Retirement Sum ($171,000 for members turning 55 in 2018).
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Your Monthly Retirement Payout
55 years old 65 years old
$85,500 (Basic Retirement Sum)
$720 - $770* (with property)
$1,320 - $1,410*
$1,910 - $2,060*
$171,000 (Full Retirement Sum)
$256,500 (Enhanced Retirement Sum)
Retirement Account Savings: Monthly CPF LIFE Payout:
x2 of BRS x3 of BRS
*Based on CPF LIFE Standard Plan payouts computed as of 2018.
Your Monthly Retirement Payout
55 years old 65 years old
$85,500 (Basic Retirement Sum)$720 - $770* (with
property)
$1,320 - $1,410*
$1,910 - $2,060*
$171,000 (Full Retirement Sum)
$256,500 (Enhanced Retirement Sum)
Retirement Account Savings: Monthly CPF LIFE Payout:
$120,000 $960 - $1,030*
Set aside the BRS* to
withdraw more savings
(lower payouts)
# Based on CPF LIFE Standard Plan payouts computed as of 2018.
* Exclude top-up monies, interest earned in RA and any government grants received.
Top up for higher payouts
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When do you need to pledge your property?Withdraw your desired amount of savings above BRS from Retirement Account (lower retirement payouts)
$120,000If no withdrawal above BRS was
made
$960 – $1,030#
$720 – $770#
BRS of $85,500If a withdrawal
above BRS was made
Withdraw $34,500*
Note: Pledging will not affect property ownership.
Principal + Interest (P+I)
FRS of $171,000
(if no property)
No pledge
required
# Based on CPF LIFE Standard Plan payouts computed as of 2018.* Exclude top-up monies, interest earned in RA and any government grants received.
When do you need to pledge your property?Withdraw your desired amount of savings above BRS from Retirement Account (lower retirement payouts)
$120,000If no withdrawal above BRS was
made
$960 – $1,030#
$720 – $770#
BRS of $85,500If a withdrawal
above BRS was made
Withdraw $34,500*
Property Pledge
Principal + Interest (P+I)Note: Pledging will not affect
property ownership.
FRS of $171,000
(if no property)
# Based on CPF LIFE Standard Plan payouts computed as of 2018.
* Exclude top-up monies, interest earned in RA and any government grants received.
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If you had used your
CPF to buy a
property
Refund:
• property charge
(principal amount
withdrawn for the property plus accrued
interest)
• pledge amount (if any)
Used to help you set aside your FRS
in the Retirement
Account
Balance of the
housing refunds will be paid to
you
Note: If your proceeds are insufficient to make up the amount you have withdrawn, the accrued interest and pledge amount (if any), you do not have to refund the difference in cash.
Can subsequently use Ordinary Account savings and Retirement Account savings (excludes top-up monies, interest earned and any government grants received) above BRS to finance next property purchase.
Copyright © 2017 Central Provident Fund Board. All rights reserved. Reproduction without prior written consent by Central Provident Fund Board is strictly prohibited. Information is accurate as at January 2017.
Sale of Property after 55
Know Your Options Ahead of Time
*Based on CPF LIFE Standard Plan payouts computed as of 2018.
Full Retirement Sum (FRS)
Enhanced Retirement Sum (ERS)
Basic Retirement Sum (BRS)
$80,500 $83,000 $85,500 $88,000 $90,500
$161,000 $166,000 $171,000 $176,000 $181,000
$241,500 $249,000 $256,500 $264,000 $271,500
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Born on or after
55th birthdayon or after
Age in 2017
Basic Retirement Sum (with property)
Full Retirement Sum
1 Jul 1948 1 Jul 2003 70 $40,000 $80,0001 Jul 1949 1 Jul 2004 69 $42,250 $84,5001 Jul 1950 1 Jul 2005 68 $45,000 $90,0001 Jul 1951 1 Jul 2006 67 $47,300 $94,6001 Jul 1952 1 Jul 2007 66 $49,800 $99,6001 Jul 1953 1 Jul 2008 65 $53,000 $106,0001 Jul 1954 1 Jul 2009 64 $58,500 $117,0001 Jul 1955 1 Jul 2010 63 $61,500 $123,0001 Jul 1956 1 Jul 2011 62 $65,500 $131,0001 Jul 1957 1 Jul 2012 61 $69,500 $139,0001 Jul 1958 1 Jul 2013 60 $74,000 $148,0001 Jul 1959 1 Jul 2014 59 $77,500 $155,0001 Jul 1960 1 Jul 2015 57 or 58 $80,500 $161,0001 Jan 1962 1 Jan 2017 56 $83,000 $166,0001 Jan 1963 1 Jan 2018 55 $85,500 $171,000
What are the Applicable Retirement Sums?
Topping-Up Options
You
Loved Ones#CPF Transfer
**Excludes any top-up monies, interest earned, and government grants.#Loved ones include your parents, parents-in-law, grandparents, grandparents-in-law, and siblings
CPF Transfer (savings above BRS)**
Spouse
CPF Transfer (savings above FRS)**
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New! CPF Transfers to Parents and
Grandparents
Giver age below 55 Giver age 55 and above*Current*Net OA savings above
current FRS
*New*Net OA
savings above current BRS(If OA+ SA+
property charge more than
current FRS)
*Current*Net OA savingsabove
cohort FRS
*New*Net OA, SA, RA savings above
cohort BRS(If OA+ SA+ RA+
property charge/pledge
more than cohort FRS
From Q4 2018, members can transfer savings above BRS (previously FRS) with sufficient property charge/pledge to their parents and/or grandparents to boost their retirement savings.
Topping-Up Options
You
Loved Ones#
*Cash top-ups within the current FRS are eligible for up to $7,000 of tax relief.#Loved ones include your parents, parents-in-law, grandparents, grandparents-in-law, and siblings.
SpouseCash Top-up
to SA/RA*
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Top-up Monies are Meant for Retirement
Top-up monies are set aside specifically for retirement income needs.
Will be used to increase the recipient's payout level and/or payout duration.
Cannot be used for other purposes such as education, investment, insurance premium payments, housing, withdrawn via a property with sufficient CPF property charge or pledge, CPF transfers, and/or exemption.
How do I make a top-up?CPF Transfers Cash Top-ups
CPF Website using SingPass
Hardcopy Form
AXS
E-Cashier
For more info:cpf.gov.sg/Members/Schemes/schemes/retirement/retirement-sum-topping-up-scheme
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#3A pay cheque that never
stops paying
Copyright © 2017 Central Provident Fund Board. All rights reserved. Reproduction without prior written consent by Central Provident Fund Board is strictly prohibited. Information is accurate as at January 2017.
CPF LIFE
Year of birth Payout eligibility age (PEA)
1943 and before 60
1944 to 1949 62
1950 to 1951 63
1952 to 1953 64
1954 and after 65
An annuity that will povide a monthly payout from your payout start age, for as long as you live. You can choose to start your payoutfrom your payout eligibility age.
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55 years old 65 years old 70 years old
Automatically placed on CPF LIFE
Standard Plan if you do not choose one
Lifelong monthly payouts
Set aside your
retirement sum
Placed on CPF LIFE 6 months
before, if you have $60,000
in Retirement Account*
For CPF members reaching 55 from 1May 2016 onwards
Choose your CPF LIFE plan only
when you want to start your payouts
*If you are not placed on CPF LIFE, you can apply to join anytime between your payout eligibility age and before you turn 80 years old, or remain on the Retirement Sum Scheme.
Who will be placed on CPF LIFE?
CPF LIFE Plans
*As with all CPF LIFE plans, payouts may be adjusted to account for long-term changes in interest rates or life expectancy. Such adjustments (if any) are expected to be small and gradual.
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Calculate your LIFE payout and bequest
using the CPF LIFE Payout Estimator
Click on Tools
2
Click on CPF LIFE Payout Estimator
3
Visit www.cpf.gov.sg
1
Calculate your LIFE payout and bequest
using the CPF LIFE Payout Estimator
Read the disclaimer and check the disclaimer box
4
Input informationClick “Next”
5
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Calculate your LIFE payout and bequest
using the CPF LIFE Payout Estimator
Input your desired payout start age and Click “Compute”
6
Option for Higher Payouts
65 70
$1,410* per month
$1,880* per
month
For each year deferred, your CPF LIFE monthly payouts will increase up to 7%.
*Based on CPF LIFE Standard Plan payouts of a male member computed as of 2018.
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20% Lump Sum Withdrawal at Age 65• This option is not available for older members because they
had more liberal withdrawal rules.
Members whoturned 55 in
% of combined savings in the Ordinary and Special Accounts that could be withdrawn
2008 and before 50%
2009 40%
2010 30%
2011 20%
2012 10%
2013 onwards 0%
Copyright © 2017 Central Provident Fund Board. All rights reserved. Reproduction without prior written consent by Central Provident Fund Board is strictly prohibited. Information is accurate as at January 2017.
Greater flexibility, more options
You have the option to start your CPF LIFE payout later, up to 70 years old.
For members who turn 55 from 2013, you may withdraw up to
20% of your Retirement
Account savings
3 CPF LIFE plans to choose from when you want to start your payout
Copyright © 2017 Central Provident Fund Board. All rights reserved. Reproduction without prior written consent by Central Provident Fund Board is strictly prohibited. Information is accurate as at January 2017.
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Distributed to nomineesIf no CPF Nomination was made, the CPF savings will be forwarded
to the Public Trustee for distribution based on Intestacy Law or Muslim Certificate of Inheritance. Admin fee applies.
Discounted SingTel shares
Unused annuity
premium
Balances from OA, SA, MA,
RA
CPF Nomination
How to Make a CPF Nomination
CPF savings are not covered by a Will. They are protected from creditors to ensure that members’ dependants receive the savings promptly.
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1. The Retirement Account is created at age ____________.
2. The first ____________ of your combined CPF balances will be paid an extra 1% interest.
3. The additional extra interest of 1% earned on OA savings will be credited into the ____________________________________.
4. Cash top-ups into loved ones’ SA within the current FRS are eligible for up to _________________ of tax relief.
5. Monthly payout will increase by up to __________if member defer their CPF LIFE payout till age 70.
6. Members who buy a property after 55 can still use _________________ savings above BRS to finance the property purchase.
1, 2, 3s of CPF Recap
https://youtu.be/wOSdtjSs-UE
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For More Information
Refer online at
•http://www.cpf.gov.sg
Call
•1800-227-1188
Copyright © 2017 Central Provident Fund Board. All rights reserved. Reproduction without prior written consent by Central Provident Fund Board is strictly prohibited. Information is accurate as at January 2017.