AskGuru Q&A Community

Hi,

Upon age 55, cpf will combine your OA and SA and shift the total amount into a new account called the Retirement Account RA. If your turn 55 this year, and the property can last you until 95 years old, you will need to set aside at least $96,000 for the basic retirement sum.

If you wish to use part of the CPF OA before the CPF RA is formed at 55 years old, you need to apply online at CPF website for the approval and they will assess on case by case basis. Do note, once you start receiving our monthly payouts under CPF Life or the Retirement Sum Scheme (at 65 unless you choose to defer it), your reserved OA savings will be transferred to your RA if you have not met the Full Retirement Sum by then.

It is advisable to pay finish the home loan before 65 years, or perhaps consider to right-size to another lower priced unit.

Hope the above clarifies. May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,

Ivan Ng Realtor
ERA Senior Marketing Director
ERA Diamond Achiever

ERA Top 11 Achiever in June 2020 (Top 1% Company Level)
ERA Top 91 Achiever in 2nd Quarter 2020 (Top 2% Company Level)
ERA Top 15 Achiever in April 2019 (Top 1% Company Level)
ERA Top 86 Achiever in Sept 2019 (Top 2% Company Level)
ERA Top 510 Achiever in Year 2019 (Top 8% Company Level)

SMU BBM (Finance), Magna Cum Laude
Proactive. Sincerity. Feedback.

Contact: (+65) 97432395 
Email: Ivanng10@gmail.com
IG: instagram.com/ivanngrealtor
WeChat: ivanng10
FB: fb.com/IvanNgRealtor
W: ivanng10.com/clientreviews
(Client's Testimonials)
CEA: R052114D

**Note: We are not prompted when you respond here, hence please get in touch directly. Look forward to hear from you soon! **

-- EC Sellers, Private Property Buyers Dr. Chan & Ms. Xie --

I would like to compliment Mr Ivan Ng for his professional work and effort.I sent my first post in Jan 2019 and Ivan replied promptly, so I have decided to contact Ivan for follow up. My EC was not ready for sale due to MOP (another 3 months from Jan) at that time and Ivan was able to give me advices on how to proceed from there. Initially we have decided to try to write to HDB for early sale but since it was only 3 months left, eventually we waited for another 3 months while we looked for our next property. Ivan was able to arrange for new property showroom appointment at a timely manner while helping us to list for our EC for sale. We were a bit worried when our EC sale time was longer than expected due to trade war, but Ivan was able to reassure us that our EC would sell. By November, he managed to secure a buyer for our EC. Thank you.

-- HDB Yishun BTO 5-RM Sellers, Private Property Upgraders Mr. & Mrs. Koh --

I would like to express my appreciation to Ivan Ng for his excellent work. Ivan is a dedicated, client-focused, patient and sincere agent. Throughout the whole process of selling and looking for our next property, he has always acted very professionally that makes my wife and I feel at ease and assured. Ivan is not a pushy and hard sales agent. Ivan listens and understands our needs and carefully guided us through. We are fortunate to have Ivan as our agent. Thank you Ivan. Read More

Hi,

1) The answer is yes. You can request certain funds to be kept under your OA for your mortgage payment.
2) Due to limited info, it is difficult to understand how much funds you are having now to provide better advice.
3) To better understand how your funds will be allocated. It is best that you understand what will happen when you reached 55.
4) There will be an additional account created upon reaching 55 yrs old, which makes up 4 accounts; OA, SA, MA & RA.
5) CPF board will write to you on what you intend to do with your funds in SA & OA.
6) I would strongly suggest you go down to the CPF board personally to ask all your questions and decide how to allocate your funds.
7) The situation shall be all funds in SA & OA will be transferred to the RA.
8) If you have FRS ($192,000 in 2022) in your SA. Then your funds in OA will not be touched. You may continue to go as per normal.
9) If you do not have sufficient funds in your SA to meet FRS, then your OA fund will be used to top up. Any excess will be left in OA.
10) If after utilizing all funds in SA & OA still cannot meet FRS. All funds in SA & OA will be left in your RA for your retirement.
11) If you own a residential property such as an HDB flat. You may request only to top up only till BRS ($96,000 in 2022). And leave the excess in your OA for your mortgage.
12) If you own a residential property such as an HDB flat. And the funds from SA & OA are unable to meet BRS. The CPF Board will wish to retain at least $60k in your RA, and you may use the excess for your mortgage.
13) If you own a residential property such as an HDB flat. And the funds from SA & OA are unable to meet BRS. You still cannot retain a minimum of $60k from your SA. You will have to appeal to keep all funds in your OA for your mortgage.
14) More doubts on the RA, you may write into the CPF by logging using your Singpass and drop them a mail, cpf.gov.sg.

Hope the above answer your main concerns, but if there are more query, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

Note:
Any response to our answer does not reach us.
The best way to get a follow-up is to Whatsapp or email us directly. Read More