SG Talk

How retiree in Singapore saved over $1.6m in her CPF

67-year-old wants to encourage younger Singaporeans to be like her and similarly plan early for the same outcome.

People who have contributed to their CPF since they were young can achieve about $700,000 in their Ordinary Account when they are in their early 50s.
People who have contributed to their CPF since they were young can achieve about $700,000 in their Ordinary Account when they are in their early 50s.

A 67-year-old retiree holds a record of sorts that most of us would yearn for - she has more than $1.2 million in her Ordinary Account (OA) of the Central Provident Fund (CPF).

If that's not impressive enough, she has another $400,000 in her Retirement Account and over $50,000 in her MediSave account.

https://www.straitstimes.com/business/in...in-her-cpf

The first rule is one need to have a good paying job. If they know investing and take some risk maybe not putting in CPF is a better option.

(25-07-2021, 08:31 AM)Sharexchange Wrote: [ -> ]The first rule is one need to have a good paying job. If they know investing and take some risk maybe not putting in CPF is a better option.

Yes, that is very true.  Because more funds will overflow to your OA when your Medisave is FULL

And start young.

Anyone done CPF housing refund with Cash to reduce the accured interest and to build up the OA amount ?

(25-07-2021, 08:45 AM)SgWinner Wrote: [ -> ]Anyone done CPF housing refund with Cash to reduce the accured interest and to build up the OA amount ?

Yes

(25-07-2021, 08:45 AM)SgWinner Wrote: [ -> ]Anyone done CPF housing refund with Cash to reduce the accured interest and to build up the OA amount ?

accured interest is not a problem at all because it is still your money.  you paid to yourself.

if you are about 50 year old, and you have spare cash, it is good to do the refund.

(25-07-2021, 08:31 AM)Sharexchange Wrote: [ -> ]The first rule is one need to have a good paying job. If they know investing and take some risk maybe not putting in CPF is a better option.

CPF has a contribution cap on income up to $6K.

you just need a job that pays $6K and above and no retrenchment in your work life.

Since her past job was not revealed, she was likely to work in the public service.

CPF rich, cash poor 

(25-07-2021, 08:48 AM)p1acebo Wrote: [ -> ]

(25-07-2021, 08:45 AM)SgWinner Wrote: [ -> ]Anyone done CPF housing refund with Cash to reduce the accured interest and to build up the OA amount ?

Yes

When you do this it is not counted towards annual top up limits?

Stories about millions in CPF are getting stale.

There are also many more people also saving hard and have millions in stock or reits portfolio.

(25-07-2021, 11:15 AM)starbugs Wrote: [ -> ]Stories about millions in CPF are getting stale.

There are also many more people also saving hard and have millions in stock or reits portfolio.

Yeah and they can use it anytime unconditionally 

(25-07-2021, 11:13 AM)sgbuffett Wrote: [ -> ]

(25-07-2021, 08:48 AM)p1acebo Wrote: [ -> ]Yes

When you do this it is not counted towards annual top up limits?

no, the limit is the loan amount.

so you can do a $1m refund if you have a $1m cpf loan

(25-07-2021, 08:45 AM)SgWinner Wrote: [ -> ]Anyone done CPF housing refund with Cash to reduce the accured interest and to build up the OA amount ?

(25-07-2021, 11:29 AM)drgn Wrote: [ -> ]

(25-07-2021, 11:13 AM)sgbuffett Wrote: [ -> ]When you do this it is not counted towards annual top up limits?

no, the limit is the loan amount.

so you can do a $1m refund if you have a $1m cpf loan

What is consequences or not paying this "loan"?

I see it as a way to detain funds from sales of HDB back in CPF.

Suppose one already has $600K in CPF then sell property and get $500k if loan is $200K ...200K returns to CPF as if person never take out CPF.

By right person with $600K already meet the min sum etc.

All these rules just end up locking up more and more into CPF.  All these resources locked is not the best way to manage people's resource.

If person has more than X$ in CPF let's fix X$ at 750k...he should be exempt from all rules to keep adding to CPF...once he agrees to put it in the special account.

It's not a good thing to lock up so much funds and create an economy of super high savers ....look at Japan the whole economy declined as the nation became a nation of savers

(25-07-2021, 11:13 AM)sgbuffett Wrote: [ -> ]

(25-07-2021, 08:48 AM)p1acebo Wrote: [ -> ]Yes

When you do this it is not counted towards annual top up limits?

No it is not counted.  You utang them mah.

(25-07-2021, 11:39 AM)sgbuffett Wrote: [ -> ]

(25-07-2021, 08:45 AM)SgWinner Wrote: [ -> ]Anyone done CPF housing refund with Cash to reduce the accured interest and to build up the OA amount ?

(25-07-2021, 11:29 AM)drgn Wrote: [ -> ]no, the limit is the loan amount.

so you can do a $1m refund if you have a $1m cpf loan

What is consequences or not paying this "loan"?

I see it as a way to detain funds from sales of HDB back in CPF.

Suppose one already has $600K in CPF then sell property and get $500k if loan is $200K ...200K returns to CPF as if person never take out CPF.

By right person with $600K already meet the min sum etc.

All these rules just end up locking up more and more into CPF.  All these resources locked is not the best way to manage people's resource.

If person has more than X$ in CPF let's fix X$ at 750k...he should be exempt from all rules to keep adding to CPF...once he agrees to put it in the special account.

It's not a good thing to lock up so much funds and create an economy of super high savers ....look at Japan the whole economy declined as the nation became a nation of savers

don't confuse the refund with selling of properties.

cpf refund refers to putting a big amount of cash into the cpf account, to offset the cpf housing loan.  Don't have to sell the house when doing this.

it is good for those near retiring age, having a pile of cash but don't know where to invest to get 2.5% interest.

Instead of paying accured interest with 2.5% from "own pocket", good to consider doing the CPF housing refund to OA if have surplus idling cash as to let CPF pay you the 2.5% instead

1.6 million still not hers until she spend it lah hiaz

Try to grow your CPF and hit min sum by age 55 so that can withdraw the excess and wisely use between age 55 to age 65 for the 10 years period

she is selfish like Jac

she sees money as God
rather than a mean to help others
Just a Jac
just junk in society
not worthy of news

if they are civil servants

then they are taking from 90% singaporean to pay themselves for rewards for work they did not do though seem doing

(25-07-2021, 08:31 AM)Sharexchange Wrote: [ -> ]The first rule is one need to have a good paying job. If they know investing and take some risk maybe not putting in CPF is a better option.

Investing in stocks and shares is not a sure win situation, cos 95% of those who invest in stocks and shares tend to lose money, only 5% of investors can make money....

(25-07-2021, 12:54 PM)Fleetdestroyer Wrote: [ -> ]1.6 million still not hers until she spend it lah hiaz

Exactly .... the money is not yours until you spend it. CPF holders are worst ..... wanna use also cannot ... how that constitute as yours 

(25-07-2021, 09:30 AM)drgn Wrote: [ -> ]

(25-07-2021, 08:45 AM)SgWinner Wrote: [ -> ]Anyone done CPF housing refund with Cash to reduce the accured interest and to build up the OA amount ?

accured interest is not a problem at all because it is still your money.  you paid to yourself.

if you are about 50 year old, and you have spare cash, it is good to do the refund.

yalor.. now FD only 0.5% or so?  got spare cash refund cpf better.

(26-07-2021, 10:01 AM)Tangsen Wrote: [ -> ]

(25-07-2021, 12:54 PM)Fleetdestroyer Wrote: [ -> ]1.6 million still not hers until she spend it lah hiaz

Exactly .... the money is not yours until you spend it. CPF holders are worst ..... wanna use also cannot ... how that constitute as yours 

money not spent is not yours.

money spent become others.

u never really own any money..

lol