facebookMy parents (age 54/58) used to be self-employed, currently semi-retired. Their CPF OA/SA/RA has only 2-3k inside though their medisave has about 40-50k. What happens to the monies when they reach 65? - Seedly
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Anonymous

07 Jul 2020

My parents (age 54/58) used to be self-employed, currently semi-retired. Their CPF OA/SA/RA has only 2-3k inside though their medisave has about 40-50k. What happens to the monies when they reach 65?

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    What are your thoughts?

    Elijah Lee

    Elijah Lee

    07 Jul 2020

    Level 17ยทIndependent Financial Advisor at Phillip Securities (Jurong East)

    Hi anon,

    Are you referring to the medisave monies? Monies in MA can't be taken out, and will stay in the account, with deductions occuring for eldershield, medishield life and any other medical related costs that are approved for deduction from MA.

    The interest earned is at 4% and any excess interest over the current basic healthcare sum (BHS) of $60K will be credited to the SA instead. Do note that the BHS will be reviewed yearly.

    The first $5K of monies in OA and SA can be taken out after 55. The rest will go to RA, and can't be taken out.โ€‹โ€‹โ€‹

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