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Anonymous

07 Jan 2024

CPF

Will i hit frs when im 55?

HI,

48 years old now

oa-0(fully paid upped hdb flat)

sa- 70k

ma-58k

montly contribution form work

oa- 1197

sa-503

ma -629

Monthly salry is 12,100

take home pay -9,060.42 (the rest goes to some stock thing ),

Should i top up my ma by end of this year to hit 72k bhs so that next year $629 will overflow to my sa and gain more intrest?

I also have a srs account with 10 dollars

Once i hit 55 will i have frs? and if i do how much can i take out above my frs? or i will just be normaland save my money instead of contributing to my cpf

Discussion (6)

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You can use this to calculate yourself - https://valuewarrior.blogspot.com/p/cpf-calcula... - I find this useful la. It depends on what age you want to work to, any bonus, if your salary remains same till your retirement age, deductions from MA etc.
If you want to reduce personal income tax and increase your SA/reach FRS quicker - then you can top up your MA.

Albert Tan

09 Jan 2024

Financial Literacy & Partnerships at MoneyOwl

You should be able to hit FRS (OA+SA) at 55, factoring the increase in CPF OW ceiling next year and the year after up to $8,000. A couple of ways you can further optimise your CPF:

  • Since you have no outstanding mortgage repayments, you can consider doing OASA transfers monthly as your working contributions get credited
  • You should do a VC-MA to $71,500 now to kick start the MA interest overflow to SA *MA and SA gives the same interest

These should help you build up your SA much quicker.

At 55, you will be able to withdraw amounts above your FRS. If you wish to withdraw more, you can use your property to set aside BRS instead and have access to more.

At your current income, I'm quite surprised you haven't put more into SRS for tax reliefs. Can consider SRS contributions to help lower your tax liabilities.

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