Asked 5d ago
Assuming I have reached FRS at 55 years old, a RA is formed.
Assuming I still have balance funds in my OA and SA after RA.
1) I am able to withdraw any of the funds in OA and SA, yes?
2) if this is the case, should I not transfer funds in OA to SA, so that I can earn the additional interest in SA?
3) I should not transfer funds into RA if I need to stick to FRS scheme and I won’t be able to withdraw the funds in RA till 65 years old. Am I right?
1) Yes. The order is SA first and then OA.
2) You cannot transfer OA monies to SA after 55
3) You can leave money in SA to compound after 55, so that you retain flexibility to transfer to RA later if you really wish to, and yet still get a decent 4% interest
1) yes, there's some order of funds being withdrawn. Think is SA interest, OA interest, SA then OA.
2) I think above 55, one can only transfer funds from OA to RA to form ERS. Hence, why people suggest to do SA shielding before turning 55, so funds in RA will be formed by funds in OA first.
3) not sure about withdrawing from RA.. Think there's a cap of 20%