After my post in April 2019 about hitting the annual Basic Healthcare Sum target, the engines of wealth have been chugging along nicely in Q2. I’m still on target to hit my goal of reaching the CPF Full Retirement Sum 2019 (FRS) of $176,000 with the current amount at the 86% mark of $152,000.

Comparing against the chart above, I have made progress of around $12,000 this year. Looks like it is 1/3 down, and another 2/3 to go? In a previous blog post, I wrote about having the option of transferring out my own CPF money to my parents’ accounts.

To explore this possibility, I wrote to CPF board and asked them to perform projections for three different options – topping up my mum’s CPF Retirement Account (CPF-RA) with either:

  1. $30,000
  2. $60,000
  3. $90,000

The source of input funds would either be cash or my CPF-OA. To re-cap, this is my mum’s profile that I have shared in a blog post early this year:

  • CPF scheme = Retirement Sum Scheme (RSS) // Not CPF Life
  • birth year = 1948
  • current age = 71 (year 2019)
  • payout eligibility age = 62 (year 2010)
  • ‘end’ payout age = payout eligibility age + 20 = 82 (year 2030)
  • number of years until ‘end’ of payout = 11

Below is their reply. I had deleted away all personal information.

I had a rough idea of what to expect but nothing beats an official answer right? I don’t like to talk about problems. I get on with it and play within the rules.

In case you didn’t know, it is very easy to ask CPF board if you have questions. In the CPF Homepage, you can click on My Mailbox to send an enquiry. An answer will follow in a few working days. (This is not a sponsored post HAHA)

Do note that certain specific questions would have confidential answers and you won’t be able to get it via the CPF homepage. For the projections that I requested, a written letter sent to my mum is the only way it can be done.

After reading the letter, I made a little table for comparison. The rows in green are given by CPF board and projected as such because it is tailored to my mum’s profile.

I wasn’t too sure about their reply with regards to topping up $30,000. It was projected to last 17 years which was a little odd. The letter did mention terms and conditions so there may be factors I’m not aware of.

If I had to guess-timate the calculations a little bit, it would probably be able to sustain a payout of about $355 for 11 years.

My mid-term plan for supporting my parents’ retirement is definitely going to be a mixture of cash allowance from me and payouts from CPF.

To circle back to what I wrote at the start of this post, the whole idea is that since my CPF numbers are close to reaching Full Retirement Sum, I have the increased flexibility to allocate a portion of them.

The things we do and work so hard for? Sometimes, there are very good reasons for them.

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