Reader:
Need your advise, my SA is able to meet the MS (FRS), was thinking of opting for the enhanced option (ERS) for CPF life at 55 which is next year.
There after, at age 65 think of pledging my HDB for the 85K to get back the money. In that way, i am able to earn the 4% interest for the $85K for 10 years, your kind advise please thanks.
AK:
You have to decide at 55 if you want BRS, FRS or ERS. You cannot change your mind at age 65.
Reader:
In a way i am not, but getting back the money of $85K at 65 after pledging. thanks.
AK:
The transfer to the CPF-RA is irreversible. So, think carefully what you want.
The money in the CPF-RA will fund CPF Life which will give you a monthly income for life. You won't be allowed a lump sum withdrawal from the CPF-RA......
I’m 62 and have not exercised to be on CPF Life but has an option to do it at 65.
Some years before 55, I learnt that CPF will restrict us on its use come 55. What I did was, buy a private property for investment partly from my CPF OA. This property is still with me and generating rental income. Recently, this property was sold enbloc, haha…not of my volition. So in preparation, I enquired CPF.
My CPF money is still with CPF RA/SA/OA( no need to mention MA). It has not gone into Lifelong Annuity until we opt for it. After the pledged property is sold, all CPF monies used including all the accrued interest would have to be returned. After returning, within a week, all excess money above MY FRS ( emphasis: my time FRS, $159k)will be returned to me in cash. As cash, I can top-up my account, spouse or love ones.
Those born on 1958 and thereafter will not have this choice, on 55 their RA( from OA and SA)money will go into Annuity Fund for it to build up ten years. From CPF QnA, after the funds has gone in to Annuity, RA account still operates albeit initially zero as it has cleared out to Annuity. It will continue to receive monies from those sold their pledged house after 55, and whatever. The other accounts of OA, SA and MA also continue.
I will be turning 65 next month, can I transfer money from OA to SA and RA now