More on CPF!

Strangely enough, after my previous post on CPF LIFE,  I had lots of conversation with my friends, colleagues and even my future mum-in-law on the making of CPF and CPF LIFE. So as part of my own archive (since my page view is so low), I will put down some more links here for posterity's sake.

• All about CPF.  While this link brings you to a page that is titled "Other CPF Schemes and Services", in my view this is a one-stop shop that contains all the links to important websites such CPF LIFE, Minimum Sum Scheme , Supplementary Retirement Scheme, Investment Schemes and even what happens to your CPF monies when you are due to see the maker! I would recommend anyone to start from this page and keep revisiting it until you finish navigating through the labyrinth of cpf.gov.sg

• Minimum Sum Scheme.  Before you embark on CPF LIFE, you definitely need to understand the Minimum Sum Scheme as it forms the basis of how CPF LIFE operates. It also determines how much you can withdraw upon reaching 55 years old. A few important points which many may not be aware of:
• You can only withdraw the remaining monies in your OA and SA after setting aside sufficient monies for the CPF Minimum Sum and Medisave Minimum Sum. 
• When you reach 55 years old, the monies in your SA will be transferred to your RA first. If not not meeting the CPF Minimum Sum, your OA will then top it up. If you have excess monies in your Medisave (above the Medisave Minimum Sum), it can contribute to the CPF Minimum Sum too.

*At the point of writing, the CPF Minimum Sum is $155,000 while the Medisave Minimum Sum is $43,500.

• FAQ.  Of course, no good website is complete without a solid FAQ, and I am happy to announce that the CPF website has quite a comprehensive and detailed FAQ. Inside contains a lot of "gems". One of them is the maximum top-up for the CPF Minimum Sum. It is essentially the difference between the current CPF Minimum Sum and the recipient's SA balance. Below is a good infographic.

Fun Fact: Do you know that you can top-up others' CPF to help them reach their CPF Minimum Sum? 

There are two types of top-up. (1) with Cash and (2) with your OA monies. While you can use cash to top-up for almost anyone, you can use your OA monies only to top-up for your immediate family members. Interestingly, you cannot top-up for your child with your OA monies! Well, I guess it is well-intended since your child has a longer timeline to reach the CPF Minimum Sum than you. Earn your own keep, my young Padawan!

While CPF is a complex matter, we should spend some time studying it and tease out the essence for our retirement's sake! Oh well, tomorrow is Monday! Time to earn some money for my CPF!