Apologies for the long hiatus. It has been 5 months since my last post as I have been busy with the renovation of my new house as well as new responsibilities at work. Lets hope I get to find more time to post moving forward.
Back to the post. My mother is turning 70 years old next month and she will have to start receiving her CPF payout. If you had read my previous post, you would have known that I have been diligently helping my mother top up her CPF RA account using both cash and my OA. You can read about her CPF progression here.
It has been 5 years since I first started topping up her CPF account. As of this month, she has 76k in her RA account. I have decided to opt her into CPF LIFE Basic and she will be getting approximately $450 monthly payout for life! This is in comparison with around $250 for around 10 years if I didn't help her optimized her Retirement Account. You can read more on my consideration for letting her stay in the old Retirement Sum Scheme vs going for CPF LIFE basic.
The monthly payout is not a lot but it sure is enough to help reduce the monthly cash that I have to come up with while at the same time providing her with a higher monthly allowance. The “advanced allowance” that I contributed to her CPF account is paying off now and it couldn’t have come at a better time since I just recently purchased a new property and the extra monthly cash would surely come in handy.
Looking back, I wish I had started to accumulate money in her RA account way earlier and the “fruit” will be way juicier today. But as the saying goes, the best time to take advantage of the CPF system is yesterday and the 2nd best time is NOW.
Thanks for staying till the end and do support me at my Referral and Store Pages. Appreciate your support. Happy CPFing!
Reviewed by Valuewarrior
on
October 14, 2021
Rating:
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Nice bro. After my top-ups to her (almost empty) RA account, my mum is also collecting a little over $400 monthly. A nice steady sum ;)
ReplyDeleteNice work too. How long did you take to build up her RA? Will you be continuing to top up her RA?
DeleteIf it's to maximise your mom's current payouts, can consider Standard Plan. Especially if she's in good health & no family history of critical illness.
ReplyDeleteForget about the residual amount to beneficiaries.
We are looking to maximize what we can squeeze out from CPF... hahaha..
DeleteFor my mom's monthly allowance, we are still giving her cash to supplement the CPF payout. So we can adjust the cash portion where necessary especially when her monthly payout gets progressively lower when CPF balances fall below $60,000 for the basic plan.
Hi, anyway I can know if my parents are under the RSS or CPF LIFE Scheme? They are both age 59 this year.
ReplyDeleteIf your mom is born in 1957 or earlier, she can log in with her SingPass to view her RSS monthly payout. Since she is 59 this year. She is likely under CPF LIFE.
DeleteIf she is born in or after 1958, she may be on CPF LIFE*. She can use the CPF LIFE estimator to estimate her LIFE monthly payouts.
*She will be automatically covered under CPF LIFE if she is a Singapore Citizen or Permanent Resident born on 1 January 1958 and after, and have at least $60,000 in her RA six months before she reach age 65.