Minimum Sum Scheme (MSS) replaced by Basic Retirement Sum
Yearly contribution of $37,740yearly limit is from when to when? 1 Jan to 31 Dec
This maximum yearly Voluntary contributionn to 3 accounts (based on allocation ratio or percentage) can have Tax Relief for Self employed or employees (Look at the Income Tax Rate Table to avoid On The Next).
For Self employed, up to a total of maximum $80,000
For Employees, up to a total of $14,000 ($7,000 top up to own CPF account and $7,000 top up to love ones family members account)
For Self Employed (Income Tax Calculation)
Net Trade Income (Gross minus expenses) / Employment Income
Less Donation become Assessable Income
Less Relief become Chargeable Income
After Tax Rate become Tax Payable amount
Month to month interest is based on date put in?
The interest will only start counting every 1st day of the month
Doesn't make sense to top up early of the month. Eg, no point top up on 2/12 when the interest only starts calculating on 1/1.
The interest will only start counting every 1st day of the month
Doesn't make sense to top up early of the month. Eg, no point top up on 2/12 when the interest only starts calculating on 1/1.
For member, VC (to 3 accounts) no tax relief, only to SA below 55, and RA after 55 can have tax relief up to 7k and total relief capped at 80k
For self employed, VC (to 3 accounts) have tax relief, SA below 55, and RA after 55 can have tax relief up to 7k total relief capped at 80k
IRAS webbpage for CPF Relief for Self-Employed
Self employment
Assuming Total 41,000 net trade income
Tax relief is lower of either of the following 3
1) Cap at 37,740
2) 37% of Net Trade Income. Eg. 41,000 (15,197)
3) Actual contributed (based on CPF board send over to IRAS, by end Feb, can call IRAS to find out this figure). Eg. 3,900, 2019
Based of the above, the tax relief is $3,900 (lower of the 3)
Plus other Relief (Personal Relief, Parents Relief, Wife Relief, etc, up to a cap of $80,,000)
Home - Scroll all the way down, FAQ - CPF Schemes - Self-Employed Schemes - Self-Employed Matters - Voluntary contribution as a Self-Employed - Q3: Can I enjoy tax relief as a self-Employed
Lower of the following
1) CPF Annual Limit 37,740
2) 37% of Net Trade Income or Assessable Income
Plus other Relief (Personal Relief, Parents Relief, Wife Relief, etc, up to a cap of $80,,000)
Additional tax relief contribute to MA, Lower of either of the following
1) VC credited into MA
2) annual limit 37740 - self employed MA contributions
3) prevailing basic health care sum in MA (60k for 2020) - Medisave account balance as of 1 Jan of the same year if contributions
1) VC credited into MA
2) annual limit 37740 - self employed MA contributions
3) prevailing basic health care sum in MA (60k for 2020) - Medisave account balance as of 1 Jan of the same year if contributions
If Net Trade Income is: $80,000
Example of Reliefs
Personal Relief: $1,000
NS-man (Self/Wife/Parents): $1,500
Provident Fund/Life Insurance: $37,740
Course Fee: $100
Total: $40,340
Chargeable Income will be $39,600
Based on first $40,000 chargeable tax is $550
Refund means: money go into CPF acct
For Tax relief, Based on total contribution, never less of withdrawal
- if I top up 10k, tax relief 10k in Jan, withdraw 10k in Feb, then top up 10k again within the same year, it would be 20k relief
- CPF interest is calculated based on monthly rest, simple interest, then reflect at end of year statement, but compounded yearly.
If you do withdrawal from OA and SA
For Tax relief, Based on total contribution, never less of withdrawal
- if I top up 10k, tax relief 10k in Jan, withdraw 10k in Feb, then top up 10k again within the same year, it would be 20k relief
- CPF interest is calculated based on monthly rest, simple interest, then reflect at end of year statement, but compounded yearly.
If you do withdrawal from OA and SA
Sequence of withdrawal if you withdraw the same month after contribution, when the interest is not kicked in yet
It will automatically withdraw from SA contributed amount, then OA contributed amount
Sequence of withdrawal if you withdraw the after more than 1 month of contribution, when the interest has already kicked in.
SA interest then OA interest,
then SA contributed amount, then OA contributed amount
then SA to be depleted, then follow by OA
To Contribute to CPF via PayNow
Cpf - login - My request - building up my CPF - Using cash - make a housing refund - No change - confirmed - Start - tick on the address - amount 1000 - next - submit - PayNow - I have read - Make payment - system generate QR Code - Scan QR code To Check the yearly allowable contribution amount to date and contribute at the same time
Home - Services - Payment - e-cashier - Proceed - NRIC - Self-employed (to reduce MA liability) / Member (to do Housing Refund) - Payment For - Contribute to 3 accounts - I'm not a robot - Next - Start - check allowable contribution / Key in Contribute amount - Next - login via Songpass - PayNow / eNets - I have Read - Make Payment - Open POSB/DBS App - Scan and Pay - Scan QR code on laptop - need the DBS 2FA gadget (when the amount is too big)
To view and confirmed transfer
My Activity - click on transaction number - Successfully processed
To withdraw from CPF
Cpf - login - My Request - Retirement - Decide on my CPF option - I have read - Start - I would like to withdraw (withdraw from SA) or Withdraw my RA savings - Withdraw amount - next - Next - Interbank Giro to another of my bank account (1st time withdraw) - POSB - Key in account number - Singapore NRIC - I have read - Next - I do not want to transfer my CPF savings (from OA/SA to RA) - Next - Confirm details - submit - Acknowledgement
To view and confirmed transfer
My Activity - click on transaction number
For the first time withdrawal, it will ask you whether you are using Giro (this is the only option, you must put yes), it will be in progress for 3 to 5 working days since this is the 1st time. The Logic is that CPF doesn't want to assume that you want to use the same account or you have not withdraw anything from CPF before.
To view and confirmed transfer
My Activity - click on transaction number
For the first time withdrawal, it will ask you whether you are using Giro (this is the only option, you must put yes), it will be in progress for 3 to 5 working days since this is the 1st time. The Logic is that CPF doesn't want to assume that you want to use the same account or you have not withdraw anything from CPF before.
After you have done the 1st withdrawal, the 2nd and subsequent withdrawal will have more options, PayNow is one of the option. Once completed online withdrawal, the amount will immediately credited to your bank.
When withdrawal, PayNow (withdraw via PayNow) didn't show up was because you have use the PayNow once in a day to Contribute, so it will not show up.
When it is still in Progress and you try to make another withdrawal on the same day, following will be the Error Message
Error
You have already made an earlier application. Please contact us at 6202 2075 or email us at retirement-withdrawals@cpf.gov.sg for assistance.
Withdrawal from Retirement Account
cpf board - Login via SingPass - My Request - Retirement (eg. Retirement Sum & Age 55 applications) - Withdraw my Retirement Account Savings above Basic Retirement Sum
Applicable only if you own a property
- Enhanced withdrawal form - Ok
- I have read and accept (check on it) - Start
- Step 1 - Withdraw CPF Savings from Special and Ordinary Account - I do not want to (checked) - Next
- Step 2 - Withdraw CPF Savings from Retirement Account - I would like to withdraw (checkedd) - Next - Key in amount - I declare I have property - Next
- Step 3 - Payment Detail - PayNow - I have read and accepted - Next
- Step 4 - Transfer CPF Savings - I do not want to transfer my CPF savings - Next
- Step 5 - Withdraw CPF Savings Withdrawal Amount from Retirement Account - Submit
To view and confirm transfer
- My Activities - View Activitise
- My Statement - View Statement
- Login to your bank account to check
For those above 55
1st 30k in RA earns 6%
Next 30K in RA earns 5%
Any thing above that earns 4%
For those below 55
1st 20k in OA earns 3.5%
1st 40k in SA earns 5%
Generally, 1% more will be given to the 1st 60k that spread across OA, SA n MA if there is shortfall of 20k in OA n 40k is SA
1st 30k in RA earns 6%
Next 30K in RA earns 5%
Any thing above that earns 4%
For those below 55
1st 20k in OA earns 3.5%
1st 40k in SA earns 5%
Generally, 1% more will be given to the 1st 60k that spread across OA, SA n MA if there is shortfall of 20k in OA n 40k is SA
Additional Monthly payout AMP
Can top up in RA? Yes
Can Housing Refund after 65?
Yes, if within BR and FR, it will go to RA, then it will automatically recalculate monthly payout and give a higher monthly payout.
If he withdraw the same lump sum, the monthly payout will be recalculated and get a lower monthly payout
Yes, if within BR and FR, it will go to RA, then it will automatically recalculate monthly payout and give a higher monthly payout.
If he withdraw the same lump sum, the monthly payout will be recalculated and get a lower monthly payout
CPF life optional,
Retirement Sum scheme
- get monthly pay out, not for life, until 90 year old
- stay in retirement
- top up RA yes, monthly pay out, increase duration or increase payout
Top up 20k today
Increase pay out next month
2 years later can still withdraw 20k
65-70
CPF Life, payout for life
Retirement Sum Scheme
| How much can I withdraw from my Retirement Account (RA) if I own a property? |
| A | You may apply to withdraw your Retirement Account (RA) savings (excluding interest earned, any government grants received and top-ups made under the Retirement Sum Topping-up scheme) above your Basic Retirement Sum (BRS) if you:
You can withdraw your RA savings above the BRS fully if the expected CPF housing refund is able to restore your RA to your Full Retirement Sum when you sell/transfer the property in future. |
Your Basic Retirement Sum depends on which year you turn 55 and it does not increase further. That means, if you turn 55 in 2015, the Basic Retirement Sum is $80,500.
Table or Chart for Retirement Sum (Historical Chart)
2003 $40,000 $80,000
2004 $42,250 $84,500
2005 $45,000 $90,000
2006 $47,300 $94,600 $141,900
2007 $49,800 $99,600 $149,400
2008 $53,000 $106,000 $159,500
2009 $58,500 $117,000 $175,500
2010 $61,500 $123,000 $184,500
2011 $65,500 $131,000 $196,500
2012 $69,500 $139,000 $208,500
2013 $74,000 $148,000 $222,000
2014 $77,500 $155,000 $232,500
2015 $80,500 $161,000 $241,500
2016 $80,500 $161,000 $241,500
CPF Minimum Sum Scheme
With that in mind, here’s what the projected Retirement Sums for the next 30 years might look like:
| 55th Birthday in | Basic Retirement Sum (BRS) | Percentage Increase | Full Retirement Sum (FRS) | Percentage Increase | Enhanced Retirement Sum (3 x BRS) |
|---|---|---|---|---|---|
| 2003 | No data | NA | $80,000 | NA | No data |
| 2004 | $84,500 | 5.63% | |||
| 2005 | $90,000 | 6.51% | |||
| 2006 | $94,600 | 5.11% | |||
| 2007 | $99,600 | 5.29% | |||
| 2008 | $106,000 | 6.43% | |||
| 2009 | $117,000 | 10.38% | |||
| 2010 | $123,000 | 5.13% | |||
| 2011 | $131,000 | 6.50% | |||
| 2012 | $139,000 | 6.11% | |||
| 2013 | $148,000 | 6.47% | |||
| 2014 | $155,000 | 4.73% | |||
| 2015 | $161,000 | 3.87% | |||
| 2016 | $80,500 | $161,000 | 0.00% | $241,500 | |
| 2017 | $83,000 | 3.11% | $166,000 | 3.11% | $249,000 |
| 2018 | $85,500 | 3.01% | $171,000 | 3.01% | $256,500 |
| 2019 | $88,000 | 2.92% | $176,000 | 2.92% | $264,000 |
| 2020 | $90,500 | 2.84% | $181,000 | 2.84% | $271,500 |
| 2021 | $93,215 | Projected 3% Increase p.a. | $186,430 | Projected 3% Increase p.a. | $279,645 |
| 2022 | $96,011 | $192,023 | $288,034 | ||
| 2023 | $98,892 | $197,784 | $296,675 | ||
| 2024 | $101,859 | $203,717 | $305,576 | ||
| 2025 | $104,914 | $209,829 | $314,743 | ||
| 2026 | $108,062 | $216,123 | $324,185 | ||
| 2027 | $111,304 | $222,607 | $333,911 | ||
| 2028 | $114,643 | $229,285 | $343,928 | ||
| 2029 | $118,082 | $236,164 | $354,246 | ||
| 2030 | $121,624 | $243,249 | $364,873 | ||
| 2031 | $125,273 | $250,546 | $375,819 | ||
| 2032 | $129,031 | $258,063 | $387,094 | ||
| 2033 | $132,902 | $265,805 | $398,707 | ||
| 2034 | $136,889 | $273,779 | $410,668 | ||
| 2035 | $140,996 | $281,992 | $422,988 | ||
| 2036 | $145,226 | $290,452 | $435,678 | ||
| 2037 | $149,583 | $299,165 | $448,748 | ||
| 2038 | $154,070 | $308,140 | $462,211 | ||
| 2039 | $158,692 | $317,385 | $476,077 | ||
| 2040 | $163,453 | $326,906 | $490,359 | ||
| 2041 | $168,357 | $336,713 | $505,070 | ||
| 2042 | $173,407 | $346,815 | $520,222 | ||
| 2043 | $178,610 | $357,219 | $535,829 | ||
| 2044 | $183,968 | $367,936 | $551,904 | ||
| 2045 | $189,487 | $378,974 | $568,461 | ||
| 2046 | $195,172 | $390,343 | $585,515 | ||
| 2047 | $201,027 | $402,053 | $603,080 | ||
| 2048 | $207,057 | $414,115 | $621,172 | ||
| 2049 | $213,269 | $426,538 | $639,808 |
Looking at these numbers, I want to give up…
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