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    Healthy retirement with CPF transfers

    If you are about to turn 55, you might have already started planning about how you will be using the payouts you will receive from your CPF during your years of retirement. But did you know that you can still continue to maximise your retirement funds? With the Retirement Sum Topping-Up Scheme (RSTU), you can not only increase your own retirement savings, but also help your loved ones grow their retirement savings.

    Retirement Sum Topping-Up Scheme

    As mentioned above, this scheme has been designed to help you build your own or your loved ones’ retirement savings. You can do this by simply transferring your CPF funds or cash to your own/your loved ones’ Special Account (if the recipient is below 55) or Retirement Account (if the recipient is 55 or above). While an ordinary savings account offers interest rate of up to 3.5% p.a., the Special Account and the Retirement Account can give you up to 5% p.a. and 6% p.a. interest, respectively.

    Benefits of CPF Transfers

    Better interest rates: Your savings in the Special Account and Retirement Account can get you up to 6% interest p.a., compared to your ordinary savings account which gives a guaranteed interest rate of just 2.5% p.a.

    Here’s how you can earn up to 6% interest: Your savings in the Special Account and Retirement Account will give you minimum interest of 4% p.a. In addition to that, you can earn an extra 1% p.a. on the first S$60,000 of your combined CPF balances, including up to S$20,000 that comes from your Ordinary Account. Now, with effect from 2016, you are eligible to earn an additional 1% p.a. on the first S$30,000 of combined CPF balances, if you are aged 55 or above.

    Enjoy lifelong monthly payouts with CPF LIFE: When you retire, you always run the risk of running out of your savings. With CPF LIFE, this risk can be minimised. CPF LIFE provides you with lifelong monthly payouts, if you were born in 1958 or after and if you are having a minimum amount of S$60,000 in your Retirement Account six months before you become eligible for payouts. When you meet these conditions, you are automatically put on CPF LIFE.

    In case you don’t meet the criteria for CPF LIFE, you can still apply for it. You will have to make the application at any time after you reach your payout eligibility age, but at least a month before you turn 80. CPF LIFE provides you with a regular monthly income until death.

    Enjoy higher earnings during your retirement years: Every single dollar that you save in your Special Account or Retirement Account will grow year after year, thanks to compound interest. So, the earlier you start making CPF Transfers, the better it is.

    CPF Transfers to yourself

    You can transfer your Ordinary Account savings to your own Special Account or Retirement Account to earn up to 6% p.a. interest. If you are below 55, you can transfer only your Ordinary Account savings. However, if you are 55 or above, you can transfer all of your Special Account savings, as well as all of your Ordinary Account savings.

    CPF Transfers to your spouse

    If you wish, you can transfer your CPF savings to your spouse’s Special or Retirement Account. You can only transfer the amount that is left after setting aside the Basic Retirement Sum (BRS).

    • How much can you transfer to your spouse’s account? If you are below 55, you can only transfer your Ordinary Account savings left after putting aside the BRS of S$83,000. If you are 55 or above, you can transfer your Ordinary, Special, and Retirement Account savings that are left after keeping aside the applicable BRS.
    • How much can your spouse receive from you? If your spouse is below 55, he/she can receive up to the current Full Retirement Sum of S$160,000 in their Special Account. If the spouse is 55 or above, he/she can receive up to the current Enhanced Retirement Sum of S$249,000 in their Retirement Account.

    Here’s how you can help your spouse earn more with CPF Transfer

    Transferring your CPF savings to your spouse’s account can help him/her earn more in monthly payouts. Remember: the scheme allows you to earn an extra 1% interest on the first S$60,000 on a member’s combined CPF balances. So, if your spouse’s CPF account balance is less than S$60,000, you can transfer your balance, after setting aside your BRS, to his/her account.

    Before transfer: Assume you have S$126,000 in your CPF savings and your monthly payout (from 65 years age) is S$1,080. Your wife has S$40,000 in her CPF savings and her monthly payout (from 65 years) is S$380.

    After transfer: Assume you transferred S$43,000 to her CPF account. Now, after the transfer, you have S$83,000 in your CPF savings and your monthly payout is S$750. Your wife has S$83,000 in her CPF savings and her monthly payout increases to S$700. So, with CPF Transfers, your spouse can also enjoy better monthly payouts.

    CPF Transfers to your other loved ones

    The other loves can be your parents, parents-in-law, siblings, grandparents, and grandparents-in-law.

    • How much can you transfer to your other loved one’s account? If you are less than 55 years of age, you can transfer your Ordinary Account savings left after keeping aside the current Full Retirement Sum (FRS) of S$166,000. If you are 55 or above, you can transfer the savings from your Ordinary Account after putting aside the applicable FRS.
    • How much can your loved ones receive from you? When the receiver is below 55, he/she can receive up to the current FRS of S$160,000 in their Special Account. If your loved one is 55 or above, he/she can receive up to the current Enhanced Retirement Sum of S$249,000 in their Retirement Account.

    How to transfer your CPF savings?

    • Online transfer: You can transfer your CPF savings online by visiting the CPF website and logging in with your SingPass Id. Once you are logged in, you will have to go the ‘My Requests’ section. There you will have to choose who you want to transfer the amount to. Once you have selected that, you can complete the transfer.
    • Mail: You can also request transfer of your CPF savings through mail. You will need to download a form from the CPF website and fill all the required details. Once the form is complete, you will have to attach all the supporting documents and mail it to ‘CPF Board, Robinson Road P.O. Box 3060 Singapore 905060’.
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