CPF review panel’s recommendations

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CPF review panel’s recommendations

Postby Sun_2010 » Thu Feb 05, 2015 12:05 pm

CPF review panel’s recommendations Part 1

We have all received the emails.
But I am :?
So please share your understanding.

And any worth while links .

Sun_2010
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Re: CPF review panel’s recommendations

Postby Sun_2010 » Thu Feb 05, 2015 12:07 pm

Bertha Henson's post only managed to confuse me more.
Here it is anyway...

https://sg.news.yahoo.com/cpf-minimum-s ... 44542.html

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Re: CPF review panel’s recommendations

Postby zbear » Thu Feb 05, 2015 1:17 pm

I am not confused by Bertha but confused by all the recommendations from the Panel.

Can someone clarify this - if Basic Sum is to be increased by 3% a year, does this mean the next jump will be 3% of S$161k (ie, $4830)?

So subsequently, every year's 3% increase is compounded?

Am I rite to say this?

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Re: CPF review panel’s recommendations

Postby starlight1968sg » Thu Feb 05, 2015 1:22 pm

zbear wrote:I am not confused by Bertha but confused by all the recommendations from the Panel.

Can someone clarify this - if Basic Sum is to be increased by 3% a year, does this mean the next jump will be 3% of S$161k (ie, $4830)?

So subsequently, every year's 3% increase is compounded?

Am I rite to say this?

Zbear
I think during 2017 to 2020, the 3% hike will be based on the last year's amt.

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Re: CPF review panel’s recommendations

Postby starlight1968sg » Thu Feb 05, 2015 1:24 pm

The recommendations made look like reframing the issue to be more acceptable to all, placate some, please others etc.
As said, the rich will not be impacted much. The poor remains similar - with the Basic Sum, the monthly payout is correspondingly reduced.

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Re: CPF review panel’s recommendations

Postby rivereast » Thu Feb 05, 2015 2:17 pm

no need to worry about it as it will change and change again. start reading about it when you are 54 yo.

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Re: CPF review panel’s recommendations

Postby Sun_2010 » Thu Feb 05, 2015 2:48 pm

zbear wrote:I am not confused by Bertha but confused by all the recommendations from the Panel.

Can someone clarify this - if Basic Sum is to be increased by 3% a year, does this mean the next jump will be 3% of S$161k (ie, $4830)?

So subsequently, every year's 3% increase is compounded?

Am I rite to say this?

I think so. In short it is to cater to the 3% inflation per year.
I created a sheet, am I correct?
My doubt is will the 3% increase be reflected in the payout too ( numbers in blue)?

The numbers in purple is what the min sums would be if the new rules continue for the next 10 or 15 years.

Image

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Re: CPF review panel’s recommendations

Postby Sun_2010 » Thu Feb 05, 2015 2:56 pm

And why no middle ground? (Or is there?)
Say I am turning 55 in 2016 and My OA+SA is 120K, it appears that i can go for Basic only. If i do not want to withdraw the excess(!), why not let me put in all the 120K so that i can get a higher payout that is prorated between Basic and Full

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Re: CPF review panel’s recommendations

Postby jetsetter » Thu Feb 05, 2015 3:14 pm

Sun_2010 wrote:
zbear wrote:I am not confused by Bertha but confused by all the recommendations from the Panel.

Can someone clarify this - if Basic Sum is to be increased by 3% a year, does this mean the next jump will be 3% of S$161k (ie, $4830)?

So subsequently, every year's 3% increase is compounded?

Am I rite to say this?


I think so. In short it is to cater to the 3% inflation per year.
I created a sheet, am I correct?
My doubt is will the 3% increase be reflected in the payout too ( numbers in blue)?

The numbers in purple is what the min sums would be if the new rules continue for the next 10 or 15 years.

Image



RE: Qn above in blue. My understanding is NO, based on answer found inconspicuously in Footnote 16(a).

"Monthly payouts for life from age 65 are estimates based on the CPF LIFE Standard Plan parameters today.

Payouts do not increase proportionately with the retirement sums required because of the greater impact of Extra Interest on lower balances.

The Panel notes that the Extra Interest helps lower balance members grow their savings faster, and provides a higher payout per dollar set aside for lower balance members."

Image

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Re: CPF review panel’s recommendations

Postby jetsetter » Thu Feb 05, 2015 3:14 pm

rivereast wrote:no need to worry about it as it will change and change again. start reading about it when you are 54 yo.


Yes, wil keep changing...Wait for own cohort.

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