Starting 2016, CPF members above 55 years old can contribute up to three times the Basic Retirement Sum (BRS) into their Retirement Accounts (RA).
Current Basic Retirement Sum is $80,500. Full Retirement Sum is two times BRS, i.e $161,000. Enhanced Retirement Sum is three times BRS, i.e $241,500.
The basic interest rates (without considering additional interest rates for certain conditions) are:
Interest payment for Ordinary Account is 2.5%.
Interest payment for Special Account is 4.0%.
Interest payment for Medisave Account is 4.0%
Interest payment for Retirement Account is 4.0%.
If one has enough money in his Ordinary Account and there is no need to use this amount for property purchase or for personal withdrawal, it is an advantage to put more into the Retirement Account to earn 4.0% interest instead of just 2.5% interest in the Ordinary Account.
In addition, with higher Retirement Sum, your monthly payout on reaching 65 years old is also raised.
|Amount in Retirement Sum||Monthly payout in CPF Life|
|$80,500||$660 – $720|
|$161,000||$1,220 – $1,320|
|$241,000||$1,770 – $1,920|
One must bear in mind that once the money is transferred from the Ordinary Accout to the Retirement Account, this amount cannot be reversed.
If one can earn more than the 4% interest rate per annum based on their investments (without dilution in investment sum), then the additional top-up into the Retirement Account is not necessary.
Please refer to CPF for more details.
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