Following are the Questions And Answers from CPF You Should Know Before You Turn Age 55 :
1) When we just past 55 years old, assuming the we have invested the Special Account money and left min of $40K before 55, will the $40k left in the SA be transferred to RA ?
From CPF : Yes the 40K from SA will be transferred to RA. CPF will auto transfer from SA follow by your OA to meet the FRS, e,g $192k(Y2022) Not ERS $288k(Y2022)
2) If question one is true, any cash out request, the amount will be drawn from the OA instead of SA since SA is empty ?
From CPF : Yes, Any cash out request after 55 need to drawn out from the SA first till SA is empty, follow by OA.
3) Can we specify to invest Annuity Plan/Approved funds from OA instead of SA, and have cash payout to our bank after age 55 ( For Annuity Plan) ?
From CPF : Yes, You can invest Annuity Plan/Approved funds from OA or SA as long as it higher than the min sum, OA min sum is $20k and SA $40k as of Y2020.
The cash payout from your Annuity Plan can pay to your bank instead of back to CPF if you have applied online to close your investment after you invested the annuity.
4) At age 55, what will be the procedure to ensure that the full ERS is being transferred to RA is this is our desire ?
From CPF : You can transfer your money from OA or cash top up your RA to max ERS after age 55 any time..
6) Assuming that we have full ERS of $271500 in RA when we passed age 55, what would be the actual sum when we reach age 65 ? It is based on first 30K at 6%, 2nd 30K at 5% & the remaining at 4% compound over 10 years ?
From CPF : Correct, It is based on first 30K at 6%, 2nd 30K at 5% & the remaining at 4% compound over 10 years.
If you executed my earlier post of How-to-maximise-your-special-account.html,
And
Prefer to cash out some money from your CPF, you should cash out from OA before your sell your SA investment and let your money flow back to SA. As any cash out request after 55 need to drawn out from the SA first till SA is empty, follow by OA.
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