Retirement Planning & Strategies Flashcards
1
Q
What is the Basic Retirement Sum in 2023?
A
$99,400
2
Q
What is the Full Retirement Sum?
A
$198,000
3
Q
What is the Enhanced Retirement Sum?
A
$298,200
4
Q
When does the CPF Life monthly payouts start?
A
65 years old
5
Q
Why will savings deplete in the future?
A
Inflation
6
Q
What is the retirement age from 1 Jul 2022?
A
63
7
Q
What is the retirement age by 2030?
A
70
8
Q
What is the re-employment age from 1 July 2022?
A
68
9
Q
What is the re-employment age by 2030?
A
70
10
Q
When does your CPF contribution rate decrease?
A
After age 55
11
Q
What is the employee and employer contribution rate (0-55)?
A
- 17%
- 20%
12
Q
What is the employee and employer contribution rate (55-60)?
A
- 14.5%
- 15%
13
Q
What is the employee and employer contribution rate (60-65)?
A
- 11%
- 9.5%
14
Q
What is the employee and employer contribution rate (65-70)?
A
- 8.5%
- 7%
15
Q
What is the employee and employer contribution rate (70 onwards)?
A
- 7.5%
- 5%
16
Q
How does allocation rates change as you age?
A
More money allocated to Medisave Account
17
Q
What is the employer and employee contribution rate (60 and below) in 2030?
A
- 17%
- 20%
18
Q
What is the employer and employee contribution rate (60-65) in 2030?
A
- 13%
- 13%
19
Q
What is the employer and employee contribution rate (65-70) in 2030?
A
- 9%
- 7.5%
20
Q
What is the employer and employee contribution rate (70 onwards) in 2030?
A
- 7%
- 5.5%
21
Q
How many Singaporeans (65 and above) will there be by 2030?
A
900k
22
Q
According to survey, what is the average age parents start to plan for retirement?
A
36 years old
23
Q
According to survey, what is the expected retirement age?
A
63 years old
24
Q
According to the survey, how many percentage expect to outlive their savings?
A
67%
25
According to survey, how many percentage is confident of maintaing lifestyle?
6%
26
According to survey, how many percentage are parents concerned about insufficient savings and healthcare affordability?
66%
27
According to survey, how many percentage are parents prioritize kids' education and development needs
86%
28
How many percentage of youths DO NOT believe that their parents are ready for retirement?
85%
29
What are the 7 risks you face as a retiree?
1. Overspending
2. Longevity
3. Investing
4. Inflation
5. Healthcare
6. Inability to work
7. Insufficient Income
30
What is the average expenditure of Eldershield claimants?
- A month
more than $2000 a MONTH
31
When was CPF established?
1955
32
What 3 basic needs does CPF fulfil?
1. Fully paid home
2. Healthcare expenses
3. Lifelong stream of retirement income
33
What interest rate does members receive for their OA, SA, RA receive?
Look at slides & examples to practice
34
What is the interest rate of OA?
2.5%
OR
The 3-month average of 3 local banks’ interest rates, whichever is higher.
35
What is the interest rate for SA, MA, and RA respectively?
4%
OR
Average yield of 10-year Singapore Government
Securities (10YSGS) plus 1%, whichever is higher.
36
What is the full retirement sum for members turning 55 in 2023?
$198,800
37
What is the minimum amount needed to be set aside at age 55 if you have a house?
Basic Retirement Sum
38
What is the minimum amount needed to be set aside at age 55 if you don't have a house?
Full Retirement Sum
39
How many percentage does the retirement sums increase every year?
3.5% per annum
40
When does the payouts for Retirement Sum Scheme start?
65 years old
41
How long can you receive payouts from the Retirement Sum Scheme?
Every month for 20 years with 4% interest rate.
42
What is Extra Interest and Additional Extra Interest for RSS?
To extend duration of payouts to age 85 and 90 respectively.
43
Who is RSS applicable for?
Those born before 1 Jan 1958.
44
Are those born before 1 Jan 1958 eligible for CPF LIFE?
Yes they can opt in anytime between Payout Eligibility Age: 65 and 1 month before they turn 80.
They have to also be a Singaporean Citizen or PR.
45
If you are born between 1 Jan 1958 to 30 April 1961, you are auto enrolled into CPF LIFE if:
1. SC or PR
2. At least 40k in RA at age 55
3. At least 60k in RA at least 6 months before PEA
46
If you are born after 30 April 1961, you are auto enrolled into CPF LIFE if:
1. SC or PR
2. At least 60k in RA at least 6 months before PEA
47
How many percent does your CPF Life payouts increase if you defer?
7% every year
48
What happens upon death if you are under CPF LIFE Standard Plan?
Refer to slides
49
What happens upon death if you are under CPF LIFE Basic Plan?
Refer to slides
50
How many years does Escalating Plan take to reach the same payout level as Basic Plan?
9-11 years
51
How many years does Escalating Plan take to reach the same payout as Standard Plan?
13-14 years
52
How many years does Escalating Plan take to breakeven with Standard Plan?
23-25 years
53
How can you balance the payouts from escalating plan and standard plan?
1. Defer payouts
2. CPF top-ups
54
At age 55, if you have $5k or less in OA and SA combined, how much money can you withdraw?
All (nothing goes into the RA)
55
At age 55, if you have $5k-$198.8k in OA and SA combined, how much money can you withdraw?
1. $5k
2. Any RA savings above BRS (if you have a house)
56
At age 55, if you have $198.8k and more in OA and SA combined, how much money can you withdraw?
1. $5k or OA and SA savings above FRS (whichever is higher)
2. Any RA savings above BRS (if you have a house)
57
When can you make CPF withdrawals?
55 years old and older AFTER setting aside retirement sum
58
Who can you conduct CASH top ups under the Retirement Sum Topping-up Scheme (RSTU)?
Anyone
59
Who are the 6 people you can conduct CPF TRANSFERS under the Retirement Sum Topping-up Scheme (RSTU)?
Spouse
Siblings
Parents
Parents-In-Laws
Grandparents
Grandparents-in-Laws
(NO KIDS)
60
Which account does the top-up go to for recipients aged below 55?
- Retirement Sum Topping-up Scheme (RSTU) -
Special Account (Up to FRS)
61
Which account does the top-up go to for recipients aged 55 and above?
- Retirement Sum Topping-up Scheme (RSTU) -
Retirement Account (Up to ERS)
62
How much tax relief do you receive through cash top-ups to YOUR account?
- Retirement Sum Topping-up Scheme (RSTU) -
Up to $8k per year
63
How much tax relief do you receive through cash top-ups to your family account?
- Retirement Sum Topping-up Scheme (RSTU) -
Up to $8k per year
64
What is the maximum amount of cash top-ups to get tax relief?
- Retirement Sum Topping-up Scheme (RSTU) -
Up to FRS
Anything above FRS (ERS) will not receive tax relief
65
What is the Personal Income Tax Relief cap?
- Retirement Sum Topping-up Scheme (RSTU) -
$80k
66
Can you do cash top-ups to your kid's account?
- Retirement Sum Topping-up Scheme (RSTU) -
Yes BUT no tax relief, it is to leverage attractive interest rates and compounding.
67
What is the maximum amount you can top up to your CPF?
- CPF Voluntary Contribution Scheme -
$37,740 per year (includes mandatory contributions)
68
What is the Basic Healthcare Sum in 2023?
$68,500
You can only top up to this amount in MA and receive TAX RELIEF.
69
What is the max sales charge for CPFIS?
Up to 1.5%
70
What is the max fund management fees for CPFIS?
Up to 1.75% per annum
71
How much cash refund can you get from CPF withdrawn for properties?
Partial/Full refund up to principal CPF + accrued interest
72
What is the Matched Retirement Savings Scheme?
Dollar-for-dollar matching by the Government for CPF members who have low retirement savings.
73
What is the annual cap of CPF RA Top-Ups?
- Matched Retirement Savings Scheme -
$600 (Annual/Per year)
74
When does the Matched Retirement Savings Scheme take place?
2021 to 2025 (Over 5 years)
75
How many Singaporeans are eligible for the Matched Retirement Savings Scheme?
435,000
76
Who are eligible for Matched Retirement Savings Scheme?
Those aged 55 to 70 + fulfil other criteria (Low retirement savings)
77
What is the maximum amount of RA Savings to be eligible for this scheme?
- Matched Retirement Savings Scheme -
Less than prevailing BRS
78
What is the maximum average monthly income for this scheme?
- Matched Retirement Savings Scheme -
$4k
79
What is the maximum annual value of residence for this scheme?
- Matched Retirement Savings Scheme -
$13k
80
How much properties can you own before you are not eligible for this scheme?
- Matched Retirement Savings Scheme -
1
(2 or more you are not eligible)
81
When was Matched Retirement Savings Scheme launched?
2021
82
Who can you use Medisave on?
(Singaporeans & PR ONLY)
6 categories
1. You
2. Spouse
3. Children
4. Parents
5. Parents-in laws
6. Grandparents
* NO siblings, NO grandparents-in laws
83
What is the sequence of cash top ups to MA?
MA (Up to BHS) > SA/RA (Excess up to BRS or FRS) > Excess Excess OA
84
What is the minimum age to make a CPF Nomination?
16 years old and above
85
What happens if you have no CPF Nomination?
CPF bequests transferred to Public Trustee Office for distribution.
There will be admin fees (Min. $15) taken from the CPF savings (inclusive of GST).
86
What is the Enhanced Nomination Scheme (ENS)?
Given to nominee's CPF accounts
87
What is the Special Needs Savings Scheme (SNSS)?
For special needs children
88
What does CPF Nomination cover?
1. CPF Savings in OA, SA, MA
2. Unused CPF Life Premiums, if any (RA)
3. Discounted Singtel shares
89
What is not covered in CPF Nomination?
1. Properties bought using CPF savings
2. Payouts from Dependants Protection Scheme
3. Investments under CPFIS
90
What is the admin charge for the 1st $1k of un-nominated savings?
2.4%
91
What is the admin charge for the next $9k of un-nominated savings?
1.5%
92
What is the admin charge for the next $240k of un-nominated savings?
0.75%
93
What is the admin charge for the next $250k of un-nominated savings?
0.45%
94
What is the admin charge for more than $500k of un-nominated savings?
0.3%
95
What is the Flooring Strategy?
1. Identify essential expenses (needs) and discretionary expenses (wants/luxeries)
2. Match Income streams to expenses (Needs with inflation hedged, safe, predictable products. Wants with Growth, capital appreciation, volatile products)
96
What is the Bucketing Strategy?
Assets allocated to different buckets with various risks and returns invested over different time periods.
Each bucket is withdrawn sequentially at a fixed period.
97
What is the Silver Housing Bonus?
1. Downsizing current (HDB flat) & Private Property (AV < $13k) --> 3-room or smaller flat
2. Receive up to $30k in cash when you top-up proceeds into CPF RA and join CPF Life
98
What is the Lease Buyback Scheme?
1. Sell tail-end lease to HDB and receive $$
2. Proceeds used to top up RA
3. Then these $$ are used to buy a CPF Life PLan
99
Hoa many households have opted for LBS since its launch in 2009?
92k households
100
What is the DBS Home Equity Income Loan?
1. NO monthly loan repayments
