imsavvy Cartoon Clips

 

Go here to checkout the animated clips!

http://www.cpf.gov.sg/imsavvy/toonsgallery_ani_clips.asp

What is the SRS?

 

The Supplementary Retirement Scheme (SRS) is a voluntary scheme to encourage working individuals to save for their retirement, over and above their CPF savings.

 

The scheme provides the following Tax advantages:

- Participants are eligible for tax relief on the contributions they make to their SRS account

- Investment returns are tax-free except for Singapore dividends

- Participants who reach the statutory retirement age prevailing at the time of the first contribution are taxed only on 50% of the total amount withdrawn.

What is the CPFIS?

 

The CPFIS is an investment scheme (IS), it is designed to give CPF members more options to enhance their retirement savings through investments.

Currently, the CPF board guarantees a minimum interest of 2.5% for the Ordinary Account (OA) and 4% for the Special Account (4%).

 

Unless you are a savvy investor i strongly suggest keeping your monies with the CPF board as they are giving out very decent interest.

What is the Minimum Sum Scheme?

 

The Minimum Sum (MS) Scheme aims to help CPF members set aside sufficient savings to support a modest standard of living during retirement.

All CPF members are required to set aside the MS when they turn 55.

 

Options for the use of the MS for CPF members:

1] leave the MS with the CPF board

2] keep it with a participating bank

3] buy a life annuity from a participating insurance company [Recommended]

 

For all 3 options members will only receive a monthly payment from age 62 (or any new statutory retirement age).

Why is buying an Annuity recommended?

The Annuity option is the only one which guarantees payment till death, for the other options payment will cease upon exhaustion of the MS.

 

For Married Couples

Married couples age 55 or above may set aside a combined MS of 1.5 times provided they nominate each other as the beneficiary for the balance of their MS. (Note: Once nomination is made it CANNOT be revoked)

CPF LIFE

 

CPF LIFE is a scheme that is designed to provide lifelong income for the elderly in their retirement.

All CPF members are required to put aside the Minimum Sum (MS) at age 55 for their retirement needs.

The scheme will start in the year 2013.

 

The MS cash balance will be split into 2 parts:

Retirement Account – Monthly payment starts from age 65 to 80

LIFE premium – Monthly payment starts at age 80 till death