I Visited A CPF Office With Questions

A couple of weeks ago, I made an appointment to visit the CPF office at Maxwell to ask some questions about the sorry state of my retirement funds sitting with the institution. It doesn’t help my CPF balance that I have not been working for a year now and also have a mortgage to pay. I’m not in dire straits yet and there’s always Johor Bahru. 

I armed myself with questions and also asked around if anyone had questions. The CPF people have been on a mission to educate Singapore about how they can fund their housing, retirement and education needs via the 20% + 17% of their salary that goes into the immense pot of cash the government invests to eventually pay out when we’re 65 and older. 

1. Minimum sum - I’m 50 this year and the CPF minimum in 2025 is $213k. What’s the minimum sum going to be in 5 years? 

Context - There is a set minimum sum the CPF board requires individuals to meet so that they qualify for the Full Retirement Scheme (FRS). 

Response - There’s no fixed number the FRS minimum sum goes up by. It seems to be about $8k a year. So by the time I’m 55, the minimum sum will be about $213k + $32k = $245k. 

Will I hit this number? It seems with the 4% annual interest rate on my SA balance, I think I might! 

2. Turning 55 - what happens I turn 55?

Context - Fear of the unknown

Response - One needs to meet the FRS minimum sum at age 55 with funds from one’s Ordinary Account (OA) and Special Account (SA) which are combined to form the Retirement Account (RA) on that special birthday. 

In all likelihood, most of the money I will have in my CPF when I turn 55 will go into the RA. I will be able to withdraw $5k as a “you’ve come over the hill” gift. 

If there is more than enough money to meet the FRS minimum sum, the extra goes back into the OA and can be withdrawn. The CPF allows for a minimum of $5k to be withdrawn as a 55 year old birthday present. If there isn’t enough money to meet the FRS minimum sum, you’ll still be able to take out $5k. 

3. Retirement schemes - can I 'downgrade' to the BRS instead sticking to the FRS?

Context - In addition to the FRS, there’s also the Basic Retirement Scheme (BRS) and the Enhanced Retirement Scheme (ERS). 

The minimum sums for each are also different. The amount required for the BRS is half that of the FRS, so $106k in 2025. The amount for the ERS is twice that of the FRS, so $426k in 2025. 

The impact of these schemes is two-fold. One, the amount of cash the government will send into your bank account when you turns 65 is tied to each scheme. Quite simply, the more you have in your retirement account at 55, the more money you'll receive, capped at the ERS maximum. 

The estimated monthly payouts under each scheme in today's dollars are:

BRS - $900

FRS - $1600

ERS - $3200

Two, the BRS minimum sum is half that of the FRS, so instead having $213k required this year, one needs $106k. Once this is met, the remaining balance can go into the OA for withdrawal to a maximum of $120k. 

So if you have $200k when the RA is set up, you can opt to join the BRS and have a (200-106) 94k sum to do as you see fit when turning 55. A friend commented that if one is able to make more money vis-a-vis $900 a month from investing on one's own, it's not a bad idea. 

Response - One can choose to go on the BRS scheme. Two qualifiers:

- The request must be done in person at a CPF office.

- One must pledge one's property. This means validating that you have a home to stay in till you're 95 years old (check that HDB lease!) and that all owners of the property agree to this pledge. 

4. CPF for property - Do my CPF funds used for property purchases go to any minimum sum calculation? 

Context - Most adults use a good part of their CPF for housing. 

Response - No, sorry not sorry. But one can do a Voluntary Housing Refund. 

5. CPF for property - what's a Voluntary Housing Refund?

Context - All the money you used for buying a home is actually owed back to the CPF. Ironic but let's not get into that discussion. There's a section in the CPF website where you can check how much of your CPF you've used for housing and how much interest you owe yourself on this amount. Double irony I know. 

Response - You can do a Voluntary Housing Refund (VHR) to return money into the OA. It can be partial. What's good about this is that

- all the money goes into the OA unlike voluntary CPF top-ups which are split into OA, SA and Medisave.
 - the top-up can be used to qualify oneself for FRS or even ERS. 

Fact is, most of us would easily qualify for ERS if the funds for property were used for minimum sum calculation. 

6. CPF payouts - Can monthly payouts start before 65?

Context - Money get sooner better right?

Response - No. Also, you need to tell the CPF to start your payouts at 65! They don't happen automatically. Mandatory distribution starts only when you're 70 years of age. 

7. CPF topups - Can I top up my CPF to meet the minimum sum?

Context - You're allowed to top up your own CPF on your own. 

Response - Yes. There are two kinds of top-ups: 

A. Into all OA, SA and MA accounts - there's a maximum of $37,740 I can top up and this is distributed as 40%, 31% and 29% into each account respectively. Note that if the SA already meets the FRS minimum sum, any top-up will be distributed to meet the MA minimum first then the balance will go into the OA. 

B. Into SA only - you can only make a top-up if your SA account if it has not yet met the prevalent minimum sum. For example, with the current minimum sum of $213k, and if you have $200k in your SA, you can top up a maximum of $13k. As the minimum sum goes up annually, a top-up can be made in the next year. 

If you're working at age 55 when the RA is set up, you will continue to make contributions into your OA and MA. (SA closed to set up the RA.) You can move your OA funds into your RA as a top-up. 

Remember also that you can also make a Voluntary Housing Refund anytime to return funds into your OA then transfer into our RA to meet ERS requirements. 

8. SRS - Can the money I put into the SRS be counted as part of the minimum sum?

Context - You can put a maximum of $15,300 a year into the Supplementary Retirement Scheme, and also claim a tax relief for the same amount in that tax year of assessment. See this IRAS webpage.

Response - No. As long as the money isn't the SA it doesn't count towards the minimum sum. 

9. Turning 55 - When can I withdraw my CPF, birthday or birth year?

Context - Money get sooner better right?

Response - Birthday. No sooner. 

10. CPF topups - After I turn 55, is the top-up to the ERS minimum sum based on the year I turned 55 or the current year?

Context - Since payouts are based on what's in the RA, the more money in your RA means you get higher payouts. You can top-up your RA whenever you like after 55 and to whatever amount you can spare. 

Response - Based on current year of top-up, not when you turned 55. Also, you can only top up your RA to meet the ERS minimum sum after you turn 55. 

11. Buying a HDB flat - Can I use my CPF to buy a HDB flat after the RA has been set up?

Context - Some people might want to downgrade to a smaller flat when older. 

Response - Only allowed to buy 3-room flat or smaller direct from HDB. Check the Home Ownership Dashboard to figure out how much is available. 

12. Other nuggets of information

- You can't reverse out a top-up into the RA. 

- If at 55 years of age, you took out the balance in your OA and later sold your home which you used your CPF to pay for, you'll need to pay back whatever you took out at age 55. 

- Once you meet FRS minimum sum requirements, any additional funds added to the RA will enrol you to the ERS. ERS total allowed maximum is 2 times that of FRS minimum sum.

- Daily withdrawal limit from your OA is $50k but you can go have a chat with a CPF person to explain your needs.

- You can only top up your RA to meet the ERS minimum sum after you turn 55. 

- You don't get the $8k tax relief if your RA balance exceeds the FRS minimum sum. 

-------

I do hope I am accurate about the information presented here. I am happy to entertain comments and questions. 

Israel Versus Iran Requires Ice Cream

I’ve been disturbed by Israel attacking Iran.

Israel says they’re doing it because Iran can now make nuclear weapons. What’s problematic here is that Israel has a purported 90 nuclear warheads they refuse to let the International Atomic Energy Agency (IAEA) inspect.

Yet in the past few weeks, both Iran and the US have said they’ve been making “constructive progress” in the talks to limit Iran’s nuclear plans. So Israel has purposely poked the bear. And western powers have rallied behind Israel.
This surprises me because Iran is merely reacting, defending itself, because Israel started this mess. 

Israel bombing Iran’s nuclear sites has created a problem already, the IAEA says they’ve detected increased radiation.

How f**ked are the rest of us? Well, oil prices are going to rise (Russia will happily and secretly sell more oil), other costs will go up in tandem (because the cost of electricity and transport goes up), the economy will take a hit, we may need to move up a defensive posture (because we’re surrounded by 300m muslims) as we did after 9-11, tourism may suffer in the short term (we’ll all just go to Korea, Japan, KL and Bali per usual) etc.

What’s also disturbing is that many people online are cheering the “revenge” Iran is inflicting on Israel. There are videos of Lebanese people cheering the missiles that landed on Haifa. It’s crazy how so many people have been taught to hate other people. I don’t condone this escalation but I also condemn the extent of what Israel has done in Gaza. 

Mixed feelings are simplest explanation of where my head is at.

Also the phrase “negotiate peace from a position of strength”, something Ukranian president Zelenskyy has recently said, is tossing about my thoughts. It has many implications, and also features as one of Singapore’s key defence positions. Why else would we need F16s and submarines? Makes me feel like i should take up taekwondo.

How do I reconcile this internal madness? I’ve eaten half a tub of Ben & Jerry’s.

An Afternoon Enjoying Unique Wines And Stories At VinExpo Singapore

Last week, I was lucky enough to get a pass for Vinexpo, an event for wine makers from around the world to come to Singapore to showcase their best tipple for media, distributors and competitors. Needless to say, it was an elegantly buzzy afternoon out at Marina Bay Sands. Just before I met a friend to traipse through the aisles of wine wonder, we received a tip from a mutual compadre and wine lover to start at the Chilean pavilion in the hopes of trying a unique pour fermented with sake yeast. And so we did. 

Vina Marty produces this said beautiful bottled creation. The nice gentleman featured poured us glasses of Sauvignon Blanc birthed from sake yeast, and explained this yeast handles well at colder temperatures with a decidedly lower interaction with alcohol. These conditions allows the vineyard to keep the wines fermenting for longer, allowing richer flavours to permeate out of the pressed juices (called must). The light gold result we tasted was quite amazing, a more full-bodied wine that tickled the palate longer with a more robust deliciousness. What clever oenologists! As a result of the acquiring the yeast and eventually churning such lovely wines, Vina Marty's Gouette D'Argent Sauvignon Blanc sells well in Japan. Read about Pascal Marty's esteemed career that spanned work for Baron Philippe de Rothschild S.A and Opus One in California. Vina Marty's Instagram.

This is Pam Turner, co-owner of Ambar Estate wines. I approached her because I had not heard of wines coming out of seemingly wintry Portland USA - we're so used to bottles from Napa Valley and other spots in warmer California. Pam is a hoot, one of those calm, collected persons you meet who tells stories well with a hint of panache. She elaborated on how the climate and soil in the Dundee Hills suited certain varietals, and the vineyard's organic approach to viticulture earned them a reputation for high quality, sustainable output. And my oh my, she poured a wine that redefines expectations of what a Chardonnay can aspire to be. The 2022 Lustral Chardonnay is unreal. Small batch with a Decanter score 97, this white had a clarity paired with a rare lovely depth of flavour that defied expectations. I think I went "Good God, this is stunning." and my wine aficionado friend concurred. What's also wonderful is that the Ambar Estate offers tours of their vineyard. Pam showed us pictures of their glass-walled tasting and dining rooms that surround a magnificent Japanese-inspired landscape and overlook the verdant grape crops. Oh, Pam's hubby used to work for Softbank and she had spent lots of time in Japan soaking in the vibe and culture. Hence, the gorgeous zen-esque aesthetic of welcome area. If you're ever in Portland, you know where to go. 

Ambar Estate - image from ambarestate.com

Also "Ambar" sounded Indian so I asked Pam why the name. She replied she was a fan of Tolkien's Lord Of The Rings and wanted a name from the epic story as a homage to its greatness. Ambar in the Elvish tongue means the fate of an individual or of worlds, or civilised world (it can get complicated in the LOTR universe). Ambar Estate's Instagram

This is Liu Hui from Palacios Vinos De Finca (Palacios Estate Wines) and she introduced us to white Rioja wine! Rioja is a region slightly northeast of Madrid, between the capital and Pamplona, and south of the Basque region. I'm familiar with Rioja reds, with bottles aplenty at the local supermarket and airport duty free but finding a white Rioja was like meeting an albino tiger. The whites are exclusively packaged under the Nivarius label. The bottle we tried was made with Tempranillo Blanco grapes, with others created from unique-to-terrior Maturana,Viura and Garnacha varieties. Pleasantly fruity, this Nivarius would make for an easy accompaniment to a delicately flavoured cuisines. Palacios Vinos De Finca's Instagram.

We skipped and hopped a skootch down the aisle and met with Margherita Forno who gladly introduced us to the Il Falchetto vintages from the Piedmont region in northwest Italy. The wines comes from six vineyards that are part of an area that is now a UNESCO World Heritage Site. With a history of wine production since the 1940s, the brand also prides itself on not using any herbicides or insecticides to underscore their sustainable approach to winemaking. Margherita started us off with a white wine made with a lesser known grape, Arneis. The fruit is said to be unique to the Langhe region of Piedmont, and produces a pale beige tipple with subtle notes of pear. 

We moved on to the full-bodied reds made with the Barbera grape, a variety less familiar to us here in Singapore, with mostly Barolos, Chiantis and Siangoveses splashed about at our favourite Italian osterias. We tried a delicious, ruby red Pian Scorrone Barbera D'Asti to start, and immediately my reaction was that this wine would pair well with spicy food. I asked the Ms Forno what "D'Asti" meant and quite simply, it refers the wine is from the Asti district of Piedmont. (That just means all the Moscatos you've been imbibing aren't legit Piedmontese, haha) Our next taste test was a level up on the Barbera ladder and aptly labelled as "Superiore". The Lurei Barbera D'Asti was a bold, full-bodied envelope of wonderfully mellowed flavour. Incredible. To top off the Il Falchetto experience, Margherita perhaps left her family's next best secret to the last - the Ciombo Moscato D'Asti. It was another "Good God, what is this gift?" epiphany. There are Moscatos and then there's this amazing rapture of subtle sweetness with a lingering longan finish. What a fabulous lesson to Azzuri wine! Il Falchetto's Instagram

While taking our virgin VinExpo sips at Vina Marty, we had asked our host what unique wines he had tried at this gathering of vintners. He pointed out a South African winery that let the same batch of Sauv Blanc ferment in different places, and one of these places was the sea! (Jaw drop and pass me a glass!). We needed some help to locate Fryer's Cove's station but once i spotted the barnacle encrusted bottle on display we knew we hit clink clink. 

Fryer's Cove is a tiny verdant jewel in the middle of the mostly dry west coast of South Africa, 300 kilometers north of Cape Town. Located in the small town of Doringbaai that's famous for packing and exporting crayfish, this winery is the culmination of dream spawned in 1985, plagued by drought and sea-borne factors, resolved through co-operation with landowner neighbours, and winning a rare 5-star accolade from South Africa's Wine Magazine for its Sauvignon Blanc in 2005. What's cool and also our reason for savouring this wine is that vineyard is practically next to the Atlantic Ocean. Smothered by salty air in a unique terroir, the produce had to be special. We were not disappointed - the regular Sauvignon Blanc was a  crisp, grassy, mildly herby concoction, slightly balsamic even. Not a popular nod but it would most definitely pair well with mirin-marinated white fish or buttery crayfish. Next we had the same vintage that was tossed about at sea. The nice gentleman representing Fryer's Cove - I think he is Paul - explained that the different temperature profile and constant vibration from sea currents indeed produced a less than identical twin. This was less sharp, more mellow and evolved in its flavour, with a nose and tongue that would garner more mainstream appreciation. And we were lucky enough to try this bounty from the sea as they only brought along a few such bottles and did not sell them online, only at the winery some 9600 kilometers away. Fryer's Cove adopted the very apt tagline "Forged of the Earth, Tempered By The Sea" and we can appreciate perfectly. Fryer's Cove's Instagram 

The sun was still in the sky when my friend and I departed all abuzz. It was a lovely educational afternoon meeting people from all over the world who are instantly now my best friends because they let me try much wine. Thank you. May the respective Gods of Wine, Winemaking and Drunkenness be kind to your crops and provide for bountiful and predictable harvests. 

Till next year if luck and liver allow, 🥂

Ethan Hunt Can't Die, It's A Mission Impossible

I caught the latest and supposedly final instalment of Tom Cruise at his unbelievably agile best in Mission Impossible Final Reckoning last week. So essentially the whole movie is about how Ethan Hunt is firstly to blame for everything and secondly how he can’t die.

The crew from part 1 of the finale is all there including the French speaking Chinese lady who kicks ass. She has some of the most curt and cutting lines in the film, all in short, sharp Parisian tongue. And surprisingly the movie has a few jokey moments that had the audience laughing.

The bad guy Gabriel played by Esai Morales is wonderfully evil. I like how the directors Chris McQuarrie did close ups of Esai’s face at the opportune times to show to dastardly expressive he is. There’s one scene when the old planes dogfight that Esai elevates with a smile in the middle of the aerial madness. So nuts it's good.

The flashbacks from past films are lovely, spliced in as Ethan gets lectured on his shortcomings. Yes they tell a complete story where Final Reckoning is concerned but they remind us how good we’ve had with the Mission Impossible series. Tom Cruise has been phenomenal with all the daredevil stunt work. But one thing for sure - there’s no way he did the underwater outside submarine stunts of course, because no mortal can survive the pressure and temperature of the Arctic Ocean at such depths.

I found the other cool bit of this instalment was the re-introduction of a side actor from the very first Mission Impossible film. He didn't quite have a big role in no1 except for going to the toilet and finding a knife vertically embedded on his work desk (the knife also reappears in Final Reckoning!), but William Donloe (played by Rolf Saxon) is surely important in this one. Well done scriptwriters. Loop back and tie a beautiful bow.

Three hours of great fun. And of course the ending isn't cast in cold hard stone. I expect someone to steal something glowy and have this whole rigmarole of epic adventure start again some years from now. Rinse, repeat, recycle Hollywood.

What was a tad annoying from the start of the film which I caught at GV Plaza cinema 2 was the perpetual red dot on the screen, like a dead pixel that caught my eye each time the brightness dimmed. (It's in Tom's lovely long locks of hair below his left ear) And a lot of the movie is dark. I have written to GV about this glitch.