Today, we could like to address this question:
What happens if my OA+SA is below the BRS?
Answer: NOTHING HAPPENS!*
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1) You do not need to personally top up your CPF accounts with your cash to reach your BRS
2) No penalty involved if you fail to meet your CPF BRS
3) It is not compulsory for your to meet your CPF BRS, unless you wish to make certain transactions
*4) You will still be eligible to join CPF LIFE and receive a monthly payout when you reach the payout eligibility age.
There is an amount that will automatically make you participate in a CPF LIFE plan.
However, if you fall below the amount and wish to join CPF LIFE, you would need to submit an application to CPF to join.
|Join CPF LIFE||Turn 55 between 1 Jan 2013 to 30 Apr 2016||Turn 55 on 1 May 2016 and after|
|Automatically||$40,000 in RA when you reach 55||NA|
|Automatically||$60,000 in RA when you are near your payout age||$60,000 in RA when you are near your payout age|
|via Application||Fail to reach the above requirements||Fail to reach the above requirement|
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BRS: Basic Retirement Sum
OA: Ordinary Account
SA: Special Account
RA: Retirement Account
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This article first appeared on Investment Stab. Follow them on Facebook.