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Harvey 0 Comments Planning your Retirement Retire Wealthy & Wise Retiree Tips and Tricks
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Why Saving For Retirement Feels Impossible
Harvey 0 Comments Planning your Retirement Retire Wealthy & Wise Retiree Tips and Tricks
Retirement is the final
chapter of the American dream. But the dream of the
golden years is quickly turning into a fairy tale. Retiring in America today is
not easy. It is a very tall mountain
to climb. More than a third of
Americans today feel unprepared or unsure if
they're on track for retirement. And nearly a
third of seniors say they either plan to work through
the age of 70 or never retire in their lives. I'm not want to be rich. I just like to have enough
to where I could be comfortable. The pandemic, a war in
Europe, rate hikes, as well as fears of a recession,
have also led to great turmoil in the market,
wiping out an estimated $3.4 trillion from retirement
accounts during the first half of 2022.
The United States is
definitely facing a retirement crisis. If we don't do anything
about it, years down the line, you're going to wind
up with a lot more seniors in poverty, reliance on
public services. Others say the retirement
crisis in America is a myth. The US retirement system is
stronger than it's ever been. Retirement incomes
have never been higher.
Retirement savings have
never been higher. Participation in retirement
plans has never been higher. All the things we would
like our retirement system to be doing it is doing. So is America facing a
retirement crisis? And if so, can it be
stopped? My name is Juanita Dykes. I live in Rural Retreat,
Virginia. I've been retired for six
years now. I've had a number of jobs. I've worked in factories
all my life. Unfortunately, I didn't
listen to people telling me that I needed to save for
retirement. I thought I would get paid
by the government. You'll have enough to live
on. Wrong, you don't. I get $1,574 from Social
Security. I get $631 from my pension. You pay all your bills, car
payment, all your utilities, all your insurance, all
that together. It just don't add up.
Americans aren't saving
enough for retirement. I don't have no savings. I'm probably in the red at
the bank for you. You write a check and you
don't have nothing to cover it. Then when you get your
next check, all that extra money comes out. The median retirement
account balance for those approaching retirement sat
at $89,716 in 2022. That translates to less
than $500 per month over a 15-year retirement span. Baby boomers, they were well
into their mid-forties before 401(k)s came along
and they had the opportunity to saved When they entered
the workforce, the assumption was social
security and traditional pensions.
Now that they're
reaching retirement, the ground rules have changed
and the expectations are that they would have saved
more along the way. The last place I worked was
just like a factory job. And you got paid, that's
it. No extra nothing or
nothing. We didn't have paid
holidays. You didn't have vacation. You didn't have nothing. You
just worked. The other problem is that
during times of economic crisis, there's a lot of
leakage out of retirement savings plans. Whereas things like pensions
and social security, they are lockbox. You don't
touch that money no matter what. That is there for
your future. IRAs and 401(k)s often tend
to get tapped when people run into unemployment or
health issues, medical expenses. In our own research of
retirees, we see that they're doing pretty well. However, they're not
financially in a position to absorb a major financial
shock.
And a big example of that
is the high cost of long-term care services and
support. If they have some sort of
cataclysmic health crisis or need that long-term care,
they just don't have the financial resources to be
able to afford it. One in five Americans, aged
65 and older, said they spent more than $2,000 out
of pocket on health care. A separate study found that
more than a third of Americans over 65 are
worried they're unable to afford health care services
within the next 12 months.
If you go to a regular
doctor, that's covered. But if you go to a
specialist, that's like $30. I have an appointment this
week with a specialist. I don't have the money to
go, so I'll have to call and cancel that and redo it
some other time. Higher life expectancy also
means that more retirees can outlive their retirement
savings. An analysis by the World
Economic Forum found that men live 8.3 years longer
than their retirement funds can pay for, while women
live 10.9 years longer. Younger generations aren't
faring any better. About 25% of non-retired
adults in America have no retirement savings
whatsoever. A lot of people don't have
access or at least don't have consistent access to
an employer-sponsored retirement plan.
And we know
from the behavioral science research that people don't
walk into a bank and say, I want to open up an IRA. Workers aged 25 to 34 had an
average total saving rate of 10.5%, while workers under
25 had a saving rate of 8%, far from the recommended
total saving rate of 15%. And as we look at the
changing landscape, especially millennials and
Gen Z, they're entering the workforce with student
loans, with a debt that is unprecedented from earlier
generations. Another issue impacting
younger generations is they're going to change
jobs many times over the course of their careers, as
well as spend time in self-employment.
So they're
going to have to take a much more hands-on
do-it-yourself approach in managing their savings and
investments and ensuring that they're saving enough
to last their lifetime when they retire. I have considered going back
to work, but I had a knee replacement two years ago
and the other one's trying to tell me it's about time
for it, so I can't stand very long at a time. I won't say that I won't
have to because I might if they don't get this social
security straightened out where we can have enough to
live on. In 2022, the Social Security
Administration estimated that their reserve will
deplete by 2034 unless Congress intervenes,
putting Social Security benefits under threat. Because of demographic
changes during the 70s and 80s, social security built
up a large surplus and is now in the process of
depleting that surplus. Once depleted, retirees will
only receive 78% of their benefits starting then. It's not obviously the end
of the world, and it doesn't mean social security is
bankrupt at all, but it does mean a meaningful reduction
in benefits that's really going to hurt people,
especially at the bottom and even in the middle.
Inflation has been the most
disruptive force to retirement. A quarter of
Americans are expected to delay their retirement due
to rising consumer costs. The worker is now the one
that bears the longevity risk and the market risk in
retirement. Market downturns are really
the most problematic for people who are about to
retire because that represents a real loss to
them as opposed to something that they can recover from
over time. $1,000,000 in a retirement
account two years ago is worth about $120,000 less
today when adjusted for inflation. If you're retired and on a
fixed income, inflation really, really, really
hurts. And we've come out of decades of historically low
inflation to all of a sudden pretty substantial
inflation, especially in the things that matter to
people, which is food and fuel. I'm like anybody else. I like a good steak every
now and then. Well, that's just plumb out
of the question because you can't afford to buy that. You just have to buy what
you merely have to have and then hope that you have
enough left to pay your bills. Inflation is higher than
we've seen in a long time.
Right now, we don't really
know whether this is we're now in an era of high
inflation or higher inflation or whether it is
a longer tail from the effects of the pandemic. An ongoing retirement crisis
reduces consumption and drains resources which
could be detrimental to the economy as a whole. In terms of people who wind
up falling into economic hardship during
retirement, that is something that a lot of
states have taken very, very seriously, and they're
really concerned about more and more seniors needing
things like food stamps, subsidized housing, which
is already in very low supply, and also Medicaid. A hidden impact that doesn't
get as much discussion is the impact on families. When an aging parent
doesn't have the resources to care for themselves, or
maybe they can't afford long-term care, they turn to
their adult children.
As adult children step in to
support them, this detracts from their own ability to
save for retirement. So this could create a
generational, vicious cycle unless we solve for it. But some argue that the
retirement crisis in America is merely a myth. The US retirement system is
strong. The income of the median
retiree, the typical retiree in the United States is at
record levels. It's never been higher. Poverty and old age has
never been lower. The median US retiree has
the highest disposable income in the world,
according to the OECD, 40% higher than Germany, 50%
higher than the Netherlands. U.S. retirees in surveys
are much more likely than European retirees to say
they can maintain their pre-retirement standard of
living. So all the things we want
people to do are going in the right direction. In 2021, nearly eight in ten
retirees were confident they'll have enough money
to live comfortably throughout retirement,
while over seven in ten workers agreed with the
sentiment.
Nobody really has the
incentive to tell the truth about the successes of the
US retirement system. Four in five retirees also
reported that their overall lifestyle after retirement
was as expected or better. I think everyone agrees
there are certain people who are falling behind in their
retirement savings. That's true today. It was
true in the past. And the question is, what
do we do about it? The danger of claiming we
have a retirement crisis is we throw the baby out with
the bathwater.
We throw out the things
that are working for us and we don't address the
problems that really exist. I think a lot of it is
semantics almost. Most researchers do
understand that there is a substantial portion of the
population that are going to be financially insecure in
retirement. There are some debate about
whether that's, you know, high 30%, 50%, 60%, but
that's not a small portion of the population. Policy will likely play a
pivotal role in improving the state of retirement in
America. Retirement policy is one of
the few things in this country that has a long and
exemplary history of collaboration among both
parties. What we need from a public
policy perspective is a broader collaboration among
industry, among employers,the great minds,
academics, nonprofits and everyday people to step
back and take an even broader look at our
retirement system and address the issues that are
the greatest detractors of retirement security right
now. The Securing a Strong
Retirement Act of 2022 was passed by the House in
response to concerns over retirement security.
The act includes many
benefits that could help more Americans save for
retirement, such as automatically enrolling
employees into a retirement plan unless they elect not
to participate. But issues concerning
coverage still need more attention. Almost half of
the employees in the private sector between the age of
18 and 64 aren't provided with options to save for
retirement, and about 65% of employees in companies with
10 to 24 employees lack retirement plans.
Improving retirement plan
coverage, meaning ensuring that all workers have the
ability to save for retirement in the workplace
is paramount to increasing retirement security in the
U.S. We need to have a
retirement system that is fully inclusive so that
people have the opportunity to save, invest and grow
their savings over their lifetime. Ultimately, retirement
security today rests in the hands of future retirees. Tip number one, avoid
getting overwhelmed. Getting overwhelmed can
lead to procrastination, and it can lead to inaction,
which is counterproductive. Another is create a
retirement strategy. Even have some fun with it. Envision what you would
like your life to be like in the near future, or if
you're younger, far away into the future, and then
put some numbers by it. Start building a plan. Seek help if you need it. There are financial
professionals available to help you with that. You have to engage. You have to learn as much
as possible. So it's up to you to know
enough to ask good questions and make informed
decisions.
It's your retirement. You need to save. I know when you're young,
you think, I don't need to save, I'll do that next
time, we'll do this whenever . Do it now because I'm
telling you, you need to. If you plan on living any
length of time, you need the extra money..
What Is A Silver Gold IRA?
Harvey 0 Comments Retire Wealthy & Wise Silver IRA
what is a silver gold ira what is a gold ira the term gold ira refers to a specialized individual retirement account ira that allows investors to hold gold as a qualified retirement investment a gold ira or precious metals ira is an individual retirement account in which physical gold or other approved precious metals are held in custody for the benefit of the ira account owner it functions the same as a regular ira only instead of holding paper assets it holds physical bullion coins or bars what is a silver ira a silver ira is an individual retirement account that includes but isn't necessarily limited to silver assets such as physical bullion or paperback silver i.e silver stocks or etfs can you put gold and silver in an ira you can't hold physical precious metal in a regular individual retirement account ira however there are specially designed precious metal iras that let you invest for retirement using gold palladium silver and other valuable metals our gold and silver iras a good idea it's a common mistake to think of physical gold and silver as investments they are not gold and silver are forms of currency and owning them is a hedge gold and silver don't produce income or paid dividends or increase in value the way a stock does how does a gold and silver ira work a gold ira works exactly like any retirement account with the added benefit that it provides you more control over your investment to include physical gold coins and bars and other irs approved silver platinum and palladium metals how do silver iras work a silver ira is a special type of retirement account that allows you to invest in eligible silver coins and bars the rules are the same as those for any other ira except you can add silver and other precious metals to your account whereas regular iras focus on stocks and other paper assets is a silver ira a good investment great for portfolio diversification a silver ira isn't subject to the vagaries of an uncertain market it holds its value over time which makes it an excellent safe haven asset can i roll my ira into gold or silver managing your own ira if your ira allows you the ability to choose the stocks bonds and funds in it you can choose investments that are similar to owning physical gold and silver however you can also roll over your ira into physical gold and silver although that process is a bit more complicated for a comparison of the best gold ira companies visit https colon slash slash www.coldeera401 convesting.com slash gold ira company slash click link in the description below
Silver and other precious metals IRA
Read MoreSocial Security Disability vs. Retirement at Age 62: What’s Better?
Harvey 0 Comments Planning your Retirement Retire Wealthy & Wise Retiree Tips and Tricks
– You are approaching
62 and you wanna know, should you file for
Social Security Disability because you can't work? Or should you just take regular
Social Security Retirement because you're eligible as early as 62? Stay tuned, let me talk about it. (upbeat music playing) Okay, so let me break down this issue. Well, first let me just
make it easier for you. It's better to get disability, but it's harder to get disability. So in reality, you're probably more likely to just give up and file for retirement. That's the short version. Now I'm gonna explain it
a little bit more. Okay? So I'm Sylvia Gordon with
"The Medicare Family". And you can take Social
Security if you qualified, it means you worked at least 10 years, or you were married to someone that worked at least 10 years. You can take it as early as age 62 and you can take it as late as whenever, but it's just a choice if
you wanna take it at 62, you can take it at 62.
However, if you've been watching me you know that you will
not get your full amount. You would get your full amount
at your full retirement age. So it's gonna be between 66 and 67. If you wanna take it early, so you wanna take it, in this scenario, I'm gonna talk about at 62, your earliest possible chance to choose to take your retirement benefit.
You're not gonna get a 100%, you're gonna get more like 70%. Okay, so this is 62 and you're
like, well, I don't want 70%. You can wait and take it later. Now, my scenario that I was talking about was somebody that says,
I'm 61, 60 around there. Should I wait till 62 and take retirement? Or should I apply for disability? The reality is which has
been exacerbated by Covid is that the system is very overloaded and there's a lot of hurdles. So that the great demand for disability you're probably gonna get turned down and you're probably gonna get
it turned down a couple times. It's very hard to get Social
Security Disability even if you're very deserving just because of the amount of people that need it. There are certain things
that are fast tracked which are Late Stage Cancer,
Lou Gehrig's Disease, ALS. I think MS, there's certain
things that are fast tracked but for most of you that will
eventually get disability it's gonna take you on average two years. So if you're 62 and you want
to apply for disability, this is where I told you at the beginning, the shortcut, is you'll get more money.
Because when you get disability, it's based off your entire work history and you would get a
100% of what you paid in of how social security calculates it versus if you could take retirement, they would base it off
your entire work history and you would get a 100% at
your full retirement age. So remember I said you wanna take it at 62 before your full retirement
age, so it's a reduced amount. So if you've got disability
at 62, you'd get more than if you took early
Social Security Retirement. I know it's like not
even fun to talk about. I know you're not having
fun listening to it. Social Security has different trust funds. This one is the Disability Trust Fund. This one is the Retirement Trust Fund.
I know you don't care about
how the sausage is made. You just wanna know which
one will pay me more? Disability pay more. Which one is easier to get? Retirement is easier to get. So based on your illness, your situation you might choose to try for disability or you might try for
disability and wait, give up and then switch to retirement. Or you might just forget about disability go straight to retirement. If you take your retirement benefit, you will lock that benefit
in for the rest of your life.
If you take your
disability benefit, again, you're going to lock that benefit in for the rest of your life. But Sylvia right here you said this denotes
your full retirement age. Won't I get more money at
my full retirement age? Surely? Hopefully? No. I already told you when you
take that disability benefit, you're gonna lock that permanent amount in for your rest of your life even though at this point
it turns into retirement. So your disability will convert to a retirement benefit at
your full retirement age. You don't get a bump in benefits. I know, I know. I hope this helped you. Thanks for watching. – [Silvia] If you like this video, you might really like
this video. Check it out. And we'd appreciate if you
Subscribe to our channel so you never miss a great video. We put out one every week. Check in the description
below this video for a link to our cheat sheet on Social
Security and Medicare.
And you can also give us a comment If you have a specific question, always feel free to call us or email us at "The Medicare Family..
Read MoreThe Truth About When You Can (AND SHOULD) Stop Saving for Retirement
Harvey 0 Comments Planning your Retirement Retire Wealthy & Wise Retiree Tips and Tricks
when should you stop saving for retirement today
we're going to talk about when you should call it quit and start spending your hard-earned money
hey there it's Anthony and Matt from one degree advisors and we help you gain confidence in
your retirement so Matt if you Google the term retirement I mean you're sure to find millions
of articles on saving as much as you can for retirement but there's not a lot about when to
stop saving for retirement yeah and the biggest fear that most folks have out there is actually
running out of money and we know that saving is the best way to combat that risk but it comes
at a cost right and really where people run into trouble is skewing too far in either direction and
I want to share a surprising study that shows that big Savers are actually not spending enough in
retirement and this study looks at the spending habits of retirees during their first two decades
of retirement and the results aren't what you'd expect from retirees they're not actually blowing
through their nest egg they're doing the opposite so I'll just share three highlights here the
average retiree with 500k or more at retirement spent less than 12 percent of their nest egg
Within first 20 years of retirement people with a pension spent the lease on their portfolio without
assets down an average of just four percent and the meeting household in the study simply
spent from the income and dividends and didn't touch principal in their portfolio you know they
say the best Savers are the worst Spenders and the data does show that and I'll add one more
point of the study but on the contrary basically individuals with less than two hundred thousand
dollars in assets immediately before retirement had spent down about one quarter of their
non-housing Assets Now many people would think hey this is a good problem to have but you do have
to ask the question you know are you depriving yourself if you save up this money and then don't
don't spend it so how does a retiree shift their mindset from saving to spending yeah and it's
scary you worked your entire life you know building up to this moment and now you're shifting
to a point where you need to start using some of your life savings that cover most of your expenses
and here's the most common sign we often see for people and why they don't stop working and saving
even though they financially can number one you don't know what you're saving for anymore right
so if you're at the point where one step forward keeps moving the goals the goal post two steps
ahead it's it's a never-ending cycle in other words if you're stuck in the accumulation mindset
it's really hard for people to to shift to that decumulation mindset yeah and this is commonly
commonly a result of just not having a plan not knowing really where you're going the other part
of it too is you know we work for such a long time frame our identities can really get wrapped up in
our work you know and you go from not being Dan the lawyer or Susan the engineer you know to now
being a retiree that maybe moves on to the next phase of life and that could include spending
that hard-earned Nest Egg exactly and here and here's really where you can start thinking about
pursuing those passions outside when you can stop saving here number one is when you have a plan
in place right having a plan in place is great because then you know you can have a reasonable
level of confidence going into retirement and having a plan you've taken a critical look look
at your numbers and things check out you know like look at 2020 did did people have that pandemic in
their in their financial plan most people didn't it's a lot of things that you just can't control
and this is where you know good financial advisor good financial plan can come in and and help so
many people you know left to their own accord aren't going to necessarily have that same sort
of confidence going into retirement these are not easy things to figure out we posted a video
previously just addressing that question how much money is enough we'll go ahead and post
that and people can link to it again this is Anthony safer with one degree advisors if you'd
like to learn more how we can help you plan for retirement and gain confidence visit our website
at onedegreeadvisors.com forward slash get started
Planning for Your Retirement with CPF – Part 1 (Growing Your Savings)
Harvey 0 Comments Planning your Retirement Retire Wealthy & Wise Retiree Tips and Tricks
Hi everyone, I'm Caroline from CPF Board and today I'll be sharing how you can plan your retirement with CPF. Your CPF helps you to be ready for your golden years by supporting your three retirement needs. Home Ownership, Healthcare Financing and Retirement Income. Let's start with Home Ownership. For greater peace of mind, your home should preferably be fully paid out so you don't have to worry about the mortgage or interest going up.
It can also be used to supplement your retirement income by renting out your flat partially or fully. Another option to monetize your flat is by moving into a 3-room or a smaller flat for the Silver Housing Bonus or selling part of your lease back to HDB through the Lease Buyback Scheme. The proceeds are then topped up to the retirement account savings to enjoy lifelong retirement payouts through CPF LIFE. Next, Healthcare Financing. As you grow older, chances are you're likely to spend more on your Healthcare needs. This is where MediShield Life comes in to provide health insurance to help pay for your large medical bills. You can also tap into your MediSave savings to help pay for your healthcare expenses. Last but not least, Retirement Income. Apart from housing and healthcare, your CPF also provides you with a steady stream of monthly income to help pay for your daily expenses like food, transport as well as savings that you can withdraw for more immediate needs.
Speaking of which, how much do you think you need every month for your retirement and how long should your payouts last? So we know how much we have saved but we do not know how long our savings need to last because nobody can predict how long we can actually live. Spend too little and we might deprive ourselves from fully enjoying our hard earned savings during our lifetime. Spend too much and we might not have enough for our retirement if we live longer than we thought. Have you heard about CPF LIFE? CPF LIFE is a national longevity insurance annuity scheme.
It insures you against running out of your retirement savings by providing you with monthly payouts no matter how long you live so you don't have to worry. At 55, a Retirement Account will be created for you using your Special Account savings first and then your Ordinary Account savings to set aside your retirement sum. This sum is used to provide you with monthly payouts no matter how long you live from your payout eligibility age, which is currently 65 years old. You will be automatically included in CPF LIFE if you are a Singapore Citizen or Permanent Resident and have at least $60,000 in your CPF Retirement Account when you start your monthly payouts.
If you're not automatically included in CPF LIFE, you can still join anytime between age 65 and 80. All you have to do is to choose one of the CPF LIFE plans when you're ready to start payouts anytime from age 65 to 70. If you do not choose a plan before age 70, we'll automatically start your payout under the CPF LIFE Standard Plan. So how much do you think you need in your
Retirement Account to achieve your desired monthly payouts? Think about how much you need for basic expenses in retirement. If you want monthly payouts of about $1,400, you need about $285,000 in your Retirement Account at 65. For monthly payouts around $2,100, you need about $425,000 in your Retirement Account at 65. As you can see, your retirement payouts are determined by the retirement sum which is the amount of savings that you set aside in your Retirement Account. Now these figures may look huge at age 65, but the good news is with attractive CPF interest rates, you only need to set aside a lower sum at age 55.
This is why at 55, we set aside your Full Retirement Sum, or FRS. Take for example the current FRS of $192,000. With the power of compounding and attractive CPF interest rates over 10 years, this amount will grow to about $285,000 in your Retirement Account at 65 and gives you monthly payouts of $1,400. If you do not have the FRS, there is no need to top up. It just means that you have lower monthly payouts. At this point, you may also be wondering if your CPF savings can be withdrawn for more immediate needs.
From age 55, you can withdraw up to $5,000 from your Ordinary and Special Accounts, and you can withdraw more after you set aside the Full Retirement Sum. Your Full Retirement Sum can be set aside fully in cash, or you can just set aside the Basic Retirement Sum if you own a property. You can make as many withdrawals as you like from your withdrawal savings so there's really no need to take everything in one go. Do note that if you set aside a lower retirement sum in cash, your monthly payouts will also be reduced. Let me now share with you three tips on how you can enjoy higher monthly payouts in retirement no matter how long you live. #1, reduce your CPF outflows. #2, retirement sum topping-up. #3, defer your CPF payouts. Let's start with reducing your CPF outflows. Your CPF savings earn good interest and the government pays extra interest to help enhance the retirement savings of Singaporeans.
If you're below 55 years old, you enjoy an extra 1% per annum on the first $60,000 of your combined CPF savings, capped at $20,000 for Ordinary Account. If you're 55 years old and above, you get an extra 2% per annum on the first $30,000 and an extra 1% per annum on the next $30,000 of your combined CPF savings. This means that you can effectively earn up to 6% per annum on your CPF retirement savings from age 55. To maximise the interest you can earn, you can consider reducing your CPF outflows. To reduce outflows from your Ordinary Account, you can consider paying off your monthly mortgage before you retire or using cash to fully or partially service your loan. Secondly, think twice before using your Special Account savings for investments.
Unless you are quite sure that your investment returns can exceed 4% per annum, you might want to leave your savings in the Special Account which can earn you a minimum of 4% per annum. Lastly, you don't have to take out all your withdrawal savings at one go. At any time after 55, you can choose to withdraw your savings partially or fully and as frequently as you like. With PayNow, the savings that you withdraw will reach your bank account almost instantaneously. If you do not have an immediate need, you can choose to leave your CPF savings in your account to continue earning attractive interest of up to 6% per annum instead of leaving it in a bank account with lower interest rates.
Tip #2, boost your retirement savings through cash top-ups or CPF transfers. To enjoy higher payouts, you can consider topping up to your CPF Special Account if you're below 55, or Retirement Account if you're 55 and above. You can top up your Enhanced Retirement Sum if you are 55 and above or the Full Retirement Sum if you're below 55. You can view the amount of Full Retirement Sum and Enhanced Retirement Sum in the description box below. For cash top-ups to yourself, you can also benefit from a tax relief of up to $8,000. Do note, the top-up monies is purely for the purpose of building up your retirement savings and increasing your monthly payouts. Therefore, they cannot be withdrawn in a lump sum. In addition, cash top-ups from the Full Retirement Sum to the Enhanced Retirement Sum do not attract tax relief. Another option is to transfer your monies from the Ordinary Account to the Special or Retirement Account to earn higher interest. Now, do plan carefully before making such transfers as they are irreversible. Ensure the monies that you transfer are not needed for other purposes such as your housing instalments. Please also note, that there is no tax relief for CPF transfers.
After taking care of your own retirement needs. you can also consider helping your loved ones. For spouse, parents and grandparents, you can transfer your Ordinary Account savings after setting aside your Basic Retirement Sum. For your other loved ones, you can transfer your Ordinary Account savings after setting aside your Full Retirement Sum. So if you're making cash top-ups for yourself, you can enjoy tax relief equivalent to the amount of cash top-ups made, up to $8,000 per calendar year. If you're also making cash top-ups for your loved ones, parents, parents-in-law, grandparents, grandparents-in-law, spouse and siblings, you can enjoy additional tax relief of up to $8,000 per calendar year. That's $16,000 in total. For those who have yet set aside the Basic Retirement Sum from age 55 to 70, the government launched the Matched Retirement Savings Scheme in 2021 to help boost your monthly payouts in retirement. You'll get a dollar-for-dollar matching grant from the government for any top-ups received in your retirement account if you are eligible, up to an annual cap of $600.
The top-up can be made by anyone including yourself. This scheme will first run for five years from 2021 to 2025. The intent of this scheme is to help senior Singaporeans who have yet to set aside the Basic Retirement Sum to help build up their retirement savings for more monthly payouts in retirement. Besides MRSS, the government has put in place other schemes such as the Silver Support Scheme and Workfare Income Supplement Scheme to provide greater assurance for seniors. For more information, you can check out the description box below. While you can start your CPF payouts from age 65, you also have the option to start your payouts later. Under CPF LIFE, for each year that you defer, your monthly payouts will increase by up to 7%. Thank you for watching, I hope you found it useful! Please remember to subscribe to our channel to catch part 2 of our Planning Your Retirement video on CPF LIFE..
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