CPF Annual Report 2023 had just been released!
Below are the highlights from CPF Annual Report 2023.
CPFB | CPF members by regrossed balance and age group
Value Investing for Dreams
CPF Annual Report 2023 had just been released!
Below are the highlights from CPF Annual Report 2023.
CPFB | CPF members by regrossed balance and age group
My dad is aged 75 this year and he has not withdrawn a cent from EPF but my mum did, she is aged 74. Both are still healthy and able to walk and drive car by themselves. That's very good!
EPF is like Singapore's CPF. He simply does not need to touch the EPF as he has other means of retirement income and EPF gives good interest rate. It was 5.5% last year.
On May 28th, 2024, my tenants confirmed (through my property agent) that they were not going to renew the rental contract which will end on July 31st, 2024.
On June 10th, 2024, my property agent had found new tenants for me. They will start the tenancy on August 1st, 2024. Perfect. The new monthly rental is S$4,000, an increase of 8.11%. It's a 4-room HDB flat.
On June 13th, 2024, I had received one month faith deposit (security deposit)!
My property agent is simply amazing.
She always does a good job. I am very happy to pay full commission to her too. :)
From year 2022 to 2024, my rental had increased 86.05%.
Rental yield now is 13.52%.
Revision 02: May 12, 2024
The CPF OA deduction (for T-bill application, Auction Date: May 9, 2024) happened on May 10, 2024.
We finally received the 6 months T-bill on the maturity date (April 30th, 2024).
We did CPF refund through internet banking on April 30th and the funds were reflected in our CPF OA account on May 2nd.
It took me a while to recall how to calculate the maximum amount of Additional Wage (AW) subject to CPF contribution for the year. As there are many changes in CPF for the next 3 years, I would like to pen down the information before I forget again.
The CPF Ordinary Wage ceiling had been increased in September 2023 and January 2024.
Hence, the total CPF contribution (37%) had been increased from S$2,220 to S$2,331 and S$2,516. It will continue to increase to S$2,738 in year 2025 and S$2,960 in year 2026.
CPF Ordinary Wage ceiling is Singapore happy index. So, the new Singapore happy index will be S$8,000 a month. :)
The CPF annual salary ceiling remains unchanged at S$102,000. This is my bet, the CPF annual salary ceiling shall be increased in year 2026, let's see.
For year 2024, if your monthly salary is S$6,800 and above, the CPF system will automatically calculate in the following:
S$6,800 x 12 months = S$81,600
As CPF annual salary ceiling is S$102,000, you left the balance of:
S$102,000 - S$81,600 = S$20,400
The magic number S$20,400 is applicable to every CPF members if you earn monthly S$6,800 and beyond.
As my company always gives bonus in April, the maximum amount of Additional Wage (AW) that will attract CPF contribution will only be S$20,400. That says, even if your bonus is S$30,000 or S$50,000, it will still cap at the maximum CPF contribution at S$20,400.
S$20,400 x 0.37 = S$7,548 (maximum allowed additional wage CPF contribution)
+ S$6,800 x 0.37 = S$2,516 (maximum allowed monthly CPF contribution)
= S$10,064 (that's the maximum CPF contribution you see in the bonus month).
Thereafter, your 13th month bonus given in December will not attract any CPF contribution too!
In addition, you have reached the maximum tax relief of S$20,400 under personal reliefs category of Providend Fund/Life Insurance.