Withdrawing CPF Savings
When you turn 55, you are eligible to withdraw the savings in your CPF Account once you have set aside your Basic Retirement Sum (BRS) or Full Retirement Sum (FRS) having enough property pledge/charge in your Retirement Account (RA). There is no need for you to create a Retirement Account, once you turn 55, it will be created for you au*tomatically.
If you wish to know how much you can withdraw from your CPF savings upon turning 55, you can use the CPF Withdrawal Calculator to get an estimate of the same.
Retirement Sum – Why is it important?
The amount that you set aside in your Retirement Account that will be used to provide you with monthly payouts when you reach your payout eligibility age is called a Retirement Sum. The payout eligibility age has currently be set at 65 years. The amount that you need to save in your Retirement Account varies depending on your cohort.
Table 1: Retirement Sum Applicable to members turning 55 between July 1, 2003 and 2015
|Turned 55 on or after||Full Retirement Sum|
|July 1, 2003||S$80,000|
|July 1, 2004||S$84,500|
|July 1, 2005||S$90,000|
|July 1, 2006||S$94,600|
|July 1, 2007||S$99,600|
|July 1, 2008||S$106,000|
|July 1, 2009||S$117,000|
|July 1, 2010||S$123,000|
|July 1, 2011||S$131,000|
|July 1, 2012||S$139,000|
|July 1, 2013||S$148,000|
|July 1, 2014||S$155,000|
|July 1, 2015||S$161,000|
Withdrawing from your CPF Account
How much you can withdraw from your CPF Account depends on the Retirement Sum that you have saved and the cohort that you belong to.
- You can withdraw your savings from your Ordinary Account (OA) and Special Account (SA) after you have set aside the BRS or FRS applicable to you having sufficient property pledge/charge OR
- Depending on your birth year and if you have set aside any BRS or FRS, the amount you can withdraw from your Ordinary Account and Special Account are as follows:
- If your birth year is before 1954 - 50% of the savings.
- If your birth year is 1954 - 40% of the savings.
- If your birth year is 1955 - 30% of the savings.
- If your birth year is 1956 - 20% of the savings.
- If your birth year is 1957 - 10% of the savings.
- If your birth year is after 1957 - Ip to S$5,000 worth savings.
Your options after setting aside the applicable BRS or FRS
After you have set aside your applicable BRS or FRS with sufficient property pledge/charge, you have two options on what you can do with the balance of your savings:
- You can withdraw the balance of your savings in your CPF Account. This amount will not include any top-ups, government grants or any interest that your savings have earned in the Retirement Account.
- You can choose to continue keeping your savings in your CPF Account to earn further interest.
CPF Withdrawal – Making the Right Decision
Making a decision regarding retirement is never an easy one. Understanding the dilemma that you may face when you are reaching 55 years of age, the CPF Board organizes talks in Singapore for members turning 55 every year. The talks cover all facets of CPF from planning your retirement to planning for your healthcare needs, purchasing your home and so on. You can register for these talks on the official CPF website. Furthermore, you can also read the CPF Retirement Booklet available on the official CPF website for more information on your options.
Additionally, when you are nearing 55 years of age, the CPF Board will send you a “Reaching 55 Package” to help you ease the process of retirement.
Withdrawing your CPF savings
If you have chosen to withdraw the balance of your CPF savings, you have the option of receiving your money through one the following ways:
- Inter-Bank GIRO to your bank account in Singapore.
- Telegraphic Transfer to your bank account overseas.
To receive your CPF savings at the earliest, make sure that you submit your application for withdrawal a minimum of 7 days before you turn 55. This is will ensure that you receive your savings within 2 business days after your birthday in your Singapore bank account.
Is it mandatory to withdraw CPF Savings at 55?
No. CPF Withdrawal is an option, not a mandate. As in, you can choose to withdraw your CPF savings when you turn 55 years of age. However, you can also choose not to. If you decide to not withdraw your savings, they will continue to earn attractive interest and help in maximizing your savings for a more enjoyable retirement.
Furthermore, you can also choose to withdraw a partial amount of your CPF savings as opposed to the whole amount. You can make partial withdrawals of your savings as and when you need money.
Are there any benefits of not withdrawing CPF Savings at 55?
Absolutely. There are plenty of benefits if you choose not to withdraw your CPF savings at 55.
Attractive Interest Rate Structure:
Currently, CPF accounts earn an interest rate of 5% p.a. If you have low balance in your CPF Account, your account can earn interest of up to 6% p.a. For a better understanding on what interest your savings can earn in various CPF Accounts, find below the current interest rate structure for your CPF Account:
- CPF OA or Ordinary Account – 2.5% p.a.
- CPF SA or Special Account/ Medisave Account/ Retirement Account – 4% p.a.
- First S$60,000 worth Cumulate CPF Balances: Additional 1% p.a.
- 2016 Onwards: First S$30,000 worth Cumulate CPF Balances for 55 years+ of age: Additional 1% p.a.
Use Ordinary Account Savings to Make Payments on your Housing Loan:
After you turn 55, if you still have payments to be made on your housing loan, you can do so by continuing to use the savings in your Ordinary Account for your housing loan payments. All you need to do is apply to the CPF Board to reserve some of the savings in your OA before they get transferred to your Retirement Account. However, if you choose to apply to set aside savings in your OA for this purpose, the Retirement Sum that will be set aside in your RA will be reduced.
Use your CPF Savings for Education and Investment:
If you have already set aside your applicable BRS or FRS having sufficient property pledge/charge, then you will become eligible to withdraw your investments under CPFIS or CPF Investment Scheme as well as the SDS or Special Discounted Shares Scheme. If you choose this option, then the repayment on your CPF savings for education will be waived. If not, then you will need to make a top-up on your Retirement Account and meet the requirement first.
Applying for CPF Withdrawal
There are 2 ways to apply for withdrawing your CPF Savings:
- Online – myCPF:
- Login to the CPF website using your SingPass.
- Navigate to “My Requests” and submit the online application for withdrawal.
- If you are applying online, payment will only be made to your POSB (does not include DBS), OCBC or UOB account or any existing bank account in the CPF records.
- Download the form, “FORM RWD-55: Application for Withdrawal for Members 55 and Above”.
- Complete the form and mail it to the Central Provident Fund Board.
- If you are not in Singapore anymore (overseas), then if needed, you will have to include photocopies of your bank statement or passbook certified by an Official from the Embassy of the Republic of Singapore/Singapore High Commission or a Notary Public containing an official stamp/seal duly affixed.
At the end of the day, the money in your CPF Account is yours and you can choose what you want to do with it. You can withdraw the balance upon reaching 55 years of age, however, if you decide to continue keeping it in your CPF Account, you are guaranteed to earn attractive interest rates. You also have the added advantage of using this amount in the future to make payments on your housing loans, education, investment and much more.