A Guide to Your CPF Withdrawals
The time has come. You’ve reached the age of 55. Ready to withdraw from your CPF savings? Wait just a moment though, before you set out to do that, here’s what you need to understand about withdrawing from your CPF.
Some confusion often occurs among many Singaporeans and Singapore Permanent Residents about just how much money they can withdraw at the age of 55. Often, they are unfamiliar about what might happen to the various CPF accounts under their name once they hit the 55 milestone.
Let’s clear that confusion up, shall we?
Understanding Your CPF Account
Your CPF account is known as your CPF Retirement Account, and this account will be created only when you have reached your 55th birthday. Once you’re turned 55, the CPF Board will then work to transfer your savings from your Special Account (SA) and Ordinary Account (OA) to your CPF Retirement Account, which forms what is known as your retirement sum.
Your money will continue to remain in your Retirement Account and earn interest until they are withdrawn for the CPF LIFE, which is when you choose to start your monthly pay-outs. These monthly pay-outs can take place between the ages of 65 and 70. These CPF LIFE (Lifelong Income For the Elderly) will dispense these monthly pay-outs until the time of your death.
The amount you receive each month would depend on how much you have accumulated in your Retirement Account from the time you joined CPF LIFE, which is at the age of 65 and upwards.
For the CPF members who are born in 1958 or after, they have the option to withdraw a lump sum of up to 20% of the savings in their RA at their pay-out eligibility age, and this includes the first $5,000 that they can withdraw at the age of 55.
So, How Much Can I Withdraw from My CPF at 55?
You can still make a withdrawal from your CPF once you hit 55 if you want to, and the rules for withdrawal are as follows:
- You may withdraw $5,000 or from your OR and SA savings above the full retirement sum or whichever is higher
- Any RA savings which is above the basic retirement sum that comes with sufficient property pledge.
How Do I Make a Withdrawal?
There are three ways in which members of the Singapore CPF can make their withdrawals from:
- By Mail – Members download and fill up FORM RWD-55 Application for CPF Withdrawal for Members 55 and Above and mail it to the Central Provident Fund. If you are residing overseas, you would need to enclose a copy of your bank statement or passbook which is a certified true copy from an official Singapore Overseas Mission with the official stamp and seal.
- Via PayNow Bank Account – This payment option is linked to your NRIC, and the option became available on the 26th of March 2018. You would need to submit an online application using your SingPass via My Requests, and this option is only applicable if you have linked your bank account to your Singapore NRIC under PayNow.
- Interbank GIRO Transfer to Your Singapore Bank Account – You would need to submit an online application using your SingPass via My Requests, and requests for payments can only be made to your POSB, DBS, OCBC or UOB account or any existing bank account in the Central Provident Fund Board’s records. If you are based overseas, supporting documents which are witness or certified true copies by an official Singapore Overseas Mission with official stamp or seal affixed must be submitted along with your application.
The Singapore CPF schemes available to its citizens and Permanent Resident holders have one aim, which is to provide its members with a greater amount of retirement income. Because the objective of the CPF is to provide its members with a lifelong retirement needs, it is suffice to say that the less you withdraw at the age of 55 the better.