3 questions about CPF withdrawals from age 55
SOURCE: CPF Board
When you turn 55, a Retirement Account (RA) is created for you. Savings from your Ordinary Account (OA) and Special Account (SA) will be transferred to your RA to form your retirement sum, which will provide you with monthly payouts from your payout eligibility age*. After setting aside your retirement sum, you can withdraw your remaining OA and SA savings.
Here are three common questions that members turning 55 have about CPF withdrawals.
1. How much can I withdraw?
The amount you can withdraw from age 55 depends on how much you set aside in your RA.
If you set aside the Full Retirement Sum (FRS)…
You can withdraw your remaining OA and SA savings.
If you want to withdraw more…
You can set aside the Basic Retirement Sum (BRS) — which is half of the FRS — with sufficient property charge/pledge. You can then withdraw the remaining amount from your RA (excluding top-up monies, government grants, and interest earned in your RA).
If you have less than the FRS or the BRS (with a property)…
You can withdraw up to $5,000 unconditionally.
Below are the retirement sums for those turning 55 in 2019:
| Basic Retirement Sum | $88,000 |
| Full Retirement Sum | $176,000 |
| Enhanced Retirement Sum | $264,000 |
Now, let's illustrate the above with an example.
| Mr Tan turns 55 in 2019 with a fully paid up property. He has $80,000 in his OA and $120,000 in his SA. This means $120,000 from his SA and $56,000 from his OA will be transferred to his RA to form his retirement sum of $176,000. He then has two options: Option 1: Retain the FRS of $176,000 in his RA and withdraw the remaining $24,000 from his OA. Option 2: Set aside the BRS of $88,000 since he has a property, and withdraw $24,000 from his OA and an additional $88,000 from his RA. This means he can withdraw a total of $112,000. |
2. Should I withdraw at 55?
If you feel that there is no immediate need for the money, you can always choose to leave it in your CPF accounts and withdraw it later, at any time after age 55 — partially or in full, and as often as you like as long as you meet the applicable withdrawal conditions.
If you choose not to make a withdrawal, your CPF savings will continue to earn up to 6% interest per year!
While deciding if you should make a withdrawal, you may also want to consider your retirement goals. Keep in mind that withdrawing more now means that you are setting aside a lower retirement sum, which would give you lesser payouts at your payout eligibility age*. So plan accordingly to decide if you want more now or leave more for your future.
3. How do I make a withdrawal?
About 6 months before your 55th birthday, you will receive a letter from the CPF Board with information on your options. If you wish to make a withdrawal, you can either:
a. Complete the hard copy "Application for CPF Withdrawal for Members 55 and Above" form and mail it to CPF Board; or
For more details on how you can withdraw your CPF savings, refer here.
Still not sure? Check out the video below for a visual explanation of your withdrawal options!
*The payout eligibility age for those born in 1954 or later is 65.
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