Singapore-based financial blog that aims to educate people on personal finance, investments, retirement and their Central Provident Fund (CPF) matters.

Wednesday, 7 October 2015

Fine Print of CPF Money Withdrawal

Everyone knows that when you reach the age of 55, you need to set aside a sum of money in your CPF.
You can start drawing
That sum is known as Full Retirement Sum (FRS, previously known as Minimum Sum)

What is Full Retirement Sum(FRS)?
What is Basic Retirement Sum (BRS)?
Singapore Finance Minister on Personal Finance
Singapore Growing ETF Choices
Raising of Re-Employment Age to 67
How to Escape Minimum Sum?

What you do not know is, there are fine prints to this.

Withdrawal above Basic Retirement Sum (BRS) is only savings - aka money, you contribute in via your salary or voluntary contribution.
*BRS requires you to pledge your property to withdraw the amount in excess of your BFS.

Money that comes from the below options cannot be withdrawn no matter what
1) Interests earned from Retirement Account
2) Government Grants
3) RSTU Top-up Money

However, chances are, the sum of all 3 money most likely will never reach half your FRS amount. Thus this is actually not too big a concern - BUT, it is good to know if you happen to be the special 0.1%

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