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

Tuesday, 23 February 2016

4 Things to know about Withdrawing Money Out of CPF

16:17 Posted by cheez 4 comments
We all know that we can withdraw some of our money from CPF upon reaching the age 55, but do you know there are some things you should know about it?

MORE LINKS
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CPF +1% Interest for those age Below 55

1) Withdraw $5,000 at age 55
If you turn 55 in year 2016 and after, you may withdraw up to $5,000 from your CPF OR amount above the Full Retirement Sum (FRS).
You can also withdraw from your Retirement Account amount above the Basic Retirement Sum (BRS) if you have sufficient property charge.

2) Let it Grow~ Let it Grow
Should you decide not to withdraw money from your account when you reach 55, the money will continue to grow and earn interest inside your CPF!
You can also use the money to finance your housing loan or other approved purposes.

3) Withdraw Money Bit by Bit
You may choose NOT to withdraw the whole withdraw-able amount out at one go.
If you have $5,000, you can choose to withdraw $2,000 first, and subsequently withdraw the rest on another occasion.

4) Withdraw Money any time after 55th Birthday
You may withdraw the excess money any time after your 55th birthday.
You can submit an application at any time to withdraw your savings and CPF Board will assess the request.


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4 comments:

  1. Your point 4 is not correct. Have you verify with CPFB?

    ReplyDelete
    Replies
    1. Hi,

      Thank you for your comment.
      We have actually verified with CPF.
      The information that we have presented is actually correct.
      Thank you.

      Cheez

      Delete
  2. Interesting post, most people wouldn't know much of these stuff or care about it until they approach 55. This info is good for those who want to find out early.

    Some interesting points I would like to share:
    -If you work after 55, contributions to OA and SA can also be withdrawn, the same rules as above apply
    -If you think about it after 55 we can use CPF like a bond portfolio. We can leave the extra amount in our CPF, and only withdraw the interest every year. So it looks like we get periodic payouts from 55 (though it is once a year)

    ReplyDelete
    Replies
    1. Hi LC,

      Thank you for your comment.
      You really pointed out 2 good points out there.
      We do think that our CPF is actually a pretty good bond portfolio for retirement (we actually have a post about it too).
      Thank you for sharing this 2 interesting points.
      We will be sharing the 2 points probably in another blog post to share this piece of news to our readers!

      Thank you

      Cheez

      Delete