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

Thursday, 14 July 2016

What happens if my OA+SA is below BRS?

Today, we could like to address this question:

What happens if my OA+SA is below the BRS?


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1) You do not need to personally top up your CPF accounts with your cash to reach your BRS

2) No penalty involved if you fail to meet your CPF BRS

3) It is not compulsory for your to meet your CPF BRS

*4) You will still be eligible to join CPF LIFE and receive a monthly payout when you reach the payout eligibility age.
There is a amount that will automatically make you participate in a CPF LIFE plan.
However, if you fall below the amount and wish to join CPF LIFE, you would need to submit an application to CPF to join.

Join CPF LIFE Turn 55 between 1 Jan 2013 to 30 Apr 2016Turn 55 on 1 May 2016 and after
Automatically $40,000 in RA when you reach 55 NA
Automatically $60,000 in RA when you are near your payout age $60,000 in RA when you are near your payout age
via Application Fail to reach the above requirements Fail to reach the above requirement

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BRS: Basic Retirement Sum
OA: Ordinary Account
SA: Special Account
RA: Retirement Account

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  1. Does that mean that those who do not apply for CPF life will be able to wihdraw the full sum?
    Or will it be kept inside your RA until you pass away and your children will inherit it.

    Cant seem to find info on this on cpf website.
    Thank you.

    1. Hi,

      Thank you for your question.

      1) You won't be able to withdraw the full sum.

      2) The money in your RA will be used to give you a monthly payout for about 20 years. By the end of the 20 years, your RA should have been depleted fully.

      3) You can apply to join CPF LIFE before you reach 80 so that you will be assured a monthly payout for as long as you live (instead of 20 years).

      Hope this answers your question.
      If you have any more questions, feel free to comment or email us!
      Thank you!

    2. Suppose at 55 my OA + SA + Medisave balance in total is below BRS. Let that balance be $X. I then withdraw $5000 at 55.

      Now, between 55 and 65, I cannot touch $(X - 5000), but does that balance continue to generate interest, and at what rate?

      At 65, how is the monthly payout between 65 and 85 determined?

      This kind of information is almost impossible to get in a precise manner from the CPF website. This is relevant to citizens who worked in Singapore for say a couple of years, and then work overseas thereafter for a long time (and hence have a small amount in CPF but no further).

    3. Yes, (X-5000) will continue to generate interest. By then, your OA & SA will be transferred to your RA, which will get 4% interest. Your MA will stay in MA and continue to generate 4% interest.
      Then at 65, your monthly payout will be determined by how much money you have in your RA by then and which CPF LIFE plan you choose