Ultimate Guide To CPF Retirement Sum Scheme & Withdrawal Rules


Now we are sure that most of you are going to agree that the CPF Retirement Sum is something that everyone should have a clear understanding of, but would you believe me if we were to tell you that there are so many people out there who do not actually know the first thing about it.

In fact, there are almost as many people who have no idea about the CPF Retirement Sum as those who actually do.

Fortunately for you, we are here today in order to give you a much better understanding of the CPF Retirement Sum, giving you answers to those questions you have been asking for so long.

You want to know the CPF minimum sum? We have that covered.

You want to know the CPF withdrawal age? We have that covered too.

In fact, we have no doubt at all that, once you have finished reading this article, there will be nothing you don’t know about the CPF Retirement Sum.

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All and every single question you have ever had about this subject will get answered here and we promise you will have no questions left at the end. So, let’s get to it…

What is CPF Retirement Sum?

What is CPF Retirement Sum

Now, the first and most obvious question which people are going to ask is, of course, “What is CPF Retirement Sum?” And it really is quite shocking to learn that there are so many people who have absolutely no idea at all.

Of course, they know that it has something to do with getting money when they retire but they are still not 100% sure of what it really means.

It really is a very simple answer, as your CPF retirement sum is simple the amount that you have decided to put to one side for you retirement savings, which will go directly into your retirement account.

This will lead to you being paid a monthly amount from your retirement account, once you reach the required age. This will continue to happen up until that set amount in your retirement account has been reached and there is no longer any money left.

With that in mind, you really do need to think long and hard about your budget, from how much you can afford to put into your retirement account each month, to how much you need to have as a total amount.

This will give you a much better understanding of how much you are going to receive each month, once you hit retirement age, and exactly how long this fund is going to last for.

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More CPF to be withdrawn with the removal of Medisave Minimum Sum

Health Check

While we have already had a little fun at other people’s expense, due to them having no idea what their CPF retirement sum is. This next point is actually one which we are not surprised people are not aware of.

Now, we have no doubt that a lot of you will be familiar with what the Medisave Minimum Sum is. But were you aware that it has now been done away with and nobody needs to worry about it any longer.

Before January 2016, the amount of your CPF withdrawal was actually much less than it has been since the abolishment of the medisave minimum sum.

It has been over three years now since that happened and you can now make a much bigger CPF withdrawal, than you could before, with that CPF withdrawal limit being expanded.

Of course, there are still certain CPF withdrawal rules which you will have to adhere to, but we will touch on that later.

All you need to remember for now is, with the abolishment of the Medisave Minimum Sum, back in January 2016, there is now more CPF to be withdrawn.

How much can you withdraw from CPF at 55 years old?

How Much Would I Need To Set Aside When I am

Those of you who are familiar with what the CPF retirement sum is, will be very aware of what the CPF withdrawal age is but, for those of you who want to know more, it is quite clear from the heading that the official CPF withdrawal age is 55 years old.

Now that you know the age you will need to be in order to start making your withdrawals, the next thing you are going to need to know is, exactly how much the CPF minimum sum is and how much you are allowed to withdraw.

This is actually a bit more complicated than just being able to withdraw a single number, which is the same for everyone. This is because different people decide to go down different routes and go with different accounts.

Once you hit the age of 55 years old and wish to start making a CPF withdrawal, you will be able to withdraw from either your ordinary account, your special account or both, depend on the CPF withdrawal limits you fall under.

The most simple and basic way to sum all of this up would be to state the most common and easily understandable version of this answer.

So, once you reach the CPF withdrawal age, in the majority of cases you are going to be able to withdraw a monthly amount which is relation to your retirement needs.

This is in order to make sure that your retirement account does not run dry too soon, but also to make sure that you give yourself enough money to enjoy your retirement years.

The best way to find out the amount you will be able to withdraw, is to find out the details of your retirement account, from how much you put in each month, to how much will be there when you retire, and how long it can last once you retire.

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So, How Much Would I Need To Set Aside When I’m 55?

withdraw CPF

Next up we are going to talk to you about the amount you are going to need to set aside when you reach that CPF withdrawal age.

Well, once you do reach the grand old age of 55 years old, both your ordinary account and special account savings are going to be brought together and deposited into your retirement account.This will then make up your new retirement sum.

As well as that, if you are gaining any form of refund due to the CPF which was withdrawn for housing, then this too will be added into your retirement account.

It can sometimes be seen as being a good idea to put to one side a bigger amount of money for your retirement sum, all the way up to your enhanced retirement sum.

This is done by filling up the Retirement Account by using the money which is still left over from your ordinary account and your special account by way of the retirement sum top up plan, also known as the RSTU.

Once you have then put to one side your choice of the basic retirement sum or the full retirement sum, with an acceptable property pledge, then you are now able to decide to withdraw any of the money which is left in your special account and your ordinary account.

If you are not interested in withdrawing any of that left over money, then you can just leave it where it is, in order to grow an impressive interest amount.

Retirement Sum will increase over the years

CPF Usage

We can already see the smile crossing over your faces and hear the joy in your voice as you read that heading. Everybody loves to hear that they are going to be able to see their retirement sum getting bigger and bigger over time, and there is no denying that this is going to happen.

The increase in the CPF retirement sum over time is going to have an impact on everything else, including the CPF withdrawal rules, the CPF withdrawal limit, the CPF minimum sum, and much, much more along the way.

While this all might sound like great news, since you can now understand that you are going to get more money available to you as your CPF retirement sum increases, there are actually a few drawbacks which you are going to be aware of.

Yes, you are going to see your CPF retirement sum increasing over the years.

And yes, this does mean that you are going to have more money when you retire.

However, one of the most important things that you are going to need to know about your retirement sum, is the fact that the retirement age is also going to change as the years pass by.

We have already seen the age of retirement going up in other countries all over the world and there is no doubt that this is also going to happen in Singapore, mostly due to the fact that the average life expectancy of a person living in Singapore continues to get older.

Unfortunately, it seems like we are going to get punished for living a happier, healthier and longer life.

Changes to Payout Eligibility Age

Changes to Payout Eligibility Age

So, since we mentioned above that there is likely going to be an increase in the CPF withdrawal age, since we are all as a nation beginning to lead more active and healthy lifestyles, we have to take a few things into consideration.

Yes, the average life expectancy for a person who is living in Singapore is increasing but, while many see that as a sign that things are going to change, there is nothing yet set in stone.

Something that we need to bare in mind here, is the fact that the payout eligibility age was set to 65 back at the beginning of 2018, so it would not make any sense for them to go and change it again so soon.

No, we cannot say for certain that it will not change again at all, and the liklihood is that it will increase in the future. But for now, the payout eligibility age is currently 65 years old there are no plans currently in motion to change that.

So, once you hit the ripe old age of 65, you can go ahead and start receiving those ever so important retirement payouts.

With all that said though, if you are a young worker who has only just started your journey in the real world, then be prepared for change along the way.

We are very confident that we can say that, during your lifetime, before you reach your retirement age, the whole world is going to be a lot different, and that includes the CPF retirement sum.

Can you rely on CPF Retirement Sum scheme to retire?

Retirement Sum will increase over the years

Now this is a question that we should ask ourselves from time to time, because life is too short to just run the risk. As we said earlier, everyone is different and we all have different circumstances which we need to think about.

Since each person is different and has their own unique things going on in their life, that means that the answer to this question is going to vary from person to person. So here are a few things you will need to think about, before deciding the best answer for you.

The first thing you are going to need to think about is, just how much money you can afford to put to one side, yet still be able to live a comfortable and happy life while you are working.

It is important that you do not put aside too much to leave yourself short but also important that you put enough to one side to make sure you are comfortable in your retirement years.

Which brings us to our next point. You need to have a good idea of how much money you are going to need to live on, once you finally do retire.

As with putting money aside in your younger years, you are going to need to make sure you have enough to enjoyable a comfortable life, while not needing too much so that you run out of your retirement fund too soon.

So the answer to this question is. If you believe that you have enough money to put aside a big enough amount to make sure that you are going to be able to live comfortably for the rest of your life, then yes, you can rely on CPF retirement sum scheme to retire.

However, if you feel that you are going to leave yourself short and struggle from month to month, then you really do need to consider another alternative, either completely away from CPF or alongside it.


CPF contact us

So there you have it. It does not matter whether you are someone who has been a CPF member for many years, or someone who is only just looking into it, considering becoming a member in the near future.

It really is important that you make sure that you know all of the ins and outs associated with the CPF retirement sum. Read the information and then read it again, just to make sure that you have it all drilled into your mind.

If you do not know everything you need to know about your CPF retirement sum, then you really are going to struggle when it matters.

Get yourself familiar with it and make sure that you are able to relax, safe in the knowledge that you are going to be able to live a happy and comfortable life, once you have retired.

Now, if there is anything else you need to know or anymore details you think we might have missed, well, we are obviously going to be very surprised about that.

But, if you really do have any more questions which you want answered about your CPF retirement sum, then please do get in contact with us and we will be sure to settle any worries you might have.

For now though, take a read through all of the information we have compiled for you here, and even take a look around to see if you can find anything more solid you might need. But one thing is for certain, you NEED to know all there is to know about your CPF retirement sum.


Good luck and God bless.

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