Frequently Asked Questions
What is CPF Minimum Sum?
CPF Minimum Sum is the amount of money that CPF members need to set aside in their CPF accounts when they turn 55 years old.
It is intended to provide for their retirement needs.
What happens when I turn 55 years old?
When you turn 55 years old, you will need to decide how to form your retirement account.
One of the options is to set aside the CPF Minimum Sum in your CPF accounts.
What is CPF Full Retirement Sum?
CPF Full Retirement Sum is the amount of money that CPF members need to set aside in their CPF accounts when they turn 55 years old.
It is a higher amount than the CPF Minimum Sum and provides for a higher monthly payout during retirement.
What are SA, OA, and the Special Account?
SA stands for Special Account, and OA stands for Ordinary Account.
These are different accounts within the CPF system where your CPF savings are allocated.
The Special Account earns a higher interest rate and is used for retirement needs, while the Ordinary Account can be used for housing, education, and healthcare.
What is the "raised by 3.5" mentioned in the CPF Full Retirement Sum?
The “raised by 3.5” means that the CPF Full Retirement Sum will increase by 3.
5% each year to account for inflation and to ensure that it keeps up with the rising cost of living.
What are some confusing aspects of the CPF system?
Some confusing aspects of the CPF system include understanding the different accounts (SA, OA, and the Special Account), knowing how much of your CPF savings can be used for housing, and understanding the CPF contribution rates for workers.
Will the retirement sums increase?
Yes, the retirement sums, including the CPF Full Retirement Sum and CPF Minimum Sum, will increase over time to ensure that they continue to provide for a comfortable retirement.
This is to account for inflation and rising living expenses.
What should I do if I am turning 55 in 2023?
If you are turning 55 in 2023, you can choose to pledge your property to set aside the Basic Retirement Sum instead of the Full Retirement Sum.
This allows you to have more flexibility in managing your CPF savings.
How can I form my retirement account?
You can form your retirement account by setting aside the CPF Full Retirement Sum or the CPF Basic Retirement Sum, depending on your preference and financial situation.
You can also use your CPF savings to purchase a CPF LIFE plan, which provides you with monthly payouts for life.
Can I withdraw my CPF savings when I turn 55?
No, you cannot withdraw your CPF savings in full when you turn 55.
However, you can choose to withdraw a portion of your CPF savings up to the CPF Withdrawal Limit, while the remaining amount will be set aside in your CPF accounts for your retirement needs.