Withdrawal from CPF at 55

[royalmix]

From age 55 you can withdraw up to $5K from your Retirement Account without a property pledge/charge.

Thank you for the detailed clarification!

Under normal circumstances, you cannot withdraw any monies from your RA after 55. CPF policies allow you to withdraw at least 5k from OA/SA if you need money and have no monies when CPF transfers from SA/OA at 55 by helping you set aside 5k in OA.

 

[bluezzy]

• 2. Any excess amount will remain in OA and/or SA respectively. This amount can be withdrawn anytime and at any amount from 55 onwards.

Note that withdrawal sequence is SA first then OA.

So if you are shielding SA before 55, withdraw some funds from OA first before you unshield SA. So that you don't have to end up withdrawing from SA for as long as possible.

Find somewhere that earns at least 2.5% to park the withdrawn OA.

Just hope by the time I reach 55, the shielding method can still be used ...

 

[bluezzy]

Under normal circumstances, you cannot withdraw any monies from your RA after 55. CPF policies allow you to withdraw at least 5k from OA/SA if you need money and have no monies when CPF transfers from SA/OA at 55 by helping you set aside 5k in OA.

After 55, I will probably try not to touch the money in RA. Unless during dire situation when I need a huge lump sum, I will likely pledge my property and withdraw out from RA.

Otherwise, will try to survive on whatever is left in my OA and SA as well as the interest generated there.

 

[vsvs24]

Just hope by the time I reach 55, the shielding method can still be used ...

No need to think so much if you are far from 55.

Too many uncertainties...whether shielding allowed....FRS amount for the year you turn 55, interest rate environment then.

 

[hwmook]

considering the inflation now, i feel that MIW perhaps is regretting they release the FRS figures till 2027 so early n they are going to really calculate the FRS increase at at least 4% after 2027.

From 2013, FRS number has increase by 34.3%. Singapore CPI has gone up by 15%. There are a ton of room for inflation to catch up with the FRS increase.

 

[~sabaisabai~]

I think it is allowed eh...up to us to choose. But can only choose BRS if you have a property to pledge.

Purposely opt for BRS cos I don't want a bulk amount of my money to be stuck inside CPF

asked already? allowed?

 

[sohguanh]

After 55, I will probably try not to touch the money in RA. Unless during dire situation when I need a huge lump sum, I will likely pledge my property and withdraw out from RA.

Otherwise, will try to survive on whatever is left in my OA and SA as well as the interest generated there.

I am not sure how old you are in real life. Cpf rules change quite often so unless you are like me a few years to 55 else I think you plan too much in advance.

You already say not going to use cpf invest so will you be setting up family buy HDB ? Then those should be your more immediate concern.

If you intend to remain single forever then why plan so far in advance? Cpf are dead monies for ppl far away from 55. You should focus on other priorities instead. Cpf just leave inside let govt give you interest.

 

[bluezzy]

I am not sure how old you are in real life. Cpf rules change quite often so unless you are like me a few years to 55 else I think you plan too much in advance.

You already say not going to use cpf invest so will you be setting up family buy HDB ? Then those should be your more immediate concern.

If you intend to remain single forever then why plan so far in advance? Cpf are dead monies for ppl far away from 55. You should focus on other priorities instead. Cpf just leave inside let govt give you interest.

hdb already bought I have a spouse but no other dependents

 

[~sabaisabai~]

If I pledge my flat at 55 yrs old, can I still join the HDB lease buyback scheme at 65?
Thanks.

as mentioned polices will keep changing

 

[bluezzy]

askeed already? allowed?

Are you asking me if it is allowed?

I haven't asked CPF but according to experts here, can pledge property anytime after 55 until 1 month before your cpf life payout starts

 

[sohguanh]

hdb already bought I have a spouse but no other dependents

Ok so you settle your hdb loan? Use private bank or cpf? If use cpf then yes maybe need plan a bit. Still I feel you plan too much in advance. E.g who knows FRS reach 0.5 to 1 million when you reach 55 then what you plan now need replan isn't it?

 

[bluezzy]

Ok so you settle your hdb loan? Use private bank or cpf? If use cpf then yes maybe need plan a bit. Still I feel you plan too much in advance. E.g who knows FRS reach 0.5 to 1 million when you reach 55 then what you plan now need replan isn't it?

Nothing's wrong with planning ahead also right? Better than no plan and anyhow spend. Also based on history, FRS is increasing at 3-3.5% so just plan it as such.

 

[jywy2005]

Reaching 55 next year. Officer told me they will invite me to go for a talk 3 mths before my birthday.

Will be shielding SA. Intend to pledge FRS and keep the rest in SA after RA account is formed.


Both SA and RA gives 4% interest, but the latter is locked up until 65yo.

 

[s0crates]

Reaching 55 next year. Officer told me they will invite me to go for a talk 3 mths before my birthday.

Will be shielding SA. Intend to pledge FRS and keep the rest in SA after RA account is formed.


Both SA and RA gives 4% interest, but the latter is locked up until 65yo.

Remember to withdraw money from your CPF OA as well. No point letting it stuck there

 

[jywy2005]

Remember to withdraw money from your CPF OA as well. No point letting it stuck there

Yes, have been using them to buy T-bills. Will fund enough in OA to FRS just before my birthday.

 

[twosix]

Plan and start savings asap, so that one has visibility on the journey to retirement.

 

[s0crates]

Yes, have been using them to buy T-bills. Will fund enough in OA to FRS just before my birthday.

I don't think you get my tip leh. You invest it, tell cpf to close down your cpfis account so when your tbills/investments will be transferred into cash account.

That way cpf will only contains money that is minimally earning 4% interest. Don't need to give chance to cpf one.

 

[jywy2005]

I don't think you get my tip leh. You invest it, tell cpf to close down your cpfis account so when your tbills/investments will be transferred into cash account.

That way cpf will only contains money that is minimally earning 4% interest. Don't need to give chance to cpf one.

I see. Thanks for your advice.

 

[bluezzy]

Reaching 55 next year. Officer told me they will invite me to go for a talk 3 mths before my birthday.

Will be shielding SA. Intend to pledge FRS and keep the rest in SA after RA account is formed.


Both SA and RA gives 4% interest, but the latter is locked up until 65yo.

RA can withdraw amount above BRS (minus interest generated) if you pledge your property anytime between 55 and 65.

 

[Nofear40]

I don't think you get my tip leh. You invest it, tell cpf to close down your cpfis account so when your tbills/investments will be transferred into cash account.

That way cpf will only contains money that is minimally earning 4% interest. Don't need to give chance to cpf one.

Side track
Can you still close your cdp account if you buy shares using SRS? Or will go back to SRS?