At the age of 55, monies in my CPF Ordinary Account (OA) and Special Account (SA) will be transferred to my newly-created Retirement Account (RA).
What happens if I continue to work and make regular contributions to my CPF OA and SA?
Can my additional contributions be transferred to my RA to increase my CPF LIFE payout when I reach 65 and beyond? Will I be able to withdraw the additional funds at the age of 65?
When you continue to work at the age of 55 and beyond, it is still mandatory for your employer and yourself to make CPF contributions, though at reduced proportions compared to your early years.
Contributed monies in your CPF OA and SA (and MediSave) will continue to earn risk-free interest. You can keep your OA funds if you wish to use it to service your monthly housing repayments, or withdraw the funds if you need it.
Alternatively, you can also make transfers from your OA/SA to your RA under the Retirement Sum Topping-Up Scheme up to the current Enhanced Retirement Sum (ERS), This allows you receive higher CPF LIFE monthly payouts for life.
Have a question?
I have a question regarding interest earned by my CPF monies after joining CPF LIFE. Is it true that our beneficiaries will NOT receive the interests accumulated and that this interest goes back to the common fund for other CPF LIFE annuitants?
Recently, there has been some confusion online on this issue, with some Singaporeans feeling shortchanged.
First of all, we need to understand what happens to our CPF Retirement Account (RA) monies:
At age 65 onwards, our RA monies will be used to “buy” into the CPF LIFE annuity scheme as premium payment. This money is pooled in the Lifelong Income Fund, which is used to provide payouts to all CPF LIFE members.
At no point in time did the CPF Board give any indication that interest earned by monies in your CPF Retirement Account goes into your account and can be left to your beneficiaries.
This has been how the CPF Board has always explained bequests for members on the CPF LIFE Scheme:
In fact, this is one of the differences between the Retirement Sum Scheme and CPF LIFE. In the old Retirement Sum Scheme, interest is paid into our Retirement Account Balances, and this amount is gradually drawn down during our retirement until nothing is left, and payouts stop.
The key thing to remember, is that the original promise of CPF LIFE is still upheld. If we pass on early, our beneficiaries will be receiving at least the amount we put into CPF LIFE, minus the payouts we already received. If we outlive our initial Retirement Account balances, we will still be assured of monthly payouts for as long as we live.
And it is the pooled interest earned from the Lifelong Income Fund is what makes this valuable feature possible.