For Singaporeans, there are a few milestones that are as momentous as reaching the age of 55, since that is the age your CPF Retirement Account is opened and your Special Account is shut. This also marks the earliest time you can withdraw your CPF savings that you have been accumulating diligently and mandatorily for most of your life, in cash.
In 2024, 39,000 members turned 55, and 70.5% of them were able to set aside at least their retirement sum, either the FRS or the BRS with a property pledge.
This also means that besides the minimum of $5,000 everyone can withdraw from their CPF Ordinary and Special Accounts when they turn 55, over 70.5% of members were able to withdraw even more in 2024.
By understanding how CPF withdrawals work, you can make an informed decision on whether you want to withdraw – and how much.
Read Also: Complete Guide To Understanding The “Benefit Illustration” Of CPF LIFE Payouts
Here’s What Happens To Your CPF At Age 55
As a special “Happy Birthday” from CPF, you’ll receive a “Reaching 55” information packet from CPF a few months before your 55th birthday. This includes the opportunity to make an appointment to attend the CPF Retirement Planning Service, a one-to-one session with a CPF staff who will explain the CPF rules that apply to you once you reach 55.
Creation Of Your CPF Retirement Account
Once you reach 55, your CPF Retirement Account (RA) will be created, while your Special Account (SA) will be closed down.
Savings from your Special Account and Ordinary Account up to the Full Retirement Sum (FRS) will be transferred to your RA. Funds in your RA will be drawn to provide monthly retirement income at your payout eligibility age – which is currently 65 for CPF members born in 1954 or later.
If you are born 1958 or after and have $60,000 or more in your RA six months before your payout eligibility age, you will be automatically enrolled in the CPF LIFE scheme, which provides monthly payouts for life. Otherwise, you will be on the Retirement Sum Scheme (RSS), where you will receive monthly payouts until your RA monies run out.
Read Also: CPF LIFE VS Retirement Sum Scheme (RSS): What’s The Difference?
After the Full Retirement Sum (FRS) has been transferred to your RA, you may then withdraw your remaining monies at any time. For higher payouts under CPF LIFE, you may choose to further top up your RA to the Enhanced Retirement Sum (ERS) of $426,000 as of 2025.
Read Also: Here’s What Your CPF Full Retirement Sum Might Look Like When You’re 55
If You Don’t Have Enough For The Full Retirement Sum
If you do not have the Full Retirement Sum in your Special Account and Ordinary Account, you can apply to withdraw your RA savings (excluding government grants, top-up monies, and interest earned) beyond the Basic Retirement Sum (BRS), if you pledge a property you own.
This will also mean you have hit the FRS, through a combination of CPF monies and property pledge.
Read Also: Here’s What You Need To Know About Pledging Your Property To Meet The CPF Full Retirement Sum (FRS)
If You Don’t Have Enough For The Basic Retirement Sum
Even if you do not have enough CPF monies to meet the Basic Retirement Sum, even with property pledge, you can still withdraw up to $5,000 of your CPF OA and SA monies at age 55.
To give you a better idea of how much CPF monies you are eligible to withdraw, you can use this handy CPF Withdrawal Calculator.
Read Also: How Much Should I Have In Savings And CPF To Have A Comfortable Retirement?
Once Your Reach CPF Payout Eligibility Age
CPF members born in 1958 or after have the option to withdraw a lump sum of up to 20% of their Retirement Account savings once they reach their payout eligibility age, including the first $5,000 that could have been withdrawn since they turned 55.
CPF members who are born in 1957 or earlier were able to withdraw up to 10% of their Ordinary Account and Special Account monies when they turned 55. Thus, they were able to withdraw a lump sum of an additional 10% of their Retirement Account monies at the payout eligibility age.
Read Also: [Beginners’ Guide] Understanding CPF LIFE And Your Monthly Payouts When You Retire In Singapore
Should You Withdraw Your CPF?
Obviously, withdrawing your CPF is a personal decision. If you have immediate needs, such as to cope with daily expenses, paying off loans or giving it to your children, then it is a no-brainer.
But if you do not have any immediate use for it, understand that by cashing out your CPF, you’re giving up the opportunity cost of earning good risk-free interest that is unmatched by comparable financial products in the market.
If you withdraw your CPF savings from age 55, you will have less for your monthly CPF LIFE payouts, which commences as early as age 65.
Source: CPF
Some might argue that investing in stocks or placing it in other investments could potentially give you better returns, but you should remember that with your retirement just a few years away, you may not have the time to ride out market volatility. Needing access to cash for your monthly expenses and selling off your investments during a market downturn would be a shame.
Read Also: CPFIS: 5 Reasons Why You Should Not Rush To Invest Your CPF Monies
How To Withdraw CPF Monies?
You can apply to withdraw your CPF monies online, and receive it via interbank GIRO or PayNow, or mail in a a hardcopy of the form.
Withdrawal Of CPF Monies Doesn’t Have To Be All Or Nothing
You do not need to withdraw the full amount that you’re eligible for in one go. Unlike the past, where you could only withdraw once a year, you can make withdrawals from your CPF whenever you need it, so you can plan ahead, with comfort in the knowledge that if you do need your CPF monies sometime in future, it is there for you at a moment’s (technically a day, with PayNow) notice.
