3 reasons to continue saving with CPF at 55

21 Sep 2016 

Turning 55 soon? Congrats on reaching this major milestone in your life! On your birthday you'll soon have a big decision to make-to withdraw or not to withdraw your CPF savings?


Contrary to popular belief, there are many advantages to not withdrawing your CPF savings at 55. Here are 3 reasons why you should continue saving with CPF:

3 reasons to continue saving with CPF at 55.png 


1. You can enjoy attractive interest rates of up to 6% 

Interest rates for members 55 and above ​
CPF BalanceInterest rate (p.a.)
First $30,0006%
Next $30,0005%
Amount above $60,0004%

When you turn 55, you will enjoy an additional 1% interest on the first $30,000 in your combined CPF balances. This is on top of the prevailing Retirement Account interest rate of 4% and the additional 1% interest on the first $60,000 of combined CPF balances applicable to all CPF members. Take advantage of this to grow your savings at up to 6% per year! You'll be losing out if you withdrew your savings to put them in a bank account with a much lower interest rate.


For a member with $30,000 in his Retirement Account (RA) at age 55, the additional 1% extra interest amounts up to about a 15% increase in his monthly payout, or about $40 more each month, for the rest of his life!


2. You can still use your Ordinary Account savings to pay for your house 

Before your 55th birthday, you can apply to reserve your OA savings to continue paying for your housing loan beyond 55. This may, however, result in a lower retirement sum and lower monthly payouts.


You can also use your new CPF contributions to your OA if you continue working after 55


You may refer to our website for more information on using your CPF savings to pay for your housing instalments after turning 55.


3. You can make a withdrawal at any time after 55 

If you don't need the money right away, why not leave it in your CPF account and grow the amount at up to 6% per year (as above). You can still make a withdrawal at a later date, or withdraw only part of your savings. For example, if you are eligible to withdraw $5,000, you can choose to withdraw $2,000 first and the remaining $3,000 at a later time.

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