Turning 54? Get personalised answers to your CPF questions through a CPF Retirement Planning Service

05 Mar 2019 

As your retirement approaches, you may be keen to know more about the CPF schemes relevant to you. There are lots of useful resources online to help you plan for retirement with your CPF savings.  You can refer to this easy guide to get started, or use the CPF Retirement Estimator to compute the amount you need to set aside for a monthly payout that you want in your golden years. 

For those who prefer personalised help, the CPF Retirement Planning Service (CRPS) is a great avenue to get the answers you need. It is a one-on-one session with a CPF officer, who will help you understand CPF schemes that are relevant to you, and the options you have with your CPF savings when you turn 55.

CPF members can make an appointment for the CRPS from age 54 to before they turn 55. Here’s some information on questions you may have about CPF and the personalised answers you can get at CRPS:

What happens to your CPF savings at age 55?
A Retirement Account (RA) is created for you when you turn 55. The savings from your Special Account (SA) and/or Ordinary Account (OA), up to your Full Retirement Sum (FRS), will be transferred to your RA. Your RA savings will provide you with a monthly payout from your payout eligibility age, which is 65 for members born in or after 1954. If you would like to know more about the changes to your CPF savings after turning 55 years old, you can watch this video.

At your CRPS session, you can find out the amount of savings that will be transferred from your SA and/or OA to your RA, and how much you can expect to receive in monthly payouts from age 65. This will give you a clearer idea of your retirement income based on your current savings. If you wish to increase your retirement income, you can get higher payouts by topping up your RA through the Retirement Sum Topping-Up Scheme (RSTU). The CPF officer assisting you at CRPS will be able to advise you on the estimated amount you need to save for your desired monthly payouts.

What is CPF LIFE? Do I have to do anything about it?
CPF LIFE is a life annuity scheme that provides you with monthly payouts for as long as you live. While you will only need to choose your CPF LIFE plan when you want to start your payouts, which can be anytime between age 65 and 70, it is beneficial for you to understand how the 3 LIFE plans work so you can choose a plan that best suits your needs.

During your CPRS session, the CPF officer can answer questions you may have about monthly payouts and the bequest under each LIFE plan.

Turning 54.png

When and how much CPF savings can I withdraw?

When you turn 55, you can withdraw:

  1. $5,000 or your OA and SA savings above the FRS, whichever is higher; and
  2. Any RA savings (excluding top-up monies, government grants, and interest earned) above the Basic Retirement Sum (BRS), with sufficient property charge/pledge.
If you choose not to withdraw your savings, you can still do so any time after you turn 55. In the meantime, you can leave them in your CPF accounts to enable them to grow with attractive interest. Review your savings at the CRPS and find out about your options before you decide whether you wish to make a withdrawal.

What happens if I need my OA savings for repayment of an outstanding home loan after age 55?
If you are at least 54 years old and would like to reserve your OA savings to pay for your outstanding housing loan, you can submit an online application before your 55th birthday by logging in to my cpf Online Services and selecting the following:
  1. My Requests
  2. Property
  3. Use CPF for my property
  4. Your property address
  5. Reserve Ordinary Account monies for housing
Alternatively, you will receive a Reaching 55 package a few months before your 55th birthday. You will need to complete the enclosed application form with the details of your property, indicate the amount that you wish to reserve in your OA, and return the form to CPF at least three weeks before your 55th birthday. You can read more about this here.

Through CRPS, you can get an overview of the options you have for home financing after turning 55. This also includes how you can make partial payment, and if you are still working after age 55, how the decrease in your OA contributions may impact your mortgage payment.

Consider paying off your housing loan before you turn 55. This way, you won’t have to worry about your mortgage and can use your savings for your retirement needs when you turn 65
Turning 54 2.png

Of course, the CRPS can also help you with other questions about your CPF savings beyond these 4 topics. However, if you choose not to attend the CRPS, you can still access the same information and personalised infographics via my cpf Online Services from age 54 to before you turn 55. Find out more about CPF schemes here to make an informed decision on your CPF savings an​d plan ahead for your retirement.

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