How is the CPF retirement sum calculated? Does it involve all CPF accounts?

CPF retirement sum is just the amount that should be set aside at age 55 for an income payout under either CPF Life, or RSS (grandaddy).

The calculation involves OA + SA only available in your account. Accrued interest is only if you sell your flat (which will go to RA also if you try to draw it first).

If you wish to draw out monies and leave BRS, you will need to pledge your property in order to draw anything above BRS. Then the pledged property (should you sell), the money will go into RA to form FRS first, then the rest will go into your OA account.

Best to check properly what conditions you have, as its not the full picture, i may have miss out typing any facts that can change the way it is mentioned.

Hi Adam,

I hope I'm interpreting your question correctly.

The retirement sum is not calculated. It is defined. So for this year, it has been stated that for those turning 55 in 2020, FRS is $181K. Now, this is not a number that must be met. If you turn 55 and your OA and SA combined only have $160K, that's ok. You won't hit FRS, but $155K will be transferred to your RA and you can withdraw $5K as per CPF rules. CPF will just take what's available up to FRS. If you have more than FRS in your OA and SA, good for you, the rest will be available for withdrawal after RA is formed. If you had used money for CPF IS or a house, what you have used isn't factored in to the transfer. Only monies in OA or SA will be transferred to RA.

What's unknown is the FRS (and BRS/ERS) amounts from 2020 onwards. Have yet to see word on that.