Latest update of CPF withdrawal rules after 55 years old affects me and 1% of CPF members, what can we do?

When property does not cover till age 95, CPF member cannot apply to withdraw their CPF savings above BRS, except for the first $5,000 from age 55 and 20% of their Retirement Account savings from their payout eligibility age.

This change is not expected to affect most CPF members as according to the MND, about 98 per cent of HDB households have a home which can last them to 95 years and older.

For the remaining 1% of the CPF members which equates to 390,000 are just unlucky? What can be done?

SeedlyTV S1E06

1

Discussion (1)

What are your thoughts?

Learn how to style your text

CPF Board

26 Jun 2019

Hi,
The rules were updated to take into account the changing needs and higher life expectancy of Singaporeans. With 1 in 3 Singaporeans aged 65 today expecting to live beyond 90, the rules were changed to focus on whether the remaining lease of the property can last the youngest buyer until at least the age of 95. This will give Singaporeans more flexibility to buy a home for life, while safeguarding their retirement adequacy.
Hence, CPF members turning 55 who do not own a property that lasts them to at least 95 years old can only withdraw above their Full Retirement Sum (FRS). This also ensures that if a member outlives his/her property, he/she can still tap on savings above his/her Basic Retirement Sum (BRS) to purchase a home that can last him/her to at least 95 years old.
Thank you.

Reply

Save

Write your thoughts