What can my aging parents do with their CPF when they hit 65?

Hi anon,

You didn't specify where this $100K resides in, but I presume that this 100K is in CPF RA. If so, you should leave it inside till 65 where CPF Life will come into the picture to give them lifetime guaranteed income. CPF monies in RA cannot be withdrawn, so there's nothing much that can be done about it.

However, you can consider topping up their CPF RA via RSTU to get some tax relief and also to increase their payouts when they eventually turn 65.

However, if this $100K is in SA/OA, then consider transferring it over to RA to boost their CPF Life payouts. I would suggest trying to meet FRS at the very least. After that, any monies in excess that is lying around in OA/SA can be left as it, and you can withdraw the interest every year to supplement their retirement income.