Anonymous
What happens to CPF at age 55?
From the seedly posts, I understand that the money in OA and SA will used to form RA (up to ERS?) and the payout will start at 65.
1. If there is sufficient money in SA to form ERS, will there still be any drawdown of OA?
2. Any amount in excess of ERS, will remain in OA and SA, and can be withdrawn anytime from 55 onwards?
3. Can I still make voluntary tax deductible contribution of SA and MA at age 55 onwards?
4. If I withdraw from CPF, are there any savings a/c or investment that are better?
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Hariz Arthur Maloy
31 May 2019
Independent Financial Advisor at Promiseland Independent
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1) SA gets depleted first. So if there's enough in SA, OA won't be touched.
2) Yes, they can be withdrawn anytime and you can even use PayNow to do it.
3) Yes you can via VC scheme but remember that your allocation rates at 55 are very different to when you're younger. Almost everything goes to MA.
4) It'll be hard to find a guaranteed 2.5-4% liquid savings account. Unless you're looking at withdrawing your OA to convert into a lifetime annuity, I wouldn't recommend withdrawing it to put it somewhere else.