CPF Withdrawal

If your CPF balance depletes before your expected life expectancy, you may need to adjust your withdrawals, seek CPF-Life annuity, or rely on other retirement income sources.

At 55 a Retirement Account is created from your Ordinary and Special Account savings, and you may withdraw a lump sum — either a fixed minimum amount or any balance above the retirement sum that applies to you. Monthly payouts under CPF LIFE begin separately, from the payout eligibility age.

They are three tiers setting how much stays in your Retirement Account to fund lifelong payouts — a higher sum means larger monthly income. The Basic Retirement Sum can be met with a property charge or pledge, which allows more cash to be withdrawn at 55. Check the current figures with the CPF Board, as they are revised each year.

No, and it is the key distinction. CPF LIFE is an annuity: payouts continue for as long as you live, even after your own balance would have been exhausted. Modelling a drawdown that runs out at a fixed age understates the protection CPF LIFE provides against outliving your savings.

No. Savings left in CPF continue to earn interest at rates that are attractive relative to bank deposits, and leaving them in raises later payouts. Withdrawal is a right rather than a requirement, so there is no penalty for leaving money where it is.