Top 5 Things You Need To Know About CPF Retirement Sum | TheFinLens

If you’re reading this article, you either have a rough idea or may still be unsure and confused about what the CPF Retirement Sum is all about, or maybe you’re interested about CPF withdrawal nearing your retirement.

Firstly before we go any further, you need to know that the CPF Retirement Sum was previously known as the CPF Minimum Sum. If you were not aware about this, the scheme was renamed with effect from Jan 2016.

So what exactly is the CPF Retirement Sum and how does it affect you?

What Exactly is the CPF Retirement Sum?

The CPF Retirement Sum is simply an amount of money that is being put aside and saved for your retirement in your CPF at age 55.

When you’re 55, two things will happen: (1) You will be allowed to withdraw some cash depending on how much you have in your CPF and (2) your retirement sum will be formed using the savings from both your CPF Ordinary Account (OA) and Special Account (SA), which will be transferred into a new account called the Retirement Account (RA).

As you may have realised, the money that is in your RA is your retirement sum. As of now, if you’re not yet 55, to know how much retirement sum you’ve approximately saved up, you can simply add your OA and SA together. However once the money is being moved into your RA, you will not be able to touch the sum until you are eligible to receive your retirement payouts at age 65, or later if you wish.

How much can you withdraw from CPF at 55 years old?

http://thefinlens.com/how-much-can-you-withdraw-from-cpf-retirement-sum-thefinlens/

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