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23 Oct 2020 


Heard a rumour about your CPF that you’re not too sure of? It’s always best to check the facts with us, so you can make better decisions for your golden years! We’re addressing 3 common CPF myths below. Read on to find out what they are!

An infographic on the 3 common CPF myths for retirement planning

Myth 1: I can’t withdraw my CPF savings at age 55.


Fact: From age 55, you can withdraw up to $5,000 unconditionally and any remaining Ordinary Account (OA) and Special Account (SA) savings after setting aside your Full Retirement Sum. If you own a property with a remaining lease that can last you till at least age 95, you can withdraw your Retirement Account (RA) savings above your Basic Retirement Sum.

If you are born in 1958 or later, you also have the option to withdraw up to 20% of your RA savings from age 65. This includes the first $5,000 that can be withdrawn from age 55.


In addition, #didyouknow that you can withdraw your CPF savings as often as you like from age 55? 


You can make withdrawals in smaller amounts, rather than taking out your savings at one go. This way, your CPF savings can continue to grow at attractive interest rates of up to 6%* p.a.! You can withdraw these savings when needed, any time you like. If you choose not to withdraw or make a top-up to your RA, you can enjoy higher monthly payouts from age 65!


*Includes extra interest. Members who are below 55 years old are paid an extra interest of 1% p.a. on the first $60,000 of their combined balances (capped at $20,000 for OA). Members who are 55 years old and above are paid an extra interest of 2% p.a. on the first $30,000 and 1% per annum on the next $30,000 of the combined balances (capped at $20,000 for OA).

Myth 2: When I pass on, my CPF savings will be transferred to my nominees' CPF accounts.


Fact: Your CPF savings will be distributed to your nominee(s) in cash, unless you specify otherwise.


Remember to make a CPF nomination so that your loved ones can receive your CPF savings expeditiously. You can now make a CPF nomination conveniently through my cpf Online Services with your Singpass. Watch this video to learn more about making your CPF nomination online.


If you do not have a CPF nomination, your CPF savings will be transferred to the Public Trustee’s Office for distribution to your family members based on the intestacy laws or inheritance certificate (for Muslims) in Singapore. The Public Trustee’s Office will charge a fee for the distribution of un-nominated CPF savings.

Myth 3: I need to top up my MediSave if I don’t have the Basic Healthcare Sum (BHS) at age 65.


Fact: The BHS is the maximum amount of savings you can have in your MediSave — not the minimum! This means that you are not required to top up your MediSave if you don’t have the BHS.


MediSave savings above the BHS will be transferred to your SA or RA. If you have the Full Retirement Sum in your SA or RA, the savings in excess of the BHS will be transferred to your OA.


For those below age 65, the BHS is adjusted annually to keep pace with the expected growth in MediSave use by the elderly, ensuring the amount stays relevant for every cohort as they arrive at retirement age. Once you reach age 65, the BHS will be fixed for the rest of your life.


Now that you’ve cleared the air about these 3 CPF myths, you’re on your way to making more informed decisions about your retirement!

Information accurate ​​as at 23/10/2020.