CPFB | Reaching age 55

RETIREMENT income

What happens when you reach age 55

When you reach age 55, a new Retirement Account will be created for you and your Special Account will subsequently be closed. Find out more about the key changes to your CPF accounts and the things you need to do before and after you turn 55.

Overview
How it works
What to do
FAQs

Overview

Key changes

These are the key changes to your CPF accounts when you turn 55.

Creation of new Retirement Account and closure of Special Account

Your Retirement Account will be created for you on your 55th birthday.

Your Special Account and/or Ordinary Account savings will then be transferred to your Retirement Account, up to your Full Retirement Sum.

Savings in the Retirement Account earn the same long-term interest rate as the Special Account. Your Retirement Account savings will be used to provide you with monthly payouts in retirement.

Your Special Account will subsequently be closed, and any remaining Special Account savings will be transferred to your Ordinary Account.

More on Retirement sums

Increase in the maximum top-up you can receive

The maximum amount of top-ups you can receive in your Retirement Account is increased to the Enhanced Retirement Sum (ERS). By topping up your Retirement Account, you will receive higher monthly payouts in retirement.

Withdrawal for immediate retirement needs

After setting aside your Full Retirement Sum (FRS) in your new Retirement Account, you will be able to withdraw your excess savings in your Ordinary Account. If you are unable to set aside your FRS, you may still be able to withdraw up to $5,000 from age 55.

Let us walk you through the changes

How it works

Learn how your Full Retirement Sum is set aside in your Retirement Account to support your retirement goal

When you reach age 55, your CPF savings will be transferred from your Special Account, followed by your Ordinary Account to your Retirement Account up to your Full Retirement Sum (FRS).

Savings above your FRS will remain in your Ordinary Account and are withdrawable.

If your Special Account savings are more than sufficient to set aside your Full Retirement Sum

CPF savings from your Special Account savings will be transferred to the Retirement Account up to your Full Retirement Sum. The remaining savings in your Special Account will then be transferred to your Ordinary Account and will be withdrawable.

If your Special Account and Ordinary Account savings are not sufficient to set aside your Full Retirement Sum

Up to $5,000 of your savings may be set aside in your Ordinary Account. This amount will be withdrawable. Any remaining savings will be transferred to your Retirement Account.

If you own a property

You can choose to set aside up to half of the Full Retirement Sum (FRS) using your property, and to withdraw your savings above the Basic Retirement Sum (BRS) in your Retirement Account. With this, when you sell your property in future, you will need to refund the CPF savings withdrawn (including accrued interest). The refunds will be used to restore your Retirement Account up to your FRS.

When you turn 55, your CPF contribution rates will decrease. Your working contributions will be allocated to your Ordinary Account, MediSave Account, and Retirement Account. If you have met your Full Retirement Sum (FRS) in your Retirement Account, these contributions will be credited to your Ordinary Account.

What to do

Things to do before you turn 55

Finance your property with Ordinary Account savings

If you intend to continue using your Ordinary Account savings to finance an existing home or buy a new property shortly after turning 55, reserve the amount you need in your Ordinary Account so that it is not transferred to your Retirement Account when you turn 55. Ordinary Account savings transferred to Retirement Account can no longer be used to finance a home.

Reserve savings for home payments

Make informed decisions on your CPF savings with the Retirement Payout Planner

As you take a step closer to retirement, explore the Retirement Payout Planner to help you make informed decisions on your CPF savings. Set a retirement payout goal and discover how you can optimise your CPF savings to achieve it.

Go to planner

Make or review your CPF nomination

Consider making or reviewing your CPF nomination for peace of mind that your loved ones are protected by your CPF savings.

Make a nomination

Things to do after you turn 55

Enhance the security and protect your CPF savings

To protect your CPF savings, the default Daily Withdrawal Limit (DWL) for online withdrawal is set at $2,000, with the option for you to adjust it. You are advised to increase the limit only if there is a need to withdraw more and to lower it after the withdrawal to safeguard your CPF savings.

The DWL is not applicable to withdrawals made in-person at our CPF Service Centres.

For added security, you can activate the CPF Withdrawal Lock via Account settings which instantly reduces your daily withdrawal limit to $0, disabling all online withdrawals.

Go to Account settings

Continue to grow your retirement savings

Start planning for your retirement. To receive higher retirement payouts when you turn 65, you can consider topping up your Retirement Account up to the prevailing Enhanced Retirement Sum (ERS). This top up to ERS is only available to members from the time they turn 55. You may enjoy tax relief for cash top-ups made to your Retirement Account.

If you are eligible for the Matched Retirement Savings Scheme, you will also receive matching grants, from the Government on cash top-ups made.

Make a single cash top-up Set up recurring cash top-ups

Withdrawal for immediate retirement needs

You can make lump sum withdrawals for your immediate retirement needs when you need extra funds.

To withdraw your CPF savings:

Update your bank account with CPF Board via Account settings. If you would like to withdraw via PayNow, please select “PayNow NRIC-linked bank account” as your registered bank account. A 12-hour cooling period applies before your updated bank account takes effect. For update to all other bank accounts that are not PayNow NRIC-linked, it will generally take up to two working days for the account to be activated after your bank confirms that the account belongs to you. Do plan ahead to avoid any delay to your withdrawal plans.
Review and update your preferred online Daily Withdrawal Limit (DWL). Increasing the online DWL is subject to enhanced authentication and a 12-hour cooling period before the new limit takes effect. Do plan ahead to avoid any delay to your withdrawal plans.
Plan ahead for large withdrawals above the maximum online DWL of $50,000 and make the withdrawals over multiple days. Otherwise, make an appointment (select ‘Retirement Income’ and ‘Withdrawal above maximum online Daily Withdrawal Limit’) to visit a CPF Service Centre.

You can setup your bank account or adjust your withdrawal limit via Account settings.

Withdraw CPF savings for immediate needs

FAQs

Common questions

Learn More

What should I know about topping up my retirement savings?

Am I allowed to reserve my Ordinary Account savings prior to turning 55 years old for possible housing payments after I turn 55 years old?

How much CPF savings can I withdraw from age 55 to 64?

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