Boosting CPF LIFE payouts with savings in Ordinary and Special Account (from Oct 2023)

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The change will take effect from October 2023 to make it easier for existing LIFE members to enjoy higher CPF LIFE monthly payouts.

If you are affected, a notification will be sent to you about one month before your non-withdrawable Ordinary and Special Account (OSA) savings are annuitised and streamed out as higher lifelong monthly payouts.

If you have not met your cohort Full Retirement Sum, your OSA savings may not be withdrawable in a lump sum and are meant to be streamed out as monthly payouts. If you are on CPF LIFE, you currently need to instruct us to annuitise your OSA savings to get higher CPF LIFE monthly payouts.

 

From October 2023, CPF Board will automate this process and make it easier for you to enjoy higher CPF LIFE monthly payouts.

Your eligibility to make lump sum withdrawals from your Ordinary and Special Account (OSA) will not be affected. This is because only the OSA savings that cannot be withdrawn in a lump sum will be annuitised as higher CPF LIFE monthly payouts. You can continue to apply for a lump sum withdrawal of your OSA savings based on the current withdrawal rules.

 

The purpose of your CPF savings is to provide you with a stream of retirement income. If you still have housing obligations after starting your monthly payouts, you can use your monthly payouts or monies in excess of your Full Retirement Sum after this transfer to meet your housing needs.

No, the non-withdrawable Ordinary and Special Account (OSA) savings cannot be taken out in a lump sum and are meant to be streamed out as monthly payouts in the first place.

 

If you have no immediate use of your monthly payouts, you may invest them outside the CPF system if you wish.

No, the purpose of your CPF savings is to provide you with a stream of retirement income. If you still have housing obligations after starting your monthly payouts, you can use your monthly payouts or the monies in excess of your Full Retirement Sum to meet your housing needs.

After your non-withdrawable Ordinary and Special Account (OSA) savings are successfully annuitised, a notification will be sent to inform you of the revised CPF LIFE monthly payout.

For members who are affected, the first transfer of non-withdrawable monies from the Ordinary and Special Account will take place in October 2023. Subsequent transfers will take place every January starting from 2024.

The amount of non-withdrawable monies transferred to your Retirement Account (RA) is based on the latest balances in your Ordinary and Special Account (OSA).

 

The difference could be due to new inflows or outflows that took place in your OSA after we had sent you the notification.

We will check your latest balances before transferring the non-withdrawable monies from your Ordinary and Special Account to your Retirement Account. If you have already topped up to meet your cohort Full Retirement Sum, all monies in your Ordinary and Special Account will be deemed withdrawable. Hence, no transfer will take place.