The auto annuitisation of non-withdrawable Ordinary and Special Account savings took effect from October 2023 to make it easier for existing CPF LIFE members to enjoy higher monthly payouts. It is applicable to existing CPF LIFE members who have started receiving their CPF LIFE payouts but have not met their Full Retirement Sum.
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 This is because only the OSA savings that cannot be withdrawn in a lump sum will be annuitised as higher CPF LIFE monthly payouts.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, as you have not met your Full Retirement Sum, the non-withdrawable Ordinary and Special Account savings cannot be taken out in a lump sum and are meant to be streamed out as monthly payouts.
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.
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.
For members who are eligible, the automatic transfer will take place once a year. You will receive a notification one month before the transfer occurs.
To be eligible for the automatic transfer, your non-withdrawable monies in your Ordinary and Special Accounts must be sufficient to increase your CPF LIFE monthly payouts by at least $10.
Yes, you can. Here are the steps:
1) Go to Forms and e-applications, click ‘Monthly payouts’ and ‘Apply online’ under Plan my monthly payouts service.
2) Under ‘Use more CPF savings to increase payouts’ in the second page, select the OSA amount to be transferred to increase your CPF LIFE payout.
You may perform the above any time, as long as you have monies in your Ordinary or Special Accounts.