Friday, September 17, 2010

CPF Withdrawal Reaching 55 and After 55

Resources:
Online CPF withdrawal calculator
Discounted Singtel Share Checker
Note: Based on a person reaching 55 next year.

Went to CPF with my parents to learn more about the CPF when she reached 55. CPF Website did include a table and calculator for more information regarding withdrawal but it is better to ask. Generally, there are only 2 cases based on the sum of all 3 accounts (ordinary, special and medisave).


  • Less than Minimum Sum + Medisave Required Amount => Withdrawal a percentage(see table) of your whole balance or at least $5,000(provided you had at least $5,000). The rest if any will be transferred to your new Retirement Account.
  • More than Minimum Sum + Medisave Required Amount => Withdrawal balance with the Minimum Sum transferred to your new Retirement Account.

The day You Turn 55Withdrawal percentage of cash balances at age 55
On or before 31 Dec 200850%
1 Jan – 31 Dec 200940%
1 Jan – 31 Dec 201030%
1 Jan – 31 Dec 201120%
1 Jan – 31 Dec 201210%

The percentage only affects you if you did not exceed your Minimum Sum + Medisave Required Amount. Initially I was confused and thought the percentage everyone.

If you had less than the Minimum Sum + Medisave Required Amount, I believe your property can be used as a pledge if approved. Since my parent exceed the amount, we didn't asked about it.

After 55
The retirement account with your Minimum Sum will continue to accrued interest till you reached 65. You can request to withdraw balances (if you are working and continue to receive contribution in your account) yearly at your birthday provided you have more than your Minimum Sum and Medisave Required Amount.

Stock
Still not 100% sure about the stockholding since my parent wasn't sure either of their investment. My parents had DBS fund with UOB Investment(but she bought at DBS) and some discounted Singtel shares. Regarding her DBS fund, an enquiry at POSB mentions that we need to approach them to sell the fund. Confusing for me since the CPF statement mentioned UOB as the investment bank. Furthermore, the charges and refund in the CPF statement is confusing too. There is a $2 bank charge quarterly but the more confusing amount is a $30 refund half-yearly from UOB.

For the discounted Singtel Share, I couldn't find the type A,B or C shares as my parent mentioned and only found an overall amount through the online discounted Singtel Share checker. (I cannot believed the security of allowing anyone to see others shareholding as long as they had their IC number. Furthermore, I founded out Mr Lee Kuan Yew had the same amount of discounted share as my mum and weirdly, Mr Lee Hsien Loong didn't had any.)

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