Introduction
The Central Provident Fund (CPF) is a compulsory savings scheme in Singapore that helps members save for their retirement, healthcare, and housing needs. Members are required to contribute a portion of their monthly income to their CPF accounts, and the government also makes contributions on their behalf.
There are three main CPF accounts: the Ordinary Account (OA), the Special Account (SA), and the Medisave Account (MA). The OA is used for housing, investment, and education purposes, while the SA is used for retirement and healthcare expenses. The MA is used for hospitalisation and other healthcare expenses.
When Can I Withdraw My CPF Money?
The earliest age at which you can withdraw your CPF money is 55 years old. However, there are some exceptions to this rule. For example, you may be able to withdraw your CPF money earlier if you are:
- Terminally ill
- Permanently disabled
- Emigrating from Singapore
- Reaching the age of 65 and have not met the Minimum Sum requirements
How Much Can I Withdraw?
The amount of CPF money you can withdraw depends on your age and the amount of money you have in your CPF accounts. The following table shows the withdrawal limits for different age groups:
| Age | Withdrawal Limit |
|---|---|
| 55-59 | Up to 20% of your combined CPF balance |
| 60-64 | Up to 50% of your combined CPF balance |
| 65 and above | Up to 100% of your combined CPF balance |
Withdrawal Options
There are two main ways to withdraw your CPF money:
- Lump sum withdrawal: You can withdraw a lump sum of your CPF money at any time after you reach the age of 55. However, you will need to pay a 10% withdrawal tax on the amount you withdraw.
- Monthly withdrawal scheme: You can also choose to withdraw your CPF money in monthly installments over a period of time. This option is available to members who are 55 years old and above and have met the Minimum Sum requirements.
Tax Implications
As mentioned above, you will need to pay a 10% withdrawal tax on any CPF money you withdraw before the age of 55. However, there are some exceptions to this rule. For example, you do not need to pay withdrawal tax if you are:
- Withdrawing your CPF money to buy a property
- Withdrawing your CPF money to pay for your education
- Withdrawing your CPF money to invest in an approved investment scheme
Tips for Withdrawing Your CPF Money
Here are a few tips for withdrawing your CPF money:
- Plan ahead: Start planning for your CPF withdrawal early so that you can make informed decisions about how you want to use your money.
- Consider your financial needs: Before you withdraw your CPF money, make sure you have considered your financial needs and goals. You do not want to withdraw more money than you need, as you may need it later on in life.
- Get professional advice: If you are not sure how to withdraw your CPF money, you can get professional advice from a financial advisor.
Conclusion
Withdrawing your CPF money is a major financial decision. By understanding the rules and regulations surrounding CPF withdrawal, you can make informed decisions about how you want to use your money.
Frequently Asked Questions
Q: When can I withdraw my CPF money without paying withdrawal tax?
A: You can withdraw your CPF money without paying withdrawal tax if you are:
- Withdrawing your CPF money to buy a property
- Withdrawing your CPF money to pay for your education
- Withdrawing your CPF money to invest in an approved investment scheme
Q: How much CPF money can I withdraw at age 55?
A: At age 55, you can withdraw up to 20% of your combined CPF balance.
Q: What is the Minimum Sum?
A: The Minimum Sum is a lump sum of money that you must have in your CPF accounts before you can withdraw your CPF money. The Minimum Sum is
