At the age of 55, your CPF savings will reach its “maturity age.” This means that you will have the option to withdraw your CPF funds in several ways.
CPF Withdrawal Options at 55
- Full Withdrawal: You can withdraw all your CPF savings at once. However, if your CPF savings are below the CPF Full Retirement Sum (FRS), you will need to set aside a Retirement Account (RA) of up to $30,000.
- Phased Withdrawal: You can withdraw your CPF savings in monthly installments over a period of 5 to 10 years.
- Lifelong Income: You can use your CPF savings to purchase a CPF LIFE annuity, which will provide you with a monthly income for life.
- Leave it in CPF: You can leave your CPF savings in the CPF account to continue earning interest.
CPF Retirement Sums
The amount of money you can withdraw from your CPF at 55 depends on your CPF balance and your age. The CPF Retirement Sums (RS) are set by the government and are reviewed every year.
CPF Retirement Sums for 2023
| Age | Basic Retirement Sum (BRS) | Full Retirement Sum (FRS) |
|---|---|---|
| 55 | $196,000 | $279,000 |
| 56 | $201,000 | $286,000 |
| 57 | $206,000 | $293,000 |
| 58 | $211,000 | $301,000 |
| 59 | $217,000 | $309,000 |
CPF Life Expectancy Calculator
The CPF Life Expectancy Calculator is a tool that can help you estimate how long your CPF savings will last. The calculator takes into account your age, gender, and health status.
CPF Life Expectancy Calculator for Men
| Age | Life Expectancy |
|---|---|
| 55 | 23.8 years |
| 56 | 23.3 years |
| 57 | 22.8 years |
| 58 | 22.3 years |
| 59 | 21.8 years |
CPF Life Expectancy Calculator for Women
| Age | Life Expectancy |
|---|---|
| 55 | 27.4 years |
| 56 | 26.8 years |
| 57 | 26.2 years |
| 58 | 25.6 years |
| 59 | 25.0 years |
Effective Strategies for Managing CPF at 55
- Set aside a Retirement Account (RA): If your CPF savings are below the FRS, you will need to set aside an RA of up to $30,000. This will help to ensure that you have enough money to support yourself in retirement.
- Consider a Phased Withdrawal: Withdrawing your CPF savings in monthly installments can help to spread out your income and reduce the risk of running out of money in retirement.
- Purchase a CPF LIFE annuity: A CPF LIFE annuity can provide you with a guaranteed monthly income for life. This can be a good option if you are concerned about running out of money in retirement.
- Leave it in CPF: If you do not need to withdraw your CPF savings immediately, you can leave them in the CPF account to continue earning interest.
Tips and Tricks
- Start saving early: The more you save for retirement, the more money you will have available at age 55.
- Make regular contributions: Contributing to your CPF account regularly will help to increase your balance over time.
- Take advantage of tax relief: The government offers tax relief on CPF contributions. This can help to reduce your overall tax bill.
- Get professional advice: If you are not sure how to manage your CPF savings, you can consult a financial advisor for professional advice.
Common Mistakes to Avoid
- Withdrawing too much money: Withdrawing too much money from your CPF at age 55 can leave you with less money to support yourself in retirement.
- Not setting aside a Retirement Account (RA): If you have not set aside an RA, you may have to pay a penalty when you withdraw your CPF savings.
- Not planning for long-term care: Long-term care can be expensive. If you do not plan for long-term care, you may have to use up your CPF savings to pay for these costs.
- Not getting professional advice: If you are not sure how to manage your CPF savings, you should consult a financial advisor for professional advice.
