This post is meant to summarised what you need to know about CPF when you’re turning 55
- You have to choose the 3 levels of retirement sums that you want
- Basic Retirement Sum (BRS) – ($83k)
- Full Retirement Sum (FRS) – ($166k)
- Enhanced Retirement Sum (ERS) – ($$249k)
- After 65 you can choose from 3 CPF Life plans // You can choose when you want to start the payouts
- Standard plan
- Pays you more today less for your kids in the future
- Basic plan
- Pays you less today more for your kids in the future
- Escalating plan
- The payout increases as you grow older while ur kids gets a smaller pay
- Standard plan
- Your basic healthcare sum as of 2017 is $52k
- Interest Rate
- Like mentioned previously in my other CPF post, you will have additional interest rate (1-2%) on all your accounts.
- Can I do lump-sum withdrawals?
- Not unless you turned 55 before the year 2013
- How much can I withdraw from my CPF?
- $5k and below — Haven’t meet BRS/FRS (Requirements)
- $5k – Your FRS — Excess in your RA after the BRS (Requirements)
- More than your FRS — Excess in your RA after the FRS (Requirements)
- Example : You have $120k, You can withdraw $37k ($120k – $83k).
- What if the total amount in your CPF doesn’t even meet BRS
- You can only withdraw up to $5k
- Can I don’t sign up for CPF LIFE?
- Yes, ONLY if you dont want to be a citizen, have certain illness (that requires that money), reduced life expectancy.
- or else, You HAVE TO sign up
p.s Let me know if I missed out on other informations that could really benefit everyone 🙂