How Much Can You Withdraw From CPF At 55 & 65? (Most People Get This Wrong!)

How Much Can You Withdraw from CPF at 55 and 65?

When we talk about CPF, most people only know that they'll be locking money up until they become an old ah pek or old ah ma, then start receiving monthly payouts at 65. But what many don't actually know or even realize, is how much of it you can actually take out, and when.

This article will break down exactly how much you can withdraw from CPF at 55 and 65.

What Happens at Age 55

At age 55, CPF will set up a new Retirement Account (RA) for you. Here's the process:

- CPF transfers the savings from your Special Account (SA) into your RA to form the Full Retirement Sum (FRS)

- Any remaining balance in your SA will then be transferred into your Ordinary Account (OA)

- Your SA will then be closed

However, if the savings in your Special Account are not enough to meet the Full Retirement Sum, CPF will take money from your Ordinary Account savings to make up the difference.

Understanding the Full Retirement Sum (FRS)

The FRS number depends on which year you turn 55:

- Turn 55 in 2025: FRS is $213,000

- Turn 55 in 2026: FRS is $220,400

- And so on...

Depending on whether you have set aside your Full Retirement Sum or not, you can withdraw different amounts from CPF.

Scenario 1: You've Met the Full Retirement Sum

Once you've set aside the FRS in your Retirement Account, any leftover amount in your OA can be withdrawn freely.

For example:

- If you have $5,000 leftover, you can withdraw $5,000

- If you have $10,000 leftover, you can take out $10,000

So simple.

Your OA Becomes a High-Interest Savings Account

What this also means is that after turning 55, once your FRS has been set aside, your CPF OA pretty much becomes a high-interest savings account:

- Continue to receive monthly CPF contributions from work

- Earn 2.5% to 3.5% interest

- Withdraw that money anytime you want

Here's the cool part — you can even do a Voluntary Housing Refund to pay back whatever CPF OA funds you used for housing, and then withdraw it again later whenever you need it.

So while banks are cutting interest rates and everyone's scrambling to find the next "best" savings account, your CPF OA might actually be the best no-frills high-interest account you already have, giving you 2.5% to 3.5% interest, guaranteed.

Important Notes

- There's a default $2,000 daily online withdrawal limit

- You can increase this up to $50,000 if you need to

- If you don't have any urgent use for the cash, it's probably best to leave the money there to continue earning that sweet sweet passive income

Scenario 2: Your Savings Aren't Enough to Meet the FRS

If your savings aren't enough to meet the FRS, no matter how much you have in your OA, you can only withdraw up to $5,000.

For example:

- If you have $50,000 in your CPF, you can withdraw $5,000

- Even if you have $100,000, you can still only withdraw $5,000

Automatic Transfer to RA

Here's something important: Whenever you make a withdrawal, CPF will automatically transfer any non-withdrawable amount in your OA into your RA to help you reach your Full Retirement Sum.

For example:

- Let's say you originally had $5,000 in your CPF

- This year your employer contributed another $10,000 into your OA

- If you withdraw that $5,000, CPF will automatically move the remaining $10,000 into your RA till you reach your Full Retirement Sum

Scenario 3: Pledge Your Property

If you own a property that can last you till at least age 95, you can pledge your property to CPF.

By doing that, you only need to set aside the Basic Retirement Sum (BRS) instead of the Full Retirement Sum.

The Numbers

- If the FRS is $213,000, the BRS would be half of that: $106,500

- Instead of locking up $213,000 in your RA, you only need to set aside $106,500

- You can withdraw everything above that amount

What's the Catch?

If you ever sell the property that you've pledged, you'll need to:

- Refund the pledged amount back to CPF

- Plus whatever CPF principal and accrued interest you had used to buy the property in the first place

How Much Can You Withdraw from Age 65?

The rules here depend on your birth year. In general, if you were born in 1958 or later, you can withdraw up to 20% of your Retirement Account savings.

The Calculation

The withdrawable amount is:

20% of RA savings (excluding reserved amounts) minus $5,000

Reserved amounts include:

- Cash top-ups

- CPF transfers

- Government grants

### Example Calculation

Let's say you have $300,000 in your RA, and $10,000 of that is reserved (from cash top-ups, CPF transfers, or grants):

- 20% of ($300,000 - $10,000) = 20% of $290,000 = $58,000

- Minus $5,000 = $53,000 withdrawable

In short: The more money you have in your RA, the more you can withdraw. But the larger your reserved amount, the less you'll be able to take out after age 65.

Understanding CPF LIFE and the 20% Withdrawal

Here's one part that confuses many people:

When you join CPF LIFE, the savings in your Retirement Account are deducted as the annuity premium when the payouts begin. Depending on which CPF LIFE plan you choose, the percentage deducted is different:

- Standard and Escalating Plans: 100% of your RA savings deducted upfront

- Basic Plan: Only about 10% to 20% deducted upfront. Monthly payouts come directly from your RA until it's mostly depleted (usually around age 90)

The Key Question

If the money in your RA is already being deducted to pay for CPF LIFE premiums... how come you can still withdraw that 20% from age 65?

The Answer

That 20% withdrawal happens BEFORE you join CPF LIFE, not after.

This has been confirmed with CPF directly.

Your 3 Options at Age 65

As you get closer to age 65, CPF will send you a letter inviting you to decide what you want to do with your Retirement Account savings and monthly payouts.

Option 1: Start Payouts Without Withdrawing

This is the option most people are familiar with.

For example:

- If you had set aside the $213,000 Full Retirement Sum at 55

- By 65, that amount would've grown to around $315,000

- If you choose not to withdraw, you'll receive about $1,700 in monthly payouts for life

Option 2: Start Payouts AND Withdraw 20%

When you start your monthly payouts, you can choose to withdraw that 20%. That 20% will then be transferred into your CPF OA.

For example:

- 20% of $315,000 is about $63,000 (transferred to your OA)

- This leaves you with about $250,000 in your RA

- Your payouts will drop from around $1,700 to about $1,400 a month

Note: You are free to top up that money back to RA anytime to increase your payout, even after CPF LIFE has started.

Option 3: Do Nothing (Default)

If you choose not to do anything:

- Your payouts will by default start at age 70

- CPF will also automatically transfer that 20% out to your OA

Important Warning

Even though CPF advertises that deferring your payouts to 70 can increase your payouts by up to 35%, if you blur blur and didn't realise that the 20% was auto-transferred out, your actual payout will be much lower.

Example:

- Deferred to 70, didn't transfer anything out: ~$2,290/month

- Deferred to 70, but 20% auto-transferred out: ~$1,830/month

How to Take Control

If you want full control over how much to withdraw and when your payouts begin, here's what to do:

When you're about to turn 65, head over to the "Plan My Monthly Payouts" page and tell CPF exactly what you want:

- Whether to start payouts now or defer them

- Whether you want to keep the 20% inside your RA to grow and earn interest

The CPF Hack: Top Up 20% at 55

Here's a very interesting trick:

Assuming you've already set aside your Full Retirement Sum (FRS) at 55, you can actually top up another 20% into your Retirement Account (RA).

Then, by the time you turn 65, you can withdraw 20% from your RA.

Why This Works

By doing this:

- You get to enjoy that solid 4% interest from your RA for a full decade

- Even after you withdraw that 20% at 65, your RA balance will still end up slightly higher than if you hadn't topped up at all

It's like parking your money in a 10-year fixed deposit, but pays far better than any bank account, while still boosting your lifelong CPF LIFE payouts at the same time.

Who Is This For?

This strategy works best if you've already secured your FRS and don't need that extra cash in the near term. But if you're looking for a safe, guaranteed way to grow your retirement funds, this is one of the most interesting CPF "hacks" out there.

Summary

At Age 55:

- Met FRS: Withdraw any amount above FRS freely from your OA

- Didn't meet FRS: Can only withdraw up to $5,000

- Property pledge: Only need to set aside BRS (half of FRS), withdraw the rest

At Age 65:

- Can withdraw up to 20% of RA savings (excluding reserved amounts, minus $5,000)

- This withdrawal happens before joining CPF LIFE

- You have 3 options: start payouts immediately, start payouts + withdraw 20%, or do nothing (payouts start at 70)

Pro Tip:

Use the "Plan My Monthly Payouts" page to take full control of your CPF decisions. Don't let the 20% auto-transfer catch you off guard!