How Much Of My CPF Be Locked Up When I Reach 55?

Last updated on April 2nd, 2018 at 11:50 pm

From the day you start to work, you have been contributing to your 3 CPF account. CPF Ordinary Account (CPF-OA), CPF Special Account (CPF-SA) and CPF Medisave Account (CPF-MA). The CPFOA and CPFSA will form your Retirement account at the age of 55.

Aren’t you interested to know what the amount you have to fulfil before you can withdraw the excess at Age 55?

Before I can answer that question fully, you have the understand the history of the withdrawal limits imposed which is defined by the Minimum Sum (before 2016) or Full Retirement Sum FRS  (current standard). The FRS will be gradually increased to reach a level of savings that a lower-middle income household would need for basic retirement expenses.

What this means is that the FRS is destined to increase, regardless you like it or not.

The incremental rate over the years has been the following:

Past Full Retirement Sum (FRS)
Source: Past Full Retirement Sum (FRS)

Based on above data, the incremental rate has been the following:

I did a conservative projection on the FRS for different age groups based on 3% and 4% increment rate. The Full Retirement Sum is as below.

The increment rate is highly related to Consumer Price Index which is on the average about 3% in Singapore. This is also reflected in the next three years adjustment of the FRS from year 2018 to year 2020.

I am in the age range of 30 to 35 years old. It seems that I must have an excess of $300,000 in my retirement account before I can withdraw any monies with the FRS limit! How much is yours?

Hopefully, I have given you a glimpse of how much you can expect to withdraw from your CPF based on my estimation.

This post is a prelude to “Why I Will Not Be Transferring My CPF OA to SA?” Look out for our next post!

If you like this post, please share the article so that your friends and relatives will not be taken aback when they reach 55!


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The Financial Advocate

I am always fascinated in how parents approach financial issues in their daily lives. There is an overwhelming amount of information available and through this blog, I hope I can shed some light on financial matters concerning parents!