Oral Answer to PQ on Increasing CPF Withdrawal Limit to Match Inflation

NOTICE PAPER NO. 2185 OF 2023 FOR THE SITTING ON OR AFTER 19 SEPTEMBER 2023
QUESTION NO. 5069 FOR ORAL ANSWER

MP: Mr Leong Mun Wai

To ask the Minister for Manpower whether the withdrawal limit of $5,000 from the CPF Special and Ordinary Account savings for Singaporeans who have not met their Full Retirement Sum can be increased to match the rate of inflation.

Answer:

1. The intent of CPF is to meet members’ long-term retirement needs. Increasing the $5,000 unconditional withdrawal limit will only lower members’ future monthly retirement payouts, especially for those who have not met their required retirement sum. To help Singaporeans cope with inflation and the rising cost of living, the Government has instead rolled out a comprehensive series of measures to provide immediate and targeted support which have helped the lower-income and more vulnerable groups.

2. Nonetheless, the CPF system has built in some flexibility. For those who turned 55 from 2013 onwards, they can withdraw up to 20% of their Retirement Account savings from age 65. Property owners also have the flexibility to set aside their FRS with a mixture of property and cash, and can thus withdraw their Retirement Account savings above the BRS.