Skip to main content
About Us

CPF savings are primarily for retirement needs

Employment practices
  • Berita Harian (28 February 2014): CPF savings are primarily for retirement needs
  • Berita Harian (19 February 2014): Hope our government will be more concerned about retirees
  • Berita Harian (14 February 2014): Disappointed that CPF money is credited into Retirement Account
CPF savings are primarily for retirement needs
- Berita Harian, 28 February 2014
  1. We refer to Mr Shamsudeen Haja Maideen's letter ("Disappointed that CPF money is credited into Retirement Account", 14 February) and Mr Johan M. Rashid’s letter ("Hope our government will be more concerned about retirees", 19 February).
  2. When a CPF member turns 55, a Retirement Account (RA) is created and savings from his Special Account (SA) and Ordinary Account (OA) are transferred to his RA. As RA monies earn a higher rate of return overall, members will have more savings to tap on when they reach the draw down age.
  3. The OA continues to exist even after the RA is created. Any new contributions to the OA after the age of 55 can be used to meet housing needs. In addition, any money in the RA in excess of half the Minimum Sum can also be used for housing.
  4. We understand that there are some members who may encounter difficulties for their housing payments. We have, on a case by case basis, allowed such members to use savings in their RA that originated from their OA to meet their housing needs. However, this option means their retirement savings are being depleted and should be used only as a last resort.
  5. Hence, in deciding whether to allow such cases, we take into consideration the member’s financial circumstances, such as whether he has made an attempt to restructure his outstanding housing loan. We also consider whether the member will continue to have difficulties in meeting his outstanding loan even after depleting his retirement savings, because we want to avoid a situation where a member has no CPF savings and no roof over his head in retirement.
  6. We urge CPF members to be prudent with their housing purchases, especially when purchasing or upgrading a property at an older age. This is because members may have to take on loans with shorter tenures and higher monthly instalments. Members should also factor in any decline CPF contributions as they age, which may mean that they may need to service their monthly housing instalments with cash on top of CPF.
  7. We are in touch with Mr Shamsudeen, and have offered suggestions as to how he can continue to meet his housing instalments. If Mr Johan needs advice, he can contact CPFB at member@cpf.gov.sg or 1800 227 1188.
Hope our government will be more concerned about retirees
- Berita Harian, 19 February 2014

I am shocked to read the letter by Mr Shamsudeen Haja Maideen, “Disappointed that his CPF money has been transferred to Retirement Account” (BH, 14 Feb). I myself will turn 55 soon and if my CPF money is credited to my Retirement Account, I will be in the same predicament as Mr Shamsudeen. I will feel pressured as I won't be able to meet my HDB monthly installment. I hope that the government can think of something to overcome this problem.
Disappointed that CPF money is credited into Retirement Account
- Berita Harian, 14 February 2014

When I reached the age of 55 years recently, I thought that I could use a little bit of money from Central Provident Fund (CPF) that I have to help pay off my HDB flat monthly installments.

However, I was told that my CPF money was channelled into my Retirement Account under the Minimum Sum Scheme. As a result, I had to pay my flat monthly instalments using cash. This makes my life more difficult because I cannot afford to pay the monthly instalments using cash.

I have met my MP and he helped write a letter of appeal to the CPF Board on my behalf. I received a reply from the CPF Board who said that my appeal was rejected. CPF Board suggested for me to refinance my HDB loan. This did little to help solve my problem.

I'm disappointed that all this money is used to pay the monthly instalment of my house was included in the Retirement Account while I still have to pay instalments. This scheme makes my life difficult. It's not practical for me because it does not see the need and my priority now. I am required to keep the money in the retirement account is not certain that I can use when I need the money now.