A: The Central Provident Fund system helps to give you peace of mind in retirement by taking care of two needs: lifelong monthly payouts for basic needs and savings for emergency needs. The money that you contribute to your CPF account during your working years goes into building this nest egg for retirement.
CPF members are split into different cohorts based on the year they turn 55. Learn the difference between the Basic, Full, and Enhanced Retirement Sums here.A: You need not do so. It depends on whether you have an immediate need for the money withdrawn. Studies have shown that there have been CPF members who withdrew their lump sum at age 55 only to deposit it in the bank, which earns much lower interest rates. Such members will be worse off.
You can withdraw your CPF savings by submitting an online application with your SingPass on the CPF website and receive the payment via PayNow or Giro. To receive the payment via PayNow, you just need to register for PayNow and link your bank account to your NRIC number via your bank’s existing Internet banking platform or mobile banking application.
That, coupled with increasing standards of living and longer life expectancy, means it will cost more for future generations to enjoy their golden years.