CPF Retirement Sum Scheme

55 is a milestone age for many Singaporeans as we all look forward to cashing out our hard-earned CPF savings accumulated through decades of hard work. But before you rejoice, it is important to understand the CPF Retirement Sum Scheme.

This is because the amount of cash you can take out may be vastly different from what you had been dreaming of all along. There might be heart pain. There could be disappointment, or even bitterness.

To put things into perspective, Central Provident Fund (CPF) is Singapore’s social security system and over the years, it has evolved to cover not just our retirement needs, but also housing, medical and education purposes. Despite these, the central tenet of CPF is still to ensure that Singaporeans save enough for retirement.

Since the CPF Retirement Sum Scheme is so important, have you ever really sit down and figure out what is it all about?

I was curious about CPF Retirement Sum Scheme and recently tried to gain a better understanding of the retirement policy. Boy, I was nearly blown away! The framework was indeed complicated. No, I am not exaggerating because if you read carefully and make the effort to think deeply, you would realize that the CPF Retirement Sum Scheme is actually not as simple as you thought it should be.

CPF Retirement Account

When you reached 55, your Ordinary Account will be combined with Special Account to form a newly created Retirement Account (RA), up to the Full Retirement Sum (FRS). What does this mean? [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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