CPF Retirement Sum Scheme (RSS) – Property for sale Singapore
The CPF Retirement Sum Scheme (RSS) provides CPF members a monthly income to support a basic standard of living during retirement for about 20 years. The Full Retirement Sum (FRS) [see FRS schedule below] is the amount to set aside in your Retirement Account (RA) for your retirement needs. Property for sale Singapore.
To better mitigate longevity risks, the CPF LIFE Scheme was introduced in 2009 which provides a monthly income for as long as you live. Since 1 January 2013, CPF members with at least $40,000 in their RA at 55 years old, or at least $60,000 at 65 years old, will be placed on CPF LIFE. If you are currently on the RSS, you can choose to join CPF LIFE before turning 80 years old. Property for sale Singapore.
Withdrawal of CPF after age 55
When you reach 55 years old, your Special Account (SA) and Ordinary Accounts (OA) savings will be transferred to your RA to form your retirement sum. Your retirement sum can be used to join CPF LIFE or the RSS which provides you with a monthly payout of about 20 years. Property for sale Singapore.
After setting aside your FRS or Basic Retirement Sum (BRS) [see BRS schedule below] with sufficient property charge/pledge and the current MMS of $43,500, you can choose to withdraw the remaining CPF balances (excluding top-up monies, government grants, and interest earned in your Retirement Account), or continue to keep your savings in CPF to earn attractive interest.
You can withdraw up to $5,000 even if you are unable to set aside your FRS or BRS with sufficient property charge/pledge and the current MMS.
Refund of CPF after sale of property
If you have used your CPF savings to finance the purchase of your property, you will have to refund to your CPF the principal CPF amount (P) which you have withdrawn for the purchase of the property; and the accrued interest (I) which you would have earned if the savings were not taken out from your CPF account. Property for sale Singapore.
If you are 55 years old and above, and have pledged your property to withdraw your RA savings in cash, you will need to refund the pledged amount on top of the P and I. The amount refunded will be used to set aside your FRS in your RA; and the current MMS in your Medisave Account (MA) if required.
The balance of the CPF refunds will be paid to you within one week from the date your CPF refunds are credited to your CPF account.
From 1 January 2016, the MMS will be removed. You will no longer be required to top up your MA before making a CPF withdrawal. In view of this upcoming change, from now till 31 December 2015, you have the option not to top up your MA when making a housing refund. You may write to the HDB Housing Schemes Department to do so.
Schedule of Full Retirement Sum (FRS):
| 55th birthday on or after | Full Retirement Sum (FRS) (in 2003 dollars) |
Full Retirement Sum (FRS) (after adjustment for inflation) |
| 1 July 2003 | $80,000 | $80,000 |
| 1 July 2004 | $84,000 | $84,500 |
| 1 July 2005 | $88,000 | $90,000 |
| 1 July 2006 | $92,000 | $94,600 |
| 1 July 2007 | $96,000 | $99,600 |
| 1 July 2008 | $100,000 | $106,000 |
| 1 July 2009 | $104,000 | $117,000 |
| 1 July 2010 | $108,000 | $123,000 |
| 1 July 2011 | $112,000 | $131,000 |
| 1 July 2012 | $113,000 | $139,000 |
| 1 July 2013 | $115,000 | $148,000 |
| 1 July 2014 | $117,500 | $155,000 |
| 1 July 2015 | $120,000 | $161,000 |
Schedule of Basic Retirement Sum (BRS)
| | Basic Retirement Sum (BRS) |
| Age 55 in 2016 | $80,500 |
| Age 55 in 2017 | $83,000 |
| Age 55 in 2018 | $85,500 |
| Age 55 in 2019 | $88,000 |
| Age 55 in 2020 | $90,500 |
Source: CPF website
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