Some people were of the opinion that when a person reaches 65 years old, his money in his Ordinary Account (OA) will all be transferred to his Retirement Account. From then on, he would not be able to withdraw lump sum cash from the Retirement Account except to receive monthly payouts as stipulated by CPF retirement schemes.
This really puzzled me and I did not hear of this before. So I set about reading information from CPF website. I also posed the query to CPF Customer Contact Centre. Their reply was below:
“You can submit the application form to withdraw your OA anytime (bold and underlined font). If you have previously withdrawn your CPF savings, you can submit a withdrawal application at any time if you have CPF monies that may be withdrawn, and CPF Board will assess the withdrawal application.”
Whether you have reached 55 years old or when you have turned 65 years old, member can apply to withdraw OA money anytime so long as the member has CPF monies that may be withdrawn.
To answer the question at the title to this blog post, the short answer is Yes.
If one has sufficient cash in the Ordinary Account for withdrawal, one needs not withdraw everything from OA on reaching 65 years old. Money in OA continues to earn interest income at the interest rate of at least 2.5% per year. (applicable now)
“An extra 1% interest paid on the first $60,000 of a member”s combined balances (with up to $20,000 from the OA).”
Disclaimer: This is based on my understanding.
Copyright © 2018, limkimtong for Living Investment
The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.