Singapore CPF Withdrawal Rules 2025: Who Qualifies for Early Access?

Join on WhatsApp

Get the latest updates directly on WhatsApp – motivation, news & more!

Singapore’s Central Provident Fund (CPF) system is designed to support citizens and permanent residents in their retirement, healthcare, and housing needs. While the primary purpose of CPF savings is for retirement, there are provisions that allow for early withdrawal under specific circumstances. As of 2025, several updates have been made to the CPF withdrawal rules. This article delves into who qualifies for early access to CPF savings and the conditions attached.

1. Withdrawal at Age 55 for Immediate Needs

Upon turning 55, CPF members can access their savings for immediate cash needs. The amount available for withdrawal depends on whether the member has set aside the Full Retirement Sum (FRS) in their Retirement Account (RA).

Members Who Have Met the FRS: If a member has set aside the FRS, they can withdraw any excess savings in their Ordinary Account (OA) and RA.
Members Who Have Not Met the FRS: If the FRS is not fully set aside, members can withdraw up to $5,000 from their CPF savings. Any remaining savings in the OA may be transferred to the RA to help meet the FRS.

It’s important to note that withdrawing CPF savings means reduced monthly payouts in the future. Therefore, members should carefully consider their retirement needs before making withdrawals.

2. Withdrawal for Property Owners

Property owners have additional options for CPF withdrawals. If a member owns a completed property in Singapore with a remaining lease that lasts until at least age 95, they can set aside their FRS with a combination of property value (up to half of the FRS) and cash. This allows them to withdraw part of their RA savings.

However, withdrawing from the RA will lower future monthly payouts. Members should weigh their short- and long-term needs carefully before deciding to make such withdrawals.

3. Withdrawal Due to Reduced Life Expectancy

Members who have been certified by an accredited doctor to have a reduced life expectancy due to a medical condition may apply to withdraw some of their CPF savings. Conditions that qualify include:

Reduced Life Expectancy: A severe reduction in life expectancy due to illness.
Permanently Unfit for Work: Being permanently unfit for any form of employment.
Lack of Mental Capacity: Permanently lacking the mental capacity to make decisions, as defined in the Mental Capacity Act.

To apply, members need to submit a Medical Assessment Report completed by an accredited doctor. The amount that can be withdrawn depends on the extent of the reduced life expectancy and the member’s CPF balances.

4. Closure of Special Account for Members Aged 55 and Above

Starting from early 2025, the Special Account (SA) for members aged 55 and above will be closed. Savings in the SA will be transferred to the RA up to the FRS, where they will continue earning the long-term interest rate. Any remaining SA savings that are withdrawable will be transferred to the OA and can be withdrawn when needed.

Members are encouraged to top up their RA to the Enhanced Retirement Sum (ERS) to benefit from higher monthly payouts in retirement. The ERS for 2025 is set at four times the Basic Retirement Sum (BRS), which translates to $426,000.

5. Withdrawal for Non-Singapore Citizens or Permanent Residents

Non-Singapore citizens or permanent residents who are no longer residing in Singapore may close their CPF accounts and transfer their CPF savings to their bank accounts. The process involves submitting an online form and providing necessary documentation. Once the account is closed, any remaining savings will stop earning the prevailing CPF interest.

6. Important Considerations Before Making Withdrawals

Before deciding to withdraw CPF savings, members should consider the following:

Impact on Retirement Payouts: Withdrawals will reduce the amount available for monthly payouts during retirement.
Interest Rates: CPF savings earn a higher interest rate in the RA compared to the OA. Members should weigh the benefits of higher interest against the need for immediate cash.
Long-Term Financial Planning: It’s essential to assess long-term financial needs and how withdrawals may affect future financial security.

7. Application Process for Early Withdrawals

To apply for early withdrawals, members can use the CPF Board’s online services. The application process involves:

Submitting an Online Application: Members need to fill out the appropriate forms available on the CPF website.
Providing Necessary Documentation: Depending on the reason for withdrawal, supporting documents such as medical certificates or property details may be required.
Awaiting Approval: The CPF Board will review the application and notify the member of the outcome.

It’s advisable to plan ahead and allow sufficient time for the application process, as there may be a 12-hour cooling period for changes to take effect.

Conclusion

The CPF system offers various avenues for early withdrawal to cater to the diverse needs of its members. Whether it’s for immediate cash needs, property-related expenses, medical conditions, or changes in residency status, understanding the eligibility criteria and implications of early withdrawals is crucial. Members are encouraged to consult the CPF Board’s official resources or seek financial advice to make informed decisions that align with their long-term financial goals.