CPF Account Withdrawals and Cancellations by Singaporeans and Permanent Residents
Ministry of ManpowerSpeakers
Summary
This question concerns Mr Gan Thiam Poh’s inquiry regarding CPF withdrawal patterns at age 55 and account closures by individuals renouncing their Singapore citizenship or permanent residency. Minister for Manpower Mrs Josephine Teo noted that 42% of the 2016 cohort made no withdrawals within a year, while 53% of active members met their Full Retirement Sum. Of those meeting the sum, about half left additional funds in their accounts to benefit from higher interest rates or due to lack of immediate need. Between 2013 and 2017, an annual average of 13,500 members, or 0.4% of the total, withdrew their funds upon leaving Singapore permanently. Minister for Manpower Mrs Josephine Teo clarified that the CPF Board does not track former citizens or PRs who choose to retain their savings in their accounts after leaving.
Transcript
14 Mr Gan Thiam Poh asked the Minister for Manpower (a) how many Singaporeans and Permanent Residents (PRs), in terms of numbers and percentages respectively, did not apply to withdraw $5,000 or more from their CPF accounts upon reaching the age of 55; (b) how many have left more than the Minimum Sum required in their CPF accounts; and (c) how many PRs have withdrawn and cancelled their CPF accounts, in terms of number and percentage of the total number of PRs, for the past 10 and 20 years respectively.
Mrs Josephine Teo: As of end 2017, 42% of those who turned age 55 in 2016 did not withdraw any Central Provident Fund (CPF) monies within a year of their 55th birthday. This includes the first $5,000 from the Ordinary and Special Accounts (OA and SA) which members can withdraw unconditionally, monies above their cohort Full Retirement Sum, as well as monies above the Basic Retirement Sum (BRS) which can be withdrawn using property charge or pledge. For those who did withdraw, the majority, about six in 10 members, withdrew up to $5,000.
For the same cohort, about 53% of active members met their Full Retirement Sum in cash and pledge at age 55 in 2016, that is, able to set aside the Full Retirement Sum fully in cash or met the BRS in cash and provided sufficient property pledge or charge. Of this group, about five in 10 left additional funds in their CPF OA or SA. Based on our observations, members do so because they have no immediate need of the money, or they wish to take advantage of the higher CPF risk-free interest rates.
From 2013 to 2017, an annual average of 13,500 CPF members, or 0.4% of total CPF members, withdrew their CPF monies when they left Singapore. This includes former Singapore Citizens (SCs), former Permanent Residents (PRs) and foreigners who contributed to the CPF before 2003. Former SC and PR members can leave their monies in the CPF after they have given up their Singapore Citizenship or Permanent Residency. CPF Board does not track the number of former SC and PR members who choose to retain their monies in the CPF.