Rationale for Maintaining Distinction between Citizens and PRs' CPF Withdrawal Period

90 Mr Yip Hon Weng asked the Minister for Manpower (a) what is the policy rationale for maintaining the distinction of allowing citizens to withdraw CPF savings only after the age of 55, while permanent residents (PRs) may withdraw CPF monies in full upon relinquishing PR status and leaving Singapore; (b) how does the Ministry balance the need to protect citizens’ retirement adequacy with ensuring fairness across different CPF members.

Dr Tan See Leng: The Central Provident Fund (CPF) system is a key pillar of Singapore's social security which helps Singapore Citizens (SCs) and Permanent Residents (PRs) set aside savings for their retirement, housing and healthcare needs.

For those who renounce their Citizenship or Permanent Residency status, their participation in the CPF system and all other CPF schemes will cease and can, thus, withdraw their CPF monies in full. Any unwithdrawn savings will cease to earn the prevailing CPF interest rates.

Similarly, the CPF withdrawal rules are also applied consistently across SCs and PRs. For example, to safeguard retirement adequacy, SCs and PRs are required to set aside the full retirement sum (FRS) at age 55 or up to half of FRS with a property pledge, to provide a basic payout for life from age 65. Members can also make withdrawals from their CPF savings from age 55 onwards, subject to prevailing withdrawal rules.