Minister Lim Boon Heng said yesterday that the CPF Minimum Sum withdrawal age may be raised to 65 (from 62).
Note that you can still withdraw money from your Ordinary and Special Accounts when you reach 55 years old, subject to the rules given on this CPF page.
Example: If you are retiring today and have a total of more than $199,200 in your Ordinary and Special Accounts, you need to set aside the CPF Minimum Sum of $99,600 and you can withdraw the rest from the 2 accounts (assuming you have the Medisave Required Amount of $11,500). You can also withdraw from your Medisave Account after setting aside the Medisave Minimum Sum of $28,500 in that account.
So what will Minister Lim’s proposal affect? It’s the starting age at which you will start receiving your monthly payment of $790, which is drawn from that CPF Minimum Sum that you have set aside.
That starting age is currently 62. It will go up to 65 if the proposal goes through.
(Please also note that the figures used in the above illustrations apply to a person retiring today. Some of the figures, such as the Medisave Required Amount, are being adjusted upwards annually in accordance with previously announced policies.)