CPF Withdrawal: 2 Ways

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There are 2 ways to withdraw from CPF. Each can be viewed as “easy” or “hard” depending on how you look at it. 🙂

Let’s first talk about the more straightforward one:

You work diligently and both you and your employer contribute to your CPF accounts (as mandated by law).

Then at age 55, you can withdraw from your Ordinary and Special accounts after setting aside the Minimum Sum, which currently stands at $99,600 but will go up to $120,000 in future. (See Q&A in CPF website.) [Added 1 Sep 2007: You also need to set aside the Medisave Required Amount, which is now $11,500 but will be increased to $25,000 in 2013.]

Then you retire. At what age? It’s been proposed that the official retirement age should be 67. Maybe it’ll be 70 by the time we get older. I don’t know.

It’s only when you reach this official retirement age that you can start to draw down from the Minimum Sum. In effect, you will receive a monthly payout of a few hundred dollars until the balance runs out in about 20 years or so. The government is now considering having a “tail-end” annuity component to help those who, er, continue to live after the balance is emptied.

So what’s easy and what’s hard? In my view, the first withdrawal at age 55 seems “easy”. What is “hard” is the slow stretched-out withdrawal of the remaining Minimum Sum starting at age 62 (or 65, or 67, depending on when the new policies kick in).

Did I say there’s a second way?

Ha. It’s meant to be a tongue-in-cheek “solution”. I believe most of us will not even seriously consider it. Here it is:

Renounce your Singapore citizenship (or permanent residency). That is, emigrate to Australia, US, UK, or wherever. Leave Singapore for good. Only then can you withdraw your CPF in full. (See page on leaving Singapore in CPF website.)

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89 Comments

  1. Another method is go die and your children will help you withdraw the money. Haha…

    Seriously, I’m not expecting to see those money. They are more like for my children only.

  2. Among my band of friends (those born in the 70’s),we are just waiting to renounce our Singapore citizenship.

    All of us have worked and lived in another country and understand what the government is trying to do by toying with the CPF.

    What is holding us back is our parents. Once their Singapore citizenship “expire”, its time we renounced ours.

  3. there are quitters who are hailed as heroes when they come back. they got all their money in CPF and yet are honoured as `good boys’ who come back to serve (read:work in) Singapore. i want to be like one of them.

  4. In the roulette of trying to live past 85 years old, it is unfair to force everyone to contribute to it.

    For most people, renouncing your citizen is not really a choice, but seems to be the ONLY choice as time goes by.

    It is easy to get the press to support why it is good for most. It is easy to set policies to get more to hire older workers. The problem is one of how many really live past 85 and how many employers really hire older workers.

    We live in a competitive old, no business exists for the good of humanity. Grow up and stop painting castles in the air.

    Let the hard working people draw their money. Stop denying them the fruits of their labour.

    If we must do something, why not use the huge reserves to do it? Use the interest/dividend income to fund the “Live pass 85 years old lucky draw”.

  5. Before the new policy, CPF make money by being one of the biggestt bank in Singapore. Now, it will be a bank and an insurance company that operate one of the biggest annuity program in the country. Well done the scholars in the public services to come up with this great idea.

    PS: The new policy prompted us to apply for Australia Citizenship now.

  6. is it possible to withdraw 100% from my cpf if we quit our citizenship or PR? I heard from someone that they allow you to withdraw only some % of total CPF fund. Does anyone has more info on this?

    Is it possible to withdraw money in full from Medisave account as well if we quit our citizenship or PR?

  7. is it possible to withdraw everything except the medisave in order to carry on with the medical insurance rather than letting it lapse? thanks.

  8. Does anyone know how easy or difficult it is for us to renounce our citizenship? Does the relevant govt body make the whole process unduly prolonged and awkward? We desperately need to access our hard earned CPF funds. Please help with advice.

  9. Application to renounce of Singapore Citizenship

    You MUST a Citizen of another country first before you can even give it up.

    The process is about 6 to 8 weeks upon reciept of application. So in order to answer whether it is hard or easy, depends on where you stand. You can wait until about you are to die to get the money or you can wait 6 to 8 weeks to get your money.

    Follow the following link:
    http://www.mfa.gov.sg/sanfrancisco/SGrenounce.html
    for information how to renounce it. Follow procedures exactly

    By the way to those who wish to return to Singapore as a Pernament resident or Citizen, you must pay back every cent that you have withdraw from the CPF.

    It is better to renounce it and come back as a “Foreign Talent” and get paid something like a 6 figure salary.

  10. Does anyone know whether there’s a tax imposed when we draw CPF money and leave Singapore for good?
    I heard in some countries, the govt will consider the money you take from retirement acct as income and thus taxable… not sure here. Thanks.

  11. Yes, some countries do consider your superannuation as income and thus taxable. You will be needing to find out the tax laws of different countries to find out.

    What do you prefer? To pay the tax and get your money or not to get your money at all? None of the Singaporeans will get to see their money at all. A few miserable hundred dollar every month, it is not enough to buy peanuts in Singapore!

  12. I say CPF is offering quite attractive interest in today’s environment. So leave it there unless you are in need of money like I do. Bottom line, leave Singapore and draw down your own money. The question is when. The minimum sum scheme is designed to let you feed yourself in old age. So any old age withdrawal by renunciation of citizenship is definitely welcomed in the context of Singapore. I wonder why we pay our taxes for?

  13. I don’t think CPF will allow you to remit your CPF money directly from your CPF accounts. If somehow you can withdraw from your accounts in cash, then you can remit to wherever you want. The usual remittance fees apply of course.

  14. It’s easy if you’re a professional or have relatives there, not so if you’re in the poorer segment.

    But why did you ask right after National Day? Don’t you have that tingly feeling that

    “This is Home, truly
    Where I know I must be
    Where my dreams wait for me
    Where that river always flows
    This is home, surely
    As my senses tell me
    This is where I won’t be alone
    For this is where I know it’s home”

  15. Hi, I have two sons who left Singapore when they were 8 and 4 respectively. We have citizenship in another country. However, the boys have been black-listed for not returning to do their NS. My husband and I are about to apply to renounce our citizenship. Does anyone know if our boys’ status will affect our application to renounce our citizenship? We need to extract our funds from CPF so that we can clear our mortgage. Mortgages are absolute killers! I would appreciate advice on this situation. Thanks very much.

  16. There’s a pianist who came back and only got “slapped” with a small fine for not serving NS. You can get a lawyer to argue about fairness if your boys got worse than a slap, but then again I don’t think your boys are pianists are they?

  17. Hi Anon, thanks for the response. Sadly, my boys are not professional pianists although one has fared very well on the local circuits. Still, I would love any feedback or advice if anyone has any regarding the likelihood of the Singapore govt using our boys’ status against us and hence, refusing to accept our applications for renunciation of citizenship.

    I look forward to hearing more from the forum. Many thanks.

  18. Hi BH, do you mind sharing how you obtained your new citizenship? Thanks and I wish you success in renouncing your Singapore citizenship – it’s relatively worthless (PRs and “new citizens” are first class here) 🙂

  19. Hi KimTan

    My family and I applied for NZ PR many years ago & moved here to live. Subsequently, we were granted citizenship. Now that we have made our home here we do not see ourselves moving back to live in Singapore.

  20. I am not sure what you are recommending but my internet watchdog warns that the site you have asked me to visit is classified as a porn site. I am not impressed!

  21. That particular forum is not what your watchdog says it is. Try viewing that thread I recommended and you’ll know. If indeed it’s not what you want and the info is rubbish, then just close your browser.

    I’m just trying to help.

  22. The following is an excerpt from the thread, which has lots more good info in my opinion (nothing of the sort your watchdog says):

    “NS Obligations

    Those with boy migrating and who leave these shores before their boys reach the age 11 yrs (the boys) are not obliged to do NS but have to follow the necessary procedures to get exemption. Passports expire at the age of 11 and that should be an indicator.

    Once you have left, do not renew the password, apply for NRIC etc as one is deemed to (have) enjoyed the privileges of citizenship and NS become mandatory.

    At age 13, apply to CMPB for exit visa stating that your family has migrated and the kids (are) enrolled in a school in the new country. No bond is required. CMPB uses an outsourced agency to handle call centre matters and they have no clue about migrant cases. Go directly to CMPB.

    At age 16.5, you need to register for NS (an interesting term as you are actually seeking deferment). You can do it by post to CMPB again citing that you have migrated, acquired new citizenship and the kids (are) schooling. You will be given deferment until the age of 21 where the kid must decide if they want to hold on (to) their Singapore citizensip. If they do, (then) NS must be served. If not, exemption (is) for ever.

    All Singaporeans, male and female cannot renounce their citizenship until age 21, and if they have acquired new citizenship, they will be dual citizens….”

    AND LOTS MORE there. Judge for yourself. I’m not impressed with your watchdog.

  23. More excellent info from that “undesirable” site:

    “Dual Citizenship

    With many countries moving towards retaining talent, previous restrictions on holding more than one citizenship by a number of governments around the world has been set aside.

    Australia which prior to April 2002, had it in law where Dual Citizenship was explicitly prohibited now allows it and they have gone one step further by allowing ex-citizens to re-apply their citizenship which they previously renounced.

    There is no law in Singapore that prohibits dual citizenship. The law however provides the govt to take it away from you for reasons best known to them. No one has been prosecuted for having dual citizenship. Since there is no law prohibiting it, there is no law allowing for punishment…”

  24. Hi Boy

    It would seem that I owe you an apology. I am sorry that there seems to be a misunderstanding within the watchdog that we use regarding the site. I am very grateful that you have taken the initiative to set out the excerpts. I have had a rather nasty experience with porn being inadvertently found while searching for seemingly innocent material. Consequently, we have everything filtered at the highest level.

    This information seems rather helpful although it’s always a potential concern when dealing with citizenship type issues in Singapore. We are unable to get clear indications sometimes and am just a tad nervous about the whole proceedings from the time of our application to renounce our citizenship. We have little contact with Singapore and don’ know what red tape measures are in place.

    Appreciate your efforts and the advice. Thanks.

  25. Hi Boy

    Just wanted to let you know that the application to renunciation and subsequent CPF withdrawal went smoother than I could have ever anticipated. Thanks for the support and advice from everyone on this blog. I would like to encourage those who are thinking of going down the same path, to give the matter serious consideration before doing it and then to proceed with confidence when they are sure. Thanks to one and all.

  26. Those that had sons must be careful. If your boy did not go thru NS, don’t come back less they may get themselves arrested. Better to migrate 1st than give birth.

  27. Hi…can I know what is the first step I shall take to renounce my Singapore Citizenship as I intent to move elsewhere? What is the process and the duration time? Thank You

  28. Danial, have you obtained citizenship elsewhere already? If not, you can’t apply for renunciation. In my case, I find the process relatively simple. Mine was approved within 6 weeks (done last year).
    I assume you already residing overseas. Contact the overseas Singapore consular office or Singapore embassy. Request for the application form for renunciation of citizenship. That application form will tell you what documents required.

  29. Ok…Thank you Han and Renouncier for your help…Ya I currently residindg in overseas and had citizenship here.

  30. Hi…do you have any idea about the CPF withrawal ? As I’m not so clear abt the Notary Public or the High Comm offical seal. Where to get that? I have to get it in Singapore or I can do it overseas?

  31. Danial,

    You can find the form for CPF withdrawal in the CPF Board website FAQ section, select ‘Can I withdraw my CPF…..’.

    It can be done overseas. In my case, it’s also a lot cheaper to use the Singapore High Commission consular service. Just need to pre-book appointment and bring all necessary documents along. Of course you can also go to your solicitor but not every law firm got notarial service. So you need to check.

    You need to get your application for renunciation approved first then can apply to withdraw CPF.

  32. I (Malaysian) used to work in Spore, btw 1993/95, and had made contributions under the CPF scheme. I am now working in Kuala Lumpur, and have no intentions on returning to Spore to work. Is it possible to fully withdraw my CPF saving balance?

  33. Hi BH, i’m thinking of renouncing my Singapore PR , and shall I do it in person in Singapore or in Australia (i’m residing in Australia). If I submit docs thru Australia, it will takes 1 month for approval. I’m not sure if I do it in person in Spore, does the approval takes 1 mth as well or immediate approval? Any comments?

    Rgds

  34. Hi Weeny

    I’m not sure if you mean citizenship or permanent residency. Either ways, I believe the processing time is almost the same. The only delay might be in Australia where the High Commission might not send the docs through to Singapore until they have gathered enough to justify a mailbag across. that’s what happens here in NZ. However, you have enough of a population there to make a bag up sooner than we would here in Aotearoa. I can’t see any real need to go personally to Singapore to renounce your PR. Just ensure that your docs are complete, forms meticulously filled in and everything safely delivered into the hands of the officials at the High Commission in Australia. Always take a photocopy of every page of every document you are sending because you have to send away the originals. All the best.

  35. Hi BH, thanks for your reply. I’m referring to Singapore PR. Yes, that’s why I’m a bit speptical whehter to do it in person or mail? Yes, my main concern is the processing time and the whether will the mail reach the embassy safely. However, I do appreciate your reply and comments. Thanks again!

  36. Hi BH, I want to know when you withdraw you CPF, do you need to pay Income Tax (CPF amount) to Singapore govement? you get full amount in your CPF account?

  37. Hi Boy, The information about NS Obligations is very useful, but I don’t know is same for PR? My son will study oversea, he is PR. He can go NS after he come back.

  38. How long does the renounciation process take from start to finish? Does the CPF board take a long time to process? I read from the CPF site that it take about 14 days to send the funds to a SG account? Would appreciate pointers from those who have gone this route.

  39. Hi
    I am a 52 yo out of job ex bank officer. A true blue $ingaporean (with no criminal record etc) trying to jump out of the boiling water but lack the necessary papers/skills to be readily accepted by an English speaking country. This might not be the appropiate site for posing my question but I am seriously desperate enough to consider any suggestion and extend my apology if the subject is not in line with the current discussion. Thanks

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