1

CPF:Your Assurancein Retirement

Reaching

55

1

C O N T E N T S

02 Introduction

03 Decisions to be made:

• How much monthly payouts do you need during retirement?

• How much can you withdraw at 55? How to withdraw?

• Should you continue to save with CPF?

• Should you join CPF LIFE?

• Which CPF LIFE plan should you choose?

12 Top up for tax savings and earn higher interest

14 CPF beyond 55

16 Conclusion

17 Annex A – Case Studies

20 Annex B – CPF Investment Scheme and CPF Education Scheme

21 Glossary – Important Terms and Figures

23 Notes

At 55, it’s time to make your next move

The information in this publication applies to members turning 55 from 1 July 2015 to 31 December 2015.

Remember

three key

points:

Make aninformed

decision onyour desired

payouts.

1

JoinCPF LIFEto enjoylifelongmonthlypayouts.

2

TOP UPyour and your

loved ones’retirementsavings.

3

2

Introduction

In the lead up to your retirement years, you may have questions about how your

CPF will provide for your retirement needs. When you reach the milestone age of

55 in your CPF journey, two events take place:

• A Retirement Account is created to set aside your retirement sum, which will

provide you with a monthly income in old age.

• You can withdraw a portion of your CPF savings if you so choose.

While withdrawal is an option open to you, you should consider stretching the

value of your CPF savings by keeping it in your accounts so that there will be more

retirement savings in your golden years. Apart from the attractive interest rates

earned in your CPF accounts, you can make regular top-ups to your CPF to boost

your retirement savings. Let your total CPF savings count towards a proportion of

your overall retirement provisions.

Singaporeans are living longer. It is an increasing concern that present retirement

funds may not be enough to last throughout retirement. About half of Singaporeans

who are 65 years old today are expected to live beyond the age of 85 and a third

of them will live beyond 90 years old. Having an income throughout old age is

more important than ever. To ensure you have a monthly income for as long as

you live, you can use your Retirement Account savings to join the CPF Lifelong

Income For the Elderly (CPF LIFE) scheme.

3

When you turn 55 years old, we will create your Retirement Account and transfer

some of your CPF savings from your Special Account and/or Ordinary Account

into this account to form your retirement sum.

You can buy a CPF LIFE annuity using your retirement sum to receive lifelong

monthly payouts from your payout eligibility age, which is currently at age 65.

Depending on your desired CPF LIFE monthly payout and your CPF balances, you

can choose from a range of payout options that best suit your needs in retirement.

To help you plan early for retirement, the Basic Retirement Sum will be made known

to you ahead of time. For each successive cohort of members turning 55, payouts

need to be higher to account for long term infl ation and rising standards of living.

Correspondingly, the Basic Retirement Sum to be set aside has to increase.

How much monthly payouts do you need during retirement?

Your monthly payout1

for life from 65

Retirement Account savings

required at 55

If you own a property

and choose to pledge

your property.

$660 - $720 Basic Retirement Sum (BRS)

$80,500

If you do not own a

property or choose not

to pledge your property.

$1,220 - $1,320 Full Retirement Sum (FRS)

$161,000

The FRS is 2 x BRS.

If you wish to put more

savings in CPF LIFE.

$1,770 - $1,920 Enhanced Retirement

Sum (ERS)2

$241,500

The ERS is 3 x BRS.

$83,000

$680 - $740

AGE 55IN 2017

$85,500

$700 - $760

AGE 55IN 2018

$88,000

$720 - $780

AGE 55IN 2019

$90,500

$740 -$800

AGE 55IN 2020

AGE 55 IN 2016

$80,500

$660 - $720

Basic Retirement

Sum

BASICMONTHLYPAYOUT1

FOR LIFEFROM 65

1 Payouts are estimates based on CPF LIFE Standard Plan parameters in 2016.2 Available from January 2016.

OA + SA+ MA

4

How much can you withdrawat 55?

To calculate how much you can withdraw, you need to fi rst work out your X and

Y as shown below.

X You can withdraw What does this mean?

X < $5,000 X You can withdraw all of

your X.

Y stays in your Medisave

Account.

$5,000 < X < $166,000 $5,000

If you have Retirement

Account savings above

the Basic Retirement

Sum of $80,500,

you can choose to

withdraw the amount

by pledging your

property.

You can withdraw $5,000

from your Ordinary and

Special Accounts. The

remainder will form your

retirement sum in your

Retirement Account.

Y stays in your Medisave

Account.

X > $166,000 X - $161,000 - Medisave

Minimum Sum shortfall

If you have Retirement

Account savings above

the Basic Retirement

Sum of $80,500,

you can choose to

withdraw the amount

by pledging your

property.

You can withdraw $5,000

and any excess CPF

savings after setting

aside the Full Retirement

Sum of $161,000 and

the current Medisave

Minimum Sum of $43,500.

Y stays in your Medisave

Account.

Ordinary Account

Special Account

Medisave Account

$43,500

X

Y Y =

Medisave Account

savings up to the

Medisave Minimum

Sum of $43,500

Ordinary Account +

Special Account +

Medisave Account

savings above

$43,500

X =

5

Here’s an example on how much a typical CPF member can withdraw. Ms Anita

has just turned 55. A Retirement Account is created on her 55th birthday. Ms Anita’s

X is between $5,000 and $166,000.

X = $45,000 + $55,000 = $100,000

Ms Anita can choose to withdraw $5,000 of her CPF savings from her Ordinary

and Special Accounts. The remaining amount of $95,000 will form her retirement

sum in her Retirement Account.

If she owns a property, she can choose to set aside her Basic Retirement Sum of

$80,500 in her Retirement Account to receive a monthly basic payout of $660 to

$720 from age 65 for life.

She can then withdraw $5,000 from her Ordinary and Special Accounts, and an

additional $14,500 from her Retirement Account by pledging her property.

6

How to withdraw?

You will receive a letter from us a few months before your 55th birthday. You can

apply to withdraw your CPF once you receive the letter or any time later.

Ways to apply for withdrawal

Option 1: Online applicationApply online at www.cpf.gov.sg. You will need your SingPass and a OCBC, POSB

or UOB account.

Option 2: Form applicationSend us your application using the form (RWD-55) enclosed with the letter.

Complete the application form and mail to:

CPF BoardRetirement Withdrawals Department

79 Robinson RoadSingapore 068897

Earn

Attractive

Interest

7

Should you continue to save with CPF?

Withdrawing your CPF savings once you turn 55 years old is not compulsory.

Tip 1 – You can still make a withdrawal later!

If you do not withdraw your CPF savings at 55 years old, you can still make a

withdrawal at a later date.

Also, you do not have to take out the full amount at one go. You can make a

partial withdrawal and save the remaining money for your next withdrawal. For

example, if you can withdraw $5,000, you can choose to withdraw $2,000 which

would leave you $3,000 for your next withdrawal.

Tip 2 – Earn attractive interest!

Your CPF savings can continue to grow with the attractive interest earned in

your accounts, if you choose not to make a withdrawal at 55 years old. Your CPF

accounts currently earn up to 5% interest per year3. Members with lower CPF

balances can earn up to 6% interest per year4.

Age 55 and above (NEW)

CPF Balances Interest Rate5

First $30,000 6%

Next $30,000 5%

Amounts above $60,000 4%

Tip 3 – You can still use your Ordinary Account savings to pay your housing loan!

If you need to continue using your Ordinary Account for your housing payments

after age 55, you may apply to set aside some Ordinary Account savings for this

purpose before they are transferred to your Retirement Account. However, this

means you will set aside a lower retirement sum.

3 Currently, your CPF savings in the Ordinary Account earn a guaranteed interest rate of 2.5% per year, while savings in the Special, Medisave and Retirement Accounts earn guaranteed interest rates of 4% per year. The fi rst $60,000 of your combined CPF balances, of which up to $20,000 from your Ordinary Account, earns an extra 1% interest per year. Combined balances refer to the total balances in your Ordinary, Special, Medisave and Retirement Accounts, including the annuity premiums for CPF LIFE less any payouts made.

4 With effect from January 2016, an additional extra interest of 1% per year will be given on the fi rst $30,000 of your combined CPF balances (for members aged 55 and above). This is on top of the existing 1% extra interest on the fi rst $60,000 of balance.

5 Based on prevailing interest rates on balances in Special, Medisave and Retirement Accounts. Balances in Ordinary Account can earn up to 4.5% for members aged 55 and above.

8

With CPF LIFE, you will have the assurance of receiving monthly payouts from your

payout eligibility age for as long as you live.

You will be placed on CPF LIFE if you are a Singapore Citizen or Permanent Resident

born in 1958 or after, and have at least:

(i) $40,000 in your Retirement Account when you reach 55 years old; or

(ii) $60,000 in your Retirement Account when you reach 65 years old.

If you are not placed on CPF LIFE, you can apply to join CPF LIFE or remain

on the Retirement Sum Scheme, which provides you with a monthly payout

for about 20 years.

Choose your CPF LIFE plan

We will invite you to choose your CPF LIFE plan nearer to your payout eligibility age.

You can choose between:

• CPF LIFE Standard Plan; or

• CPF LIFE Basic Plan

Choose the plan that best meets your retirement needs. Each CPF LIFE plan

provides a different combination of trade-offs between the amount of monthly

payouts that you will receive and the bequest that you will leave for your

benefi ciaries.

If you do not choose a plan before your 70th birthday, we will automatically

place you on the CPF LIFE Standard Plan. The CPF LIFE annuity premium will be

deducted from your Retirement Account at the point of policy issuance.

Should you join CPF LIFE?GoldenYears

9

If you choose the CPF LIFE Standard Plan…

We will deduct the entire savings in your Retirement Account as the annuity

premium at the point of policy issuance. You are eligible to receive monthly

payouts from your payout eligibility age for as long as you live.

If you choose the CPF LIFE Basic Plan…

We will deduct a portion of your Retirement Account savings for the annuity

premium at the point of policy issuance. The actual amount deducted will depend

on your age and gender. We will inform you on the amount to be deducted when

your policy is issued. The rest of your Retirement Account savings will stay in your

Retirement Account.

You will receive monthly payouts from your Retirement Account until one month

before you reach 90 years old. Once you reach 90 years old, you will continue to

receive monthly payouts from the annuity fund for as long as you live.

I n f o r m a t i o n B o x

From 1 January 2016, you will have more fl exibility to plan for your retirement.

1. You have the option to start your payouts later, up to age 70. For each year

deferred, your monthly payouts permanently increase by about 6% - 7%.

2. If you turned 55 from 2013, you have the option to withdraw up to 20% of

your Retirement Account savings from 65 years old (includes the fi rst $5,000

withdrawable from age 55).

example

Basic Retirement Sum at

55 years old: $80,500.

This grows to about $125,0006

at 65 years old.

Joins CPF LIFE with entire

Retirement Account balance.

Option A

Starts CPF LIFE

payout at

65 years old.

Monthly payout

for life of about

$660 - $7207.

Defers payout

start age to

70 years old.

Monthly payout

for life increases

to about

$885 - $9657.

Option B

6 Based on CPF interest rates of up to 6% per year for members aged 55 and above from 2016.7 Payouts are estimates based on CPF LIFE Standard Plan parameters in 2016.

10

I n f o r m a t i o n B o x

What if I do not have $20,000 in my Retirement Account?You or your loved ones can make a cash or CPF top-up to your Retirement

Account to make up this amount. (See page 12 for more details)

Receiving your CPF LIFE payout

We will pay the monthly payout in your bank account using Inter-Bank GIRO (IBG)

by the 4th working day of each month. If the IBG is unsuccessful because you have

closed your bank account, we will pay the payouts into your Ordinary Account.

Benefi tting from CPF LIFE with the LIFE Bonus

You can receive a LIFE Bonus of between $1,450 and $2,600 if you are a Singapore

Citizen with at least $20,000 in your Retirement Account and have either:

(i) Been placed on CPF LIFE; or

(ii) Informed us before your 56th birthday on your decision to join CPF LIFE.

The LIFE Bonus will be paid into your Retirement Account to enhance your monthly

CPF LIFE payouts.

If you have less than $20,000 in your Retirement Account before your 56th

birthday, your LIFE Bonus will be proportionately reduced. The amount of LIFE Bonus

that you can receive depends on your annual Assessable Income (AI) and the

Annual Value (AV) of your home.

The LIFE Bonus fi gures above are applicable to members turning 55 from 1 January 2015 to 31 December 2015.

For more information on the LIFE Bonus, please visit www.cpf.gov.sg.

AI AV of Property $9,600 or less Between $9,600and $13,000

$27,000 or less $2,600 $2,100

Between $27,000and $60,000 $2,100 $1,450

11

Leaving CPF LIFE

The CPF LIFE payouts will stop upon death and your benefi ciaries will receive a

bequest (if any is due). Otherwise, once you have joined CPF LIFE, you can only

leave the scheme for the following reasons:

• You have a medical condition which causes you:

– To be permanently unfi t for any employment;

– To have severely reduced life expectancy; or

– To be terminally ill.

• You are about to leave/have left Singapore and West Malaysia permanently

with no intention of returning for work or to live.

• You are a Malaysian Citizen and have left Singapore permanently to live in

West Malaysia.

• You are fully exempted from setting aside the retirement sum in your Retirement

Account because you are receiving a monthly pension/annuity payout.

Both the CPF LIFE Standard Plan and the CPF LIFE Basic Plan have a refund feature.

If you decide to leave your plan, you will receive a refund of the savings used

to join CPF LIFE minus any monthly payouts received. The refund is your unused

annuity premium. You may not receive a refund if we have already paid out all

your savings used to join CPF LIFE.

TaxSavings

Top Up For

12

Top up for tax savings andearn higher interest

If you can, it’s well worth adding more to your CPF. Top up to boost your or your

loved ones’ Special Account or Retirement Account savings. Topping up to the

Enhanced Retirement Sum (available from January 2016), a sum set at three

times the Basic Retirement Sum, gives you the opportunity to enjoy a higher

monthly payout.

Under the Retirement Sum Topping-Up Scheme, you can even get tax relief8 for

cash top-ups. The tax relief is up to $7,000 per year if you top up for yourself and

an extra $7,000 per year if you top up for your family members.

What are the criteria for cash and CPF top-ups?

You can do a cash top-up to your and your loved ones’ CPF accounts, up to the

current Full Retirement Sum.

You can also transfer your Ordinary Account savings to your loved ones’ CPF

accounts. You may do so after meeting the Full Retirement Sum you need to

set aside when you turn 55 with your net balances in the Ordinary, Special and

Retirement Accounts including amounts withdrawn for investments.

Amount of top-up that can be received

For recipients below 55 years old

Current Full Retirement Sum –

Net Special Account Balance – Amounts

withdrawn from Special Account under the

CPF Investment Scheme (CPFIS-SA)

For recipients55 years oldand above

Current Full Retirement Sum –

Retirement Account Savings9

8 Terms and conditions apply9 Excludes interest earned since 55 years old, any government grants and monies withdrawn.

13

I n f o r m a t i o n B o x

Learn how to top up onlineVisit http://mycpf.cpf.gov.sg/Members/online-demo

From 2016, you will have additional fl exibility to transfer your CPF savings above

the Basic Retirement Sum to your spouse’s CPF account. With this, both you and

your spouse can enjoy the benefi ts of the extra interest paid on the fi rst $60,000

of combined CPF savings. Refer to the example below.

After the spousal transfer, Mr and Mrs Tan would enjoy an additional $2,000 in

interest which would help them boost their retirement payouts. Mrs Tan will now

enjoy higher monthly payouts for life.

Before spousal transfer…

At age 55, Mrs Tan

has $35,000 in her

Retirement Account.

At age 55, Mr Tan

has $100,500 in his

Retirement Account.

At age 65, her Retirement

Account balance will have

grown to about $59,000 which

will provide her with monthly

payouts for about 20 years.

At age 65, Mr Tan will be

placed on CPF LIFE with a

Retirement Account balance

of about $156,000.

After spousal transfer…

Mrs Tan now has

$55,000 in her

Retirement Account

at age 55.

Mr Tan now has

$80,500 in his

Retirement Account

at age 55.

At age 65, Mrs Tan will be

placed on CPF LIFE with a

Retirement Account balance

of about $90,000.

At age 65, Mr Tan will be

placed on CPF LIFE with a

Retirement Account balance

of about $127,000.

Transfers $20,000 to

Mrs Tan’s CPF account

14

Beyond

55If you decide to continue working, you and your employer will still contribute to

your CPF. However, do note that the contributions to your Ordinary Account will

reduce, and this may affect how you manage your housing loan payments. So,

try to pay off your housing loan by 55 years old!

The table below shows the CPF contribution rates for employees aged 50 to 65.

If you continue to work and contribute to your CPF after 55 years old, you may top

up your Retirement Account using the new CPF contributions to help build up your

retirement savings12. You can also withdraw the excess if you have set aside your Full

Retirement Sum or Basic Retirement Sum with suffi cient property charge/pledge.

Housing repayments

If you continue working after 55, your future Ordinary Account contributions can

also be used for your housing loans.

You can use your Retirement Account savings (excludes top-up monies, interest

earned, and any government grants received) above your Basic Retirement Sum

for your housing needs.

Employee’s age (years)10

Employer contribution

rates(% of wages)11

Employee contribution

rates(% of wages)11

Totalcontribution

rates(% of wages)11

Above 50 to 5517

(16 + 1)

20

(19 + 1)

37

(35 + 2)

Above 55 to 6013

(12 + 1)13

26

(25 + 1)

Above 60 to 659

(8.5 + 0.5)7.5

16.5

(16 + 0.5)

CPF beyond 55

10 An employee will move to the next age group in the month after his 35th, 45th, 50th, 55th, 60th and65th birthday.

11 Increases in the contribution rates, applicable from January 2016, are shown in bold.12 It may then be used to buy an additional CPF LIFE annuity when you reach your payout eligibility age.

15

I n f o r m a t i o n B o x

If you own an HDB fl at, you can generate income from your fl at for your

retirement needs.

You may:

• Move to a smaller fl at or Studio Apartment and sign up for the Silver Housing

Bonus to get a cash bonus when you top up to your Retirement Account

• Sign up for the Enhanced Lease Buyback Scheme and top up your

Retirement Account to get a cash bonus

• Rent out your whole fl at or room(s)

If you have any questions, please call HDB’s toll-free hotline at 1800-555-6363,

or visit www.hdb.gov.sg/retirement

The above is subject to the eligibility conditions under HDB’s prevailing policies.

13This is the interest you would have earned had you not withdrawn your CPF savings for the property.

Insurance premiums

You can continue to use your Ordinary Account savings for insurance premiums

under the Home Protection Scheme (HPS)/ Dependants’ Protection Scheme

(DPS), after setting aside your retirement sum at age 55.

Sale of property

If you sell your property, you need to refund the CPF that was used to buy it and

the accrued interest13. If you had also withdrawn from your Retirement Account

by pledging your property, you need to refund the pledge amount as well. The

amount refunded will be used to build up your retirement savings. The balance

of the housing refunds will then be paid to you, after setting aside the current

Medisave Minimum Sum.

16

Conclusion

Now that you have had the opportunity to consider your CPF planning, remember

three points:

Make an informed decision on your desired payouts.

Join CPF LIFE to enjoy lifelong monthly payouts.

Top up your and your loved ones’ retirement savings.

Annex A

17

Let’s meet Ms Anita’s friends: Mr Ahmad, Mr

Ravi, and Mdm Polly. They have different Xs and

Medisave savings in their CPF accounts at 55.

Let’s start with Mr Ahmad.Mr Ahmad’s X is more than $166,000.

His Medisave Account has $43,500.

I n t r o d u c i n g M s A n i t a & F r i e n d s . . . M r A h m a d ’s C P F S a v i n g s

$5,000 $166,000

$43,500

Medisave Account

X

MdmPolly

Mr Ahmad

Mr Ravi Ms Anita

How much can you withdraw?

Ordinary Account

Medisave Account

Special Account

Retirement Account

Assume Mr Ahmad has:

$100,000

$200,000

$43,500

R e t i r e m e n t A c c o u n t S a v i n g s

$100,000

$161,000

$39,000$43,500

X = $100,000 + $200,000 = $300,000

$161,000 will be transferred to his Retirement Account fi rst.

H o w m u c h c a n M r A h m a d w i t h d r a w ?

Mr Ahmad can choose to leave his Full Retirement Sum of

$161,000 in his Retirement Account to receive a monthly

payout of $1,220 to $1,320 from age 65 for life.

He can then withdraw the balance of $139,000 from his

Ordinary and Special Accounts, as he has set aside his

Full Retirement Sum of $161,000 and the current Medisave

Minimum Sum of $43,500.

If he owns a property, he can also choose to set aside his

Basic Retirement Sum of $80,500 in his Retirement Account

and receive a lower monthly payout.

In this case, he can withdraw $139,000 from his Ordinary

and Special Accounts, and an additional $80,500 from his

Retirement Account by pledging his property.

Retirement

Account will

be created

on his 55th

birthday

Ordinary Account

Medisave Account

Special Account

Retirement Account

Annex A

18

How much can you withdraw?

How about Mdm Polly? Mdm Polly’s X is more than $166,000. However, Mdm Polly’sMedisave Account has less than $43,500.

She has an Medisave Minimum Sum shortfall.

H o w m u c h c a n M d m P o l l y w i t h d r a w ?

M d m P o l l y ’s C P F S a v i n g s

Assume Mdm Polly has:

$100,000

$180,000

RA will be created

on her 55th birthday

$20,000

M e d i s a v e M i n i m u m S u m S h o r t f a l l

Mdm Polly’s Medisave Account has $20,000. This is $23,500

short of the Medisave Minimum Sum of $43,500. Therefore,

$23,500 is transferred to her Medisave Account.

R e t i r e m e n t A c c o u n t S a v i n g s

$100,000

$161,000

$19,000 $20,000

X = $100,000 + $180,000 = $280,000

$161,000 will be transferred to her

Retirement Account fi rst.

Mdm Polly can choose to leave her Full Retirement Sum of

$161,000 in her Retirement Account to receive a monthly

payout of $1,220 to $1,320 from age 65 for life.

She can then withdraw the balance from her Ordinary and

Special Accounts after transferring $23,500 to Medisave

Account to make up the Medisave Minimum Sum of

$43,500. This means that Mdm Polly can withdraw $95,500

from her Ordinary and Special Accounts.

If she owns a property, she can also choose to set aside

her Basic Retirement Sum of $80,500 in her Retirement

Account and receive a lower monthly payout.

In this case, she can withdraw $95,500 from her Ordinary

Account, and an additional $80,500 from her Retirement

Account by pledging her property.

Ordinary Account

Ordinary Account

Medisave Account

Medisave Account

Special Account

Special Account

Retirement Account

Retirement Account

$155,000

$43,500

$95,500

$0

Ordinary Account

Medisave Account

Special Account

Retirement Account

$23,500 is transferred to

Medisave Account

Annex A

19

How about Mr Ravi? Mr Ravi’s X is between $0 to $5,000. He can withdraw all of his X.

M r R a v i ’s C P F S a v i n g s

Assume Mr Ravi has:

$3,000

$1,000

RA will be created

on his 55th birthday

$500

H o w m u c h c a n h e w i t h d r a w ?

BankAccount

$4,000

$500

X = $3,000 + $1,000 = $4,000

Mr Ravi can withdraw all of his Ordinary and Special

Accounts savings (i.e. $4,000) and nothing will be

transferred to his Retirement Account.

The $500 will remain in his Medisave Account for his or

his dependants’ healthcare needs.

How much can you withdraw?

OrdinaryAccount

Ordinary Account

MedisaveAccount

Medisave Account

SpecialAccount

Special Account

RetirementAccount

Retirement Account

20

Annex B Guide on decisions and actions you need to make on the CPF Investment Scheme (CPFIS) and CPF Education Scheme matters when you reach 55.

If you have set aside your Full Retirement Sum or Basic Retirement Sum with sufficient property charge/pledge

If you have not set aside your Full Retirement Sum or Basic Retirement Sum with sufficient property charge/pledge

Investments

Apply online through ‘My Request’ from the CPF website or complete form INV-Transfer.

Investments

Top up your Retirement Account/Medisave Account to meet your Full Retirement Sum and/or the current Medisave Minimum Sum before you can withdraw your CPFIS investments and SDS investments.

Education

Apply online through ‘My Request’ from the CPF website or complete form AES W1.

Education

Top up your Retirement Account/Medisave Account to meet your Full Retirement Sum and/or the current Medisave Minimum Sum before you can apply for waiver of the education loan.

Investments

CPFIS-Ordinary Account (CPFIS-OA)We will inform your agent bank to close your CPF Investment Account. You may approach the bank for the withdrawal of your investments and cash after we have notified you. Your investments will be transferred to your name. You can then liquidate them if you wish and have the money made from the sale paid to you directly.

CPFIS-Special Account (CPFIS-SA)We will inform your product provider(s) to transfer your investments to your name. You can then liquidate them if you wish and have the money made from the sale paid to you directly.

Special Discounted Shares (SDS)We will transfer your SDS to your Central Depository (CDP) Securities Account.

Service standards:

CPFIS-OA & SA• Form application

We will notify your agent banks and product providers within three working days from the day we receive your application. After that, agent banks and product providers will liaise with you to get more information for the release.

• Online application One working day

SDS• Form or online application

Within 15 working days from the day we receive your application and CDP transfer free (this includes CDP’s processing time).

Education• Form application 14 working days

• Online applicationUp to two working days

Up to eight working days if the application is submitted during the monthly Inter-Bank GIRO (IBG) deduction period, which typically takes place from the 15th to 23rd of each month. This is to take into account the bank’s processing time for monthly deductions from students’ IBG accounts.

What How

When you want to withdraw your CPFIS and Special Discounted Shares (SDS)investments, or apply for waiver of the education loan repayment

Upon successful application

Glossary

21

Basic Retirement Sum (BRS)

Full Retirement Sum (FRS)

Enhanced RetirementSum (ERS)– available from January 2016

Payout Start Age (PSA)

Annuity Fund/Lifelong Income Fund

Annuity Premium

Assessable Income (AI)

Payout Eligibility Age (PEA)

Annuity

The retirement sum to set aside at age 55 to receive a monthly CPF LIFE payout of about $660 - $720 from payout eligibility age. This sum is set at $80,500 for members who turn 55 between July 2015 and December 2016. This assumes that the member owns a property and does not need to pay rent.

The retirement sum to set aside at age 55 to receive a monthly CPF LIFE payout of about $1,220 - $1,320 from payout eligibility age. It is set at two times the Basic Retirement Sum (i.e. $161,000 for members who turn 55 between July 2015 and December 2016). This assumes that the member does not own a property or does not wish to pledge their property.

The retirement sum to set aside at age 55 to receive a monthly CPF LIFE payout of about $1,770 - $1,920 from payout eligibility age. It is set at three times the Basic Retirement Sum (i.e. $241,500 in 2016). CPF members who want to have higher monthly payouts can top up their Retirement Account to this amount.

This is the age at which CPF members have chosen to start their payouts. For members under the CPF LIFE scheme, they can choose to start their payouts anytime between age 65 to 70. For each year deferred, monthly payouts will permanently increase by 6 to 7 per cent for members under the CPF LIFE scheme.

The annuity fund, also known as the Lifelong Income Fund, consists of the annuity premium, the interest earned on the annuity premium and the extra interest earned by members on the CPF LIFE Standard Plan.

The annuity premium is the amount of your Retirement Account savings committed to CPF LIFE.

Your AI refers to your total annual income less approved deductions.

To work out your AI, we will use the assessment year before the year that we issue your CPF LIFE plan, as provided by IRAS.

For example, if we issue your CPF LIFE plan in 2015, we will use your AI for assessment year 2014 (that is, your income for 2013).

Formerly known as the drawdown age. It has been renamed to differentiate it from the payout start age (see below). This is the age at which CPF members are eligible to receive CPF payouts. It is currently at age 65 years old for members who are born in 1954 or later.

An annuity is an insurance product which provides you with a monthly income for the rest of your life.

Term Definition

Retirement Sum

Payout Age

Other Terms

Glossary

22

Beneficiaries

Bequest

Medisave Minimum Sum (MMS)

Medisave Minimum Sum (MMS) Shortfall

Property Charge

Property Pledge

Beneficiaries are the people who you have nominated to receive your CPF savings after your death. If a CPF nomination is not made, upon death, your CPF savings will be distributed by the Public Trustee in accordance to the intestacy laws of Singapore, which ensures that the welfare of your dependants are provided for.

A bequest is the money that you leave to your beneficiaries after your death. There may not be a bequest if the savings used to join CPF LIFE have been fully paid out in monthly payouts.

When you make a withdrawal from your CPF after 55, you will be required to set aside the Medisave Minimum Sum of $43,500 in your Medisave Account for your healthcare needs.

From January 2016, the MMS will be removed. You will no longer be required to top up your Medisave Account before making a CPF withdrawal at 55.

Your Medisave Account savings will remain in your Medisave Account and can be used to pay for your or your dependants’ healthcare needs.

In view of this upcoming change, from now till 31 December 2015, you have the option to not top up to your Medisave Account when you withdraw your CPF monies.

You will have a Medisave Minimum Sum shortfall if your Medisave Account balance falls below the Medisave Minimum Sum of $43,500. You will be required to top up the shortfall with a portion of your Special and/or Ordinary Account savings only after you have met the Full Retirement Sum.

A charge is created when a member uses his CPF savings to finance the purchase of his property and pay his housing loan.

CPF members can withdraw their Retirement Account savings14 above the Basic Retirement Sum in cash if they pledge their property. Pledging a property means that when a person sells his property, the amount pledged will go back to his Retirement Account. It does not affect one’s ownership of the property.

Annual Value (AV) The AV of your property refers to how much rent we estimate you could receive each year if you rented it out.

To work out the value of your property, we will use the AV of the property stated as your NRIC address as at 31 December before the year we issue your CPF LIFE plan, as provided by IRAS.

For example, if we issue your CPF LIFE plan in 2015, we will use the 2014 AV of the property stated in your NRIC as of 31 December 2014.

Term Definition

14Excludes top-up monies, interest earned and any government grants received

Other Terms

23

Notes

24

Notes

www.cpf.gov.sg

Information is accurate as of 24 April 2015