Frequently Asked Questions About CPF

Note: This post below has been updated on 20 May 2025.

Unanswered Questions during the CPF Webinar (08 May 2025)

1. Is it unwise to do a housing refund?

The reason why people might do housing refund is because they have already met the Full Retirement Sum (FRS) and have spare cash in bank accounts earning low interest. For this group of people, they can consider doing a Voluntary Housing Refund to their CPF OA so that these funds can earn 2.5% interest. These funds can also be withdrawn any time as they have already met FRS.

2. If I am post-55 years old and already retired, can I still use cash to do a voluntary CPF contribution? Would there be any tax relief in doing so?

Yes you can still do CPF voluntary contribution into your 3 CPF accounts even after post-55 and retired. The monies will be allocated into the OA, RA and MA accordingly. If you have already met the FRS in your RA, the contributions will flow into your OA instead. Tax relief for VC is only available for Self-Employed Persons (SEPs).

3. When does my premium start getting deducted for CPF Life?

Your premium will be deducted at point of starting your CPF LIFE payouts which can happen anytime from age 65 onwards.

4. How much is needed in my RA to achieve a $3,000 per month payout from CPF Life at age 65?

For the most accurate estimation, we will suggest that you use the Monthly Payout Estimator on the CPF website. You’d be able to find out the payouts based on different CPF LIFE plans for different retirement sums set aside in your RA.

5. If one achieves FRS ar 55 years of age, can he top up the RA account between 55-65 years old? Example: if I top up my RA to $850K at the age of 65 years old, I can get approx $4000/month from CPF Life?

Yes, you can continue topping up to your RA between 55 to 65 years old, up to the prevailing Enhanced Retirement Sum every year. To hit $850k, you’d need to top up to ERS at age of 55 and continue to top up every year to the new ERS to fully benefit from the compound interest earned on your RA monies.

6. If I am past 55 years old and my RA has reached FRS (fully with cash), can I withdraw the money that I put back into my OA for housing refund?

Yes you can. As long as RA has satisfied the FRS, monies that were refunded to OA via the voluntary housing refund can be withdrawn anytime post-55.

7. Is the annuity premium a one time payment, or is it a recurring payment?

The annuity premium is a one time deduction at the point when you choose to start your CPF LIFE payouts. However if you did not meet the Basic Retirement Sum (with property) condition, any new inflows to your CPF accounts may be deducted as annuity premiums to help you increase your CPF LIFE payouts.

8. If I have already maxed out my RA to ERS, is it possible to top up my RA beyond ERS?

You can still top up your RA to the prevailing ERS every year when it increases. The amount you can top up to does not take into consideration the interest earned on your RA savings.

9. Is it fair to compare CPF and an annuity plan when the you only compared the payout amount and not the principal protection?

When we were comparing CPF LIFE to an annuity plan, we were referring specifically to the monthly payout you will receive from CPF LIFE versus from an annuity in Singapore. However, if having liquidity is an important consideration factor, then the option to surrender your insurance annuity for the cash value might be worth considering.

10. Do you recommend using cash or monies from our OA to pay our home loan?

This really depends, if you are using CPF OA to pay for your home loan and hence have spare cash. What do you do with this spare cash? If it is left in the bank earning interest lower than 2.5% per year, you might then want to consider paying your home loan in Cash instead. This allows you to let your CPF OA funds grow at a higher interest of 2.5%.

11. Is CPF shielding is still possible, if so, how should we strategise?

CPF Shielding is still possible, it’s just that the liquidated investments after 55 years old will go into CPF OA (earning 2.5% interest). If your spare cash is left in bank earning lower than 2.5% interest, then you can consider CPF Shielding to have more funds in CPF OA to earn a higher interest.

12. I was under the impression that the OA is no more, am I right?

There will still be CPF OA after we turn age 55. It is the CPF Special Account (SA) that will be closed after age 55.

13. If we do a property pledge to meet FRS, would we end up with a lower monthly payout from age 65?

Your CPF LIFE payouts will be based on the cash savings that was set aside in your Retirement Account. If you choose to reduce your balances from FRS to BRS using your property, your CPF LIFE payouts will be lower consequently.

14. Would it be better to still VHR or simply ignore that option and pursue other investments?

This really depends on how you are managing your overall wealth portfolio. We know that when you do Voluntary Housing Refund (VHR), it is to have more funds in CPF OA earning 2.5% interest. Because of the liquidity of your CPF OA funds after you’ve hit the Full Retirement Sum (FRS), CPF OA can be a safe place to park your money for short-term goals or emergency funds.

15. Is it possible to do a housing voluntary refund then transfer the money from OA to SA after age 55?

With the new changes to the CPF accounts this year, your SA will be closed post-55 years old. You may still do a voluntary housing refund to your OA provided you have used your CPF OA to pay for your home previously. And if you would like to, you can still transfer the OA to your RA to increase your CPF LIFE payouts.

16. Which option makes more sense: topping up my RA with my OA or buying an annuity, which I have an option of withdrawing, and whilst receiving payouts, the remaining balance still accrues interest that I can benefit directly, instead of with the RA where the interests is pooled and only received after I have outlived my RA.

Generally CPF LIFE is a risk pooling scheme, hence the pooled interest ensures that all members can continue to receive an income for their entire lifespan. Insurance Annuity plans are also risk pooling schemes but managed by private insurers. Hence, the pay-out for such private annuity plans are usually lower due to a smaller pool of individuals and also a cut that goes to the insurers. Non-guaranteed returns earned on private annuities can sometimes be paid out as part of your retirement income-stream. However, most of the time, the total retirement income-stream paid out by private annuites will still end up lower than the monthly pay-out of CPF LIFE.

17. If CPF is a great annuity plan, wouldn’t it be better to top up your RA account than to buy into equities or annuity plan from insurance companies?

This really depends on your overall drawdown approach during retirement. Some people don’t feel comfortable having too much exposure to equities during retirement and prefer a stable monthly income-stream. CPF LIFE is a good option to provide that stable income-stream. Why some people might choose a private annuity plan over CPF LIFE could be that they would like to have the option to surrender their policy to withdraw the cash value during emergencies. However, it is important to note that there will be a surrender charge for most policies if you were to surrender the policy mid-way through the policy term.

18. How can we be a CPF millionaire if we cannot top up our account anymore once we hit FRS?

While the idea of being a CPF millionaire is appealing, we always encourage people to first consider what are their needs during retirement. From there, they can then make decisions on how best to manage their assets to help them achieve their important goals. An option could be to invest in a globally diversified portfolio that can potentially deliver a higher return than CPF SA over the long term.

19. When we hit FRS, does our contribution and employment contributions go to OA?

Once you hit FRS, while you will not be able to use RSTU to top up your SA, your monthly contributions from work (and voluntary contributions) will still be allocated into your SA.

20. I am 77, and do not want to join CPF Life. I currently have the maximum amount in my RA and receive nearly $6K per month, but only up to 82 according to CPF Board. Why can’t I be allowed to receive say only $3K, and be allowed to go beyond age 82, as long as there is money in my RA?

Please check in with CPF Board on your situation. It may be possible to request on a case by case basis to review/adjust your monthly payout amount, to lower your monthly payouts in exchange for a longer payout duration.

21. Is the 4% interest from the RA guaranteed? Will it be reduced over the years especially during an economic downturn?

The interest on your RA is based on a formula which is the yield for 10Y SGS + 1%. Based on this formula, it is possible for RA interest to go below 4% p.a. However since 2008, the government has been providing a floor rate of 4% on your RA savings regardless of economic conditions and this has been extended to 30 June 2025 at this point. Barring any unforeseen circumstances, we do expect that they will continue to maintain the floor rate to support the retirement needs of Singaporeans.

22. My spouse is a homemaker. Should I top up her OA/SA to the maximum amount in one go, or spread it out through the years to maximise the tax incentive?

For most people, they might not have such a large sum of funds available in cash that they can top-up. Hence, by doing the annual top-up, it helps them to reduce their tax while also ensuring their spouse have sufficient for their retirement and medical needs. Whether to top-up at one go or to spread out really depends on your current situation and your objectives. I do suggest that you work with a trusted adviser to assess which option might be more suitable for your suitation.

23. Can money that is used to top up the OA by voluntary contribution be withdrawn after 55 years old if SA has reached FRS

Yes, these savings can be withdrawn post-55 as long as you have met your FRS.

24. Just to clarify, is it right to say that we cannot top up the OA by cash and only the RA after age 55?

Yes that is correct. Through the RSTU, you can directly top up your RA or MA to meet your retirement or healthcare needs. You can only top up to your OA via a voluntary housing refund if you have used your OA to pay for your home loan before, or via voluntary contribution into all 3 CPF accounts. There is no option to do a direct top up into your OA.

25. Is the only way to top up our children’s SA through the CPF Cash Order on the website? Seems like a solid idea… thanks!

Yes that is correct! While it’s great that you’re thinking about building up your children’s savings and enjoy the good interest rate, do ensure that your own needs are taken care of first, and also acknowledging that there could be policy risks.

26. What is the difference in monthly payment of basic vs standard plans of someone who has reached ERS?

Typically the monthly payout for Basic plan is around 10% lower than Standard Plan. For someone who turns 55 years old in 2025 and is able to set aside the ERS, their monthly payout is about $3100 to $3300 under the Standard Plan. So the payout for Basic Plan would be about $2790 to $2970. We will recommend that you use the Monthly Payout Calculator on CPF website to get a more accurate figure.

27. Upon death, at (for example) age 83, what happens to the monies in the Medisave Account? Does the government take it back into the “pool”? Would it not be assigned to the bequest?

The monies in your MA belongs to you. Upon death, it may be used first to pay off any unsettled hospitalisation and treatment expenses before the balances will form part of your bequest and distributed to your loved ones.

28. Could I still transfer money from my OA to my RA even though CPF has already started paying me monthly?

As long as you have yet to hit the prevailing ERS (which increases every year), you can continue to top up your RA even if you have started your payouts. Your CPF LIFE payout will be adjusted accordingly.

29. Will the recording be made available for participants?

Unfortunately, we will not be able to share the Powerpoint or the recording with participants. However, we have a Youtube series which might interest you on Understanding CPF.

Note: This post below has been updated on 13 May 2024.

CPF Interest Rates

1. For the extra 1% interest, how do they divide the interest on $40,000 between SA and RA?

CPF allocates based on the precedence of RA-OA-SA-MA. If you are currently 55 years old and above, and you have RA, that takes precedence. If you under 55 years old, it will go to OA (cap at 20k) then SA, then MA.

2. If SA has met FRS does any additional 1% interest from OA and MA go to OA?

If SA has met FRS, there won’t be extra 1% from MA because the 1st $60k for extra 1% would have already met by OA (cap at $20k) and SA.

3. Can we channel our monies in our OA to RA after 55 to get higher interest?

From 2025 onwards, SA would be closed after 55 years old. You can channel your monies in your OA to RA up to prevailing ERS for higher interest and higher payouts after 65.

4. After 55, the money still left in SA and OA, what would the interest rate be like? Do we still have OA and SA accounts? Or is it collapsed into a single RA account?

From 2025 onwards, SA would be closed after 55 years old. Only OA exists with a legislated floor rate of 2.5%.

CPF Housing Scheme

5. If I use OA to pay for a housing loan, is the accrual interest that I have to pay back based on 3.5% or 2.5%?

It will be based on 2.5%

6. Should I use my spare cash now to pare down my housing loan so I can accumulate my CPF. I’m currently paying off my loan using my OA? What are the advantages of paying back the loans early?

By paying off your loans early, you are using excess cash to hasten the payoff. The advantage is that if your cash is earning a very low return, paying off early saves you the interest on a mortgage that you would have to pay. So mathematically, paying back loans early is better.

However, if you are an investor and the cash can be put into investments earning greater than the mortgage interest on your loans, then mathematically, it may be better not to pay off earlier.

Another advantage of paying off a loan early is to have a peace of mind that you do not have a future cash flow constraint should you lose your job. That peace of mind can be priceless for many people.

7. Is it better to use OA to pay down the mortgage to save interest or to top up SA?

Currently, if you pay down mortgage you save on 2.6% in mortgage interest (HDB Concessionary Loan Rate) and if you choose to top up SA you earn 4% interest or more. What you gain from SA would be more than what you save from pay down mortgage. However, the top up to SA is irreversible and can no longer be used to pay mortgage. You will need to have other sources of money to service the mortgage loan.

8. When you sell your property, what happens to the OA funds that were used? Does it go back into CPF and able to earn the interest?

When you sell your property, the funds in your CPF that goes into servicing the mortgage, together with the accrued interest that could have been earned had they not been used, will go into your CPF to earn OA interest which is currently 2.5% p.a.

CPF Retirement Sum

9. If I have $250,000 in my SA, when I reach 55, will the Full Retirement Sum (FRS) of $205,800 be transferred to RA or I can decide to transfer 250,000 instead. In other words, is it only the basic, full, or enhance sum be selected or it can be any sum above basic?

By default, only the FRS amount (currently $205.8k in 2024) will be pulled from your SA to fulfil the RA Full Retirement Sum. You can transfer the additional amount into your RA when you reach 55 if you have not hit the prevailing Enhance Retirement Sum (ERS) limit.

10. Can you just clarify the $205.8k SA cap on contributions – presumably there is a tax on that as it’s above the $8k/$16k SGD tax-free portion?

Under the Retirement Sum Top Up Scheme (RSTU), CPF members can top up their CPF SA (before age 55) and CPF RA (after age 55) and enjoy tax deduction up to $8,000 for your own top-up and $8,000 if you top up your parent’s or spouse retirement sum. Thus, a CPF member can enjoy up to a maximum of $16,000 in tax deduction under this RSTU scheme.

This reduces your taxable income.

11. Can I choose Basic Retirement Sum even if I have more than 205.8k in the SA?

If you have decided to pledge your property to CPF, you can choose to withdraw the monies above the BRS from your CPF RA.

12. Every year the Enhanced Retirement Sum increases. If I have already met the Enhanced Retirement Sum at age 55, is there any benefit to top up the enhanced RA sum subsequently?

You can top up your RA to the new ERS when it increases every year as the top-up limit does not take into consideration interest earned in your RA. To find out exactly how much you can top up, do log in to your CPF account using your Singpass to find out more.

CPF Top-Up

13. Can you do cash top-up once you hit the FRS?

Once you reach the FRS, you cannot do top up in the Retirement Sum Top Up Scheme. You can still top up your MediSave if you have not hit the Basic Healthcare Sum (BHS) to earn tax relief. You can still do voluntary contribution which will be allocated into your OA, SA, and MA based on your age’s allocation rate. The maximum contribution you can do is $37,740. Unfortunately, voluntary contributions do not attract tax relief unless you are self-employed.

14. Is it better to top up RA to ERS at 55 to get higher CPF life payout or just use BRS and property pledge and invest the difference?

The answer to this question is whether you can get a better return investing versus the return you can earn in CPF. Also, it depends on how reliable you want your stream of income to be. CPF LIFE gives a reliable income stream regardless of markets. At Providend, we believe in balance – using both CPF LIFE and investment in your spending plan to give you the income you need at retirement and also the reliability you will want.

15. I am 53. If I have $500k cash on hand now, is it better to put into CPF or invest with Providend?

This is a question we will need more information on because it will very much depend on your current situation.

Considerations include:

from what age onwards do you need your retirement income?
Is $500k part of your resources?
what is the income requirement for the lifestyle that you want to live?

You will need to look at your wealth in totality and to see that after funding your other financial goals, how much is left over, and overall what is the nature and characteristic of your income plan. We would advise you to speak with a Providend client adviser to understand how you can have a good spending plan before making any decision.

16. Question on voluntary CPF contribution. It was mentioned earlier that one can continue to make voluntary contributions post 55. Is there an age limit beyond which it would be acceptable?

There is no limit.

17. When can I top up RA to meet ERS ceiling?

Topping up RA to prevailing ERS is optional, and you can do it any time from age 55 onwards. Top ups can be done at any time of the year.

18. For the Retirement Top Up Scheme, could you please clarify if the $8,000+$8,000 cash top-up maximum is per month or per year?

The maximum top-up limit is per year.

19. After the age of 55, one can only voluntarily top-up RA, am I right? Upon reaching ERS, can you still voluntarily top up into RA? Or will you only be able to top up voluntarily into SA/OA then?

After age 55, you can only top up into RA. Upon reaching this year ERS, you can still top up to the increased ERS in subsequent years.

20. Is there a topping scheme just for MediSave?

There is a top-up scheme to top up your CPF MediSave, up to a prevailing Basic Healthcare Sum (BHS). You can enjoy tax relief for you MediSave top-up as well.

21. Can I just confirm that after the age of 55, we will no longer be able to voluntarily top up specifically to our SA/OA/MA accounts, assuming that our RA has already reached ERS?

After 55 you can still continue to contribute a maximum of $6000 x 17 month x 0.37 Less CPF Mandatory Contribution into your OA/SA/MA. If you are doing top-ups under Retirement Sum Top Up scheme, you can only top up into your RA up to the prevailing ERS.

22. Can I still top up RA if it has already meet ERS ceiling?

23. Should a young person use the voluntary contribution scheme to save extra cash into OA for a property purchase? Versus saving in cash?

It depends. If you cannot earn as high of interest as 2.5% in short term, less volatile investments, then CPF is an alternative. However, under voluntary contributions (VC), you cannot control which account you top up to. You will be topping up to all three accounts (OA, SA, MA). Thus, you have less money when you need to downpay for your property. This might not be what you desire. Overall, it might make more sense to put money in low-risk instruments such as investment-grade bond funds and higher-yielding savings accounts.

24. Is the top-up scheme the same as what we contribute to SRS annually cap $15,300?

Both the SRS and Retirement Sum Top Up (RSTU) allow you to enjoy tax relief but they are different schemes.

25. Can I put more than $205,800 into the CPF RA?

Yes, you can. After 55, you can top up to the prevailing Enhance Retirement Sum ERS which is currently at $308,700.

26. Can my SA be used to top up the ERS next year when the SA account is closed?

When SA account is closed next year, the balance will be used to top up your RA up to FRS first, and the remaining is transferred to your OA. You can choose to manually transfer from OA to RA all the way to ERS, or do it by cash top up.

CPF Withdrawal

27. Can I withdraw from FRS after 55? Can I use it as an emergency fund?

After 55, an equivalent of the prevailing FRS is transferred to your RA. IF you wish to withdraw this sum, you can only withdraw the amount above the BRS (half the FRS), if you have to pledge your property to CPF.

28. If I put FRS or ERS at 55, can I withdraw partial up to BRS before 65 when I need an emergency fund?

If you have not started taking income from your CPF Life, have to pledge your property to CPF, you can withdraw the amount above BRS. However, if you have to do Retirement Sum Top Up (RSTU) above the BRS amount, the RSTU top-up amount above the BRS amount cannot be withdrawn as well.

29. What is the latest age where a person must totally withdraw from CPF?

There is no latest age.

30. Any benefits from pledging the property (50%) even if I can meet the FRS?

The main benefit is that you can withdraw more cash from your CPF accounts at age 55 as you don’t have to set aside the FRS in the RA. If you have a use for the excess cash, by pledging your property to CPF, you are able to withdraw anything in excess of BRS. The downside is that the annuity income that you will get in the future from CPF Life will be lower.

31. I’m age 55 next year & have no intention of withdrawing the excess. For how long I can leave the cash in the account?

From 2025 onwards, SA would be closed after 55 years old. You can leave the balance in your CPF OA for as long as you want.

CPF LIFE

32. Which CPF LIFE Plan is better between Basic and Standard?

It largely depends on your needs and preference, the basic plan has a lesser fixed payout but leaves more to be bequeathed to your loved ones. Whilst the standard plan has a higher fixed-income payout but leaves less for distribution to your family upon your death.

33. When do I decide which plan I want?

You can decide before the age you want to receive payouts. If you belong to the cohort that has turned or will turn 55 from May 2016 onwards, it will be anytime from age 65 to age 70. If you do not decide on the plan by age 70, the CPF board will decide on the Standard Plan for you.

CPF Nomination

34. What if there is no nomination? Where does the money go?

Your CPF monies will be administered by the Public Trustee Office (PTO) and distributed under the Intestate Succession Act.

CPF Investment Scheme

35. So we can buy ETF with monies in our CPF OA?

There is a list of Approved ETFs that you can invest with your CPF OA. You may want to check them from the CPF Board website.

Other CPF Matters

36. Is it advisable to encourage adults (20+ yrs old) to start out to work to put some savings into CPF?

We have to look at the adult’s situation. A young adult that started out work have fewer commitments and topping up their CPF allows them to enjoy tax relief. However, doing so reduces their cash flow.

While they may not need the money so soon, eventually they may need the cash flow for big-ticket items such as getting married, home renovations. Thus, we need to assess their overall plan to comment further.

Being a trusted adviser to our affluent clients for over two decades, we know that our clients need the reliability and sufficiency of investment returns to meet their needs. You can learn more about our purpose-driven approach towards Wealth Management and Investment Management.

We do not charge a fee at the first consultation meeting. If you would like an honest second opinion on your current estate plan, investment portfolio, financial and/or retirement plan, make an appointment with us today.

GET IN TOUCH