Should you withdraw CPF cash at age 55?

Weigh trade-off between cashing out money and leaving funds to grow for retirement needs

A CPF Board study found that people who made withdrawals mostly deposited the funds in a bank or used them to pay for near-term expenditure needs or big-ticket items.
A CPF Board study found that people who made withdrawals mostly deposited the funds in a bank or used them to pay for near-term expenditure needs or big-ticket items. ST PHOTO: CHONG JUN LIANG
SingCapital's Mr Alfred Chia says it may be better to leave funds in CPF accounts to enjoy the attractive interest rates.
SingCapital's Mr Alfred Chia says it may be better to leave funds in CPF accounts to enjoy the attractive interest rates.
DBS' Mr Brandon Lam advises customers to establish their retirement needs before allocating their funds to optimise returns.
DBS' Mr Brandon Lam advises customers to establish their retirement needs before allocating their funds to optimise returns.
UOB's Ms Chung Shaw Bee says multi-asset funds that have a focus on generating regular payouts are an option to generate income.
UOB's Ms Chung Shaw Bee says multi-asset funds that have a focus on generating regular payouts are an option to generate income.
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Stay in or cash out? That is the question for many people as they near 55 and the enticing pot of CPF money awaits. Some Singaporeans resist the temptation to grab their Central Provident Fund (CPF) savings, and leave the funds untouched so they can keep capitalising on the attractive interest rates before they eventually retire.

But 51 per cent of those who withdrew their cash on reaching 55 parked the funds in savings accounts at banks and finance firms, according to a recent survey.

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A version of this article appeared in the print edition of The Sunday Times on September 23, 2018, with the headline Should you withdraw CPF cash at age 55?. Subscribe