CPF WITHDRAWAL BEFORE RETIREMENT AGE

CPF WITHDRAWAL BEFORE RETIREMENT AGE: 3.

Mr Viswa Sadasivan asked the Minister for Manpower whether the CPF Act provides for extenuating circumstances, other than for housing and investment, whereby a member is allowed to draw his CPF monies before his official retirement age.

Mr Gan Kim Yong: Sir, upon reaching age 55, and before he reaches his draw-down age currently set at 62, a member is already allowed to withdraw his CPF savings in the Ordinary Account and

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Special Account after setting aside both the Minimum Sum and the Medisave required amount. Medisave Account savings above the Medisave Minimum Sum can also be withdrawn upon turning 55.

The CPF Act also provides for the early withdrawal of CPF savings in four specific situations. Firstly, for members who are terminally ill; secondly, for members with medical conditions rendering them permanently unfit for any employment; thirdly, for members with severely impaired life expectancies, and lastly, for members lacking mental capacity. The application for withdrawal under each of these situations would have to be certified by CPF Board’s panel of doctors and approved by the Board.

Members who are certified by the doctors as terminally ill will be allowed to withdraw all their Ordinary and Special Account savings without setting aside the Minimum Sum. As such members are likely to require their Medisave savings for medical expenses, they are required to retain their savings in the Medisave Account up to the Medisave Minimum Sum, but any excess may be withdrawn.

In the other cases, the member concerned will be allowed to make a lump-sum withdrawal from his Ordinary and Special Account savings after setting aside a reduced Minimum Sum and topping up his Medisave Account, up to the Medisave Minimum Sum. Medisave savings above the Medisave Minimum Sum can also be withdrawn as a lump sum.