There are a few key milestones that all CPF members go through in their financial planning journey around CPF. The first milestone would be using CPF for housing, and the next milestone would be retirement. While housing decisions are at top of mind for most because it occurs earlier, retirement decisions deserve just as much attention and consideration, if not more. There are major decision points at retirement, with opportunities to better utilise favourable CPF policies to manage your wealth better. This would require an understanding of what happens during CPF Retirement Account (CPF RA) formation, how CPF contribution changes and withdrawals after 55.

Formation of CPF RA at 55

How CPF RA is normally formed

When you reach 55 years old, your CPF Special Account (SA) and/or Ordinary Account (OA) monies will be transferred to your newly formed CPF RA. If you have sufficient balance in your CPF SA and OA, the CPF Full Retirement Sum (FRS) will be transferred...