7 Important Things Of CPF Payout

Posted by Singapore retirement system on February 23rd, 2019

1. New Changes In The Bill Try To Up The Flexibility Quotient

One of the biggest changes that Singaporeans could be slightly happier about lies in the fact that lump sum withdrawals aren't entirely kicked out of the equation, although as always, there's a catch.

Before you can withdraw that lump sum, you must first ensure that you've set aside your Full Retirement Sum or Basic Retirement Sum with adequate property charge/pledge in your Retirement Account.

2. Less Hassle To Top-Up Your Family's Medisave Accounts

A CPF member who has already set aside his full Retirement Sum can top up certain family members' Medisave Accounts directly using the monies in his own Ordinary and Special Accounts. These family members must be 55-years-old and above, and in-laws are included as well.

3. There Are 3 Tiers Of Retirement Sums You Can Choose To Put Aside

Pick either the Basic, Full, or Enhanced Retirement Sum to set aside in your Retirement Account. What's the difference, you wonder? The Enhanced Retirement Sum is 3 times that of the Basic Retirement Sum, whereas the Full Retirement Sum is 2 times that of the Basic Retirement Sum.

The more you save as reserve in your Retirement Account, the more monthly CPF Payout you'll receive in the future when you're older and greyer.

4. CPF Nomination Is Not Compulsory

You can choose not to nominate if you're okay with your CPF savings being handed out to your family upon your death, in accordance to intestacy laws. But if you want to specifically determine who will receive your CPF Payout savings, and in what proportion will he or she receive, you'll have to submit a CPF nomination.

5. You Can Decide How Your Nominees Receive Your CPF Savings Upon Your Death

Pick from either cash lump sum (under Cash Nomination) or have the monies credited into their CPF accounts (under the Enhanced Nomination Scheme). Note that the latter is in place to safeguard your nominees healthcare and retirement needs, so you cannot choose to have your CPF savings credited into their Ordinary Account.

6. Your CPF Savings Are Protected From Creditor Claims

For starters, your CPF savings are not covered under your will, whether or not you already have created one. These CPF savings don't form your estate and they are protected from credit claims on any outstanding debts which you might have when you pass on.

7. There's This Thing Called The Dependant Protection Scheme

Young people like myself who have just started contributing to CPF Payout for maybe a year or so probably don't know the existence of this opt-out term insurance scheme.