CPF Scheme uniquely shrewd policies awaiting the 55ers

I have read several comments concerning money left in our CPF accounts a.k.a. Ordinary Account, Special Account and Medisave Account. Other than the Medisave account, member upon reaching 55 years may request the Board to release the money in the Ordinary and Special accounts.

Here’s how:

By Law, effective 01-July-2012, the Minimum Sum was revised upward to S$139,000 – no surprises!

Upon member reaching 55 years, the Board shall send a letter to member advising the balances in the respective accounts, a.k.a. Ordinary Account, Special Account and Medisave Account together with a “Application for Withdrawal for Members 55 and Above” form. As if it’s not complicated enough with the three accounts, the Board will create another account call the Retirement Account. The S$139,000 will have to come from the Ordinary and Special Accounts to be set aside in the Retirement Account.

Now the catch is here. What the Board will not tell you in the letter is member may pledge his/her property to make up for the S$139,000. Only excesses above this amount are available for release. See, they will stand that low just to get their hands on the hard-earned money (up to S$139,000) from the ill-informed or ignorant member.

To pledge your property, member is required to complete the “Application to Pledge Property under Minimum Sum Scheme” form. This form needs to be sign by the co-owner (a.k.a. your spouse) and submit together with the “Application for Withdrawal for Members 55 and above” form to the Board. The “Application to Pledge Property under Minimum Sum Scheme” form is obtainable online or via any of the CPF offices.

Here is another catch. If the ill-informed or ignorant member did nothing after reaching 55, the monies in the Retirement Account would be released in monthly payouts ONLY from age 65 onwards. It is but another shrewd way for the government to tap cash flow from for investment losses.

So readers, be discerning and decide for yourself with what you want to do with your CPF monies and not let the government do what is “good” for you.

As for me, nothing beats having the hard cold cash in my bank account. You don’t want to end up being the fool when policies are changed unfavorably in the future, something this government has proven to be very capable of time and again.

Autor:Contributions

Ref:tremeritu