An Ex-CPF Employee Exposes the 3 Biggest Complaints Singaporeans Have About Their CPF Accounts

Jeff Cuellar



Few questions divide Singaporeans as much as this one – What is CPF used for? As you process your own answer to that question, chances are the words “retirement,” “housing,” healthcare” and maybe “Ponzi scheme” are running through your head.

But no matter what function(s) you think CPF serves, everyone faces the reality of having to pay their “dues” to keep the system going. That means contributing 20% of your salary (up to age 50) every month to a scheme that only benefits those who vastly surpass the current minimum balance of $148K.

Sadly, more Singaporeans who have money in CPF and need it can’t even touch it.

An ex-CPF employee named “Brian” (who wishes to remain anonymous for very obvious reasons), who deals with the valid concerns of Singaporeans daily, was kind enough to help us shed some light on what Singaporeans complain about most when it comes to their CPF accounts. Here are Singaporeans’ 3 biggest complaints about their CPF accounts:

1. It’s Nearly Impossible to Access Your Retirement Account (RA) Funds

The biggest limiting factor people have when it comes to their CPF accounts is the fact that their Retirement Account (RA) funds are about as inaccessible as Area 51 until you reach the drawdown, which varies from 62 to 65 depending on your year of birth. The problem with having an inaccessible RA account is that it leaves Singaporeans still servicing their home loan with their CPF in a helpless situation because:

  1. Retrenchment: No income means they can no longer make contributions into their Ordinary Accounts (OA).
  2. Contribution level: The contribution level decreases significantly after 55, making it harder to meet the minimum cash component in RA.

It’s sad, there were several occasions when we had to direct Singaporeans to HDB or the banks because our hands were tied – we couldn’t release their funds to them even though they may have thousands in their RA to help with their home loan repayments,” says Brian. Ironically, the only exceptions for using your RA funds involve purchasing property under the following conditions:

  1. You can only use the excess in your RA AFTER setting aside the minimum cash component, which is currently $148K.
  2. Of that $148K, you’ll need to maintain $74K in your RA, with the excess (excluding annual interests) being available for the purchase of property.

*Note on property purchases: According to Brian, there is a way for you to use your OA towards purchasing property. If you have booked a BTO flat before turning 55, you can write in to CPF to have funds from your OA reserved for the purchase. In fact, Singaporeans have been successful in having these requests approved.

2. You Can’t Withdraw As Much from CPF at Age 55

Just a few years ago, if you turned 55 before 2009, you could have withdrawn 50% of your combined OA and Special Account (SA) funds! So if you had today’s current minimum sum of $148K, you could withdraw $74,000. Then in 2009, the limit dropped to 40%. And then… well, I think you know where this is going right?

Let’s just say that CPF reduced the withdrawal limit faster than an Indonesian palm plantation owner reduces forestland. Today, if you don’t have the full minimum sum of $148K – you ONLY get $5K. The rest gets sent over to your RA, which you probably won’t see for another 7 to 10 years. The biggest complaints Brian received about the inability of some Singaporeans to get more than $5K were:

  • Couldn’t pay off debts: Singaporeans who were financially troubled and had debts to pay off could not pay them even though they had thousands of dollars in their RA.
  • In danger of home repossession: Singaporeans who were having trouble keeping up with their home loan repayments due to retrenchment or financial difficulty couldn’t access the money they needed to maintain their repayments even though they might have had $50K in their RA.
  • Couldn’t go on pilgrimage: Many elderly Muslims who were waiting till age 55 to use their funds to go on pilgrimage (Hajj) were left disappointed when the amount they could withdraw wasn’t enough.

*Note on pledging your property: Brian points out that if you’ve used your CPF to purchase a home, you can opt to pledge or increase the pledge of your property. So if you just turn 55 this year and you’ve got the full minimum sum of $148K, you can pledge your property up to $74K, freeing up the “excess” $74K in your CPF for withdrawal.

3. There Are Times When You CAN’T Use CPF for Housing

When you buy a home, there’s a limit to how much CPF you can use to purchase a home, called the Valuation Limit (VL). The VL is determined by the lower value of either the market price or the valuation price of a home, and you cannot withdraw more than 120% of the VL, which is called the Withdrawal Limit (WL). So what happens when you reach the VL of your home?

If you’re below 55, you’ll need to maintain either half the prevailing minimum sum cash component (Your OA+SA+SA investments) or the minimum sum cash component in your RA if you’re over 55 (and you can only use your RA excess to service your home loan). If you don’t follow these conditions, you CAN’T use your CPF to service your home loan.

Not knowing when you can’t use your CPF to service your home loan is a huge reason why people contact CPF, especially when Singaporeans:

  • Reach their VL before age 55 and haven’t maintained half of their prevailing minimum sum cash component (OA+SA+SA investments).
  • Reach their VL after age 55 and haven’t maintained their minimum sum cash component in their RA (only RA excess can be used!).
  • Surpass their WL.


CPF Staff Are There to Help, But They Don’t Make Policy

“We understand that CPF needs to be more flexible in allowing Singaporeans to use their funds. What’s the point of having thousands of ‘untouchable’ dollars set aside for retirement when Singaporeans are dealing with financial difficulty now? But we do our best to help people out as much as possible,” says Brian.Brian also stated that the complaints above made up about 70% of their total communications.

That’s A LOT of daily gripes to deal with. Most Singaporeans have their reasons to complain about CPF. If you’ve read Dear CPF: Give Me Back My Money, you know just a few of the many grievances people have with the scheme. But before you call up or email CPF to give them a piece of your mind, please remember that the hard working employees don’t set policy – they’re there to help you as best as they can.


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Jeff Cuellar

I'm known by many titles: copywriter, published author, literary connoisseur, ex- U.S. Army intelligence analyst, and Champion of Capua.

Comments (13)

  1. Meant for retirement? So you need the govt to hold your hand to plan your retirement savings plan. Do you need help tying your shoelaces too?

    1. This is because many irresponsible old men got the CPF money and spent in Batam while the old women spent it on Cruise to no way casino. So when they need money for their livelihood, the govt will have to give help which means tax payers’ money will have to used on these irresponsible people. Look at europe, so many countries went bankrupt because of money spent on irresponsible people.

  2. Pls sign a form and said you do not need any govt help in the future, not even a single cent.

    1. That’s what taxes are for. Not CPF. CPF is a financial planning scheme, not a revenue source for the government. Get your facts right.

  3. Pls sign a form to indicate that you will not use a single cent from the govt, that is tax payer money.

  4. Ask your sis to sign a declaration that will not use a single cent from the govt which means tax payer money.

  5. One need to be financial prudent and do not overstretch our financial obligation.

  6. When they run out of money, they will ask their govt for help and that is why so many european countries went bankrupt.

  7. Jeff, great article. It really highlights the need to be prudent with your home purchase and plan carefully. Even with the 120% VL in place, your loan should be able to cover the cost of your home if you had paid enough for the first deposit.

    Unfortunately, if you ever find yourself jobless and unable to service your housing loan pass age 55, you cant use any of the money in your RA. CPF board is inflexible in that way. Then again, it should remind us to be more careful with our housing purchase. Perhaps we should choose loan repayment plans that end before we reach age 55.

  8. The fact that many people are asking to withdraw their CPF when they are in their 30s or 40s emphasizes the very need for it to remain untouchable – these people will likely spend it on current needs and commitments and once that’s done, what will they retire on? While we’re young and able, we can still come up with other means of making money to support our current needs.

    Investments can still be made using funds stored in CPF so there is still the flexibility for you to grow the ‘locked up’ portion of your money and I believe restrictions in place are to safeguard the population.

    While some may find the restrictions a pain, perhaps we can see it as a safeguard to protect us from ourselves – after all, you can’t place all your eggs in a basket and commit ALL your money into a business venture i.e. high risk; investments using CPF can make up the low-risk portion of your investment portfolio, allowing you to diversify your risk.

  9. I am a 60 year old Singaporean who is not working for the Singapore government and totally do not have conflict of interests in my opinion; and agree with you.

    It is very tough to have to try to explain to citizens here.

    Many have not gone through hard and tough times and majority are descendants of one and two child families whose parents bought their properties when they were a miniscule fraction of today’s prices. Having sold their private and/or two allocations of public housing at high profits – many have been emboldened in their expenditure – spending gross obscene sums of money into the future expecting that it will perpetually be rosy!

    They get themselves into debts. Others, upon collecting their “windfall” at 55; unable to cope with sudden riches, fall prey to scams or indulge in lives of sin.

    Without such strict policies, they will bankrupt themselves and blame the state for their woes in about a decade or so and whine at others for not looking after the elderly….This is our REALITY which citizens here have to face!

  10. Why did the government allow funds in the CPF, a retirement fund, to be used for housing in the first place? The American SS don’t allow this and yet we do not see 80 or more percentage of the US population living in rental homes, why?

  11. Give us, oldies, back our money. Or we will vote for the Workers Party come 2016.

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