As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

Currently; it about 54% to destination!

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Thursday, 22 December 2016

Turning 55 - and enjoying financial freedom (5)

Read? Turning 55 - and enjoying financial freedom (4)

Uncle8888 is so eng and went to Bishan CPF branch again and then next to Bishan NLB to read newspapers. 

This time he wanted to find out more for his CPF withdrawal strategies for 2017/2018 onward to build sustainable retirement income for life - His Three Taps solution model.

CPF OA forms bulk of his Tap 1!

This time, he is an expert visitor to CPF branch. He passed his Q ticket and IC together to counter staff to save one step in their SOP.

IMPORTANT to note if you are going to withdraw your CPF money for the FIRST time after your retirement.

betta man21 December 2016 at 08:45:00 GMT+8

Regarding withdrawal of CPF after 55, here is what CPF board wrote to me in black and white:

CPF Withdrawal

After setting aside the FRS in your RA, you can withdraw the remaining CPF balances in your OA,SA. When you withdraw your CPF savings, the Board processes all withdrawals of members who are 55 and above, using the deduction sequence as follows:

1) the interest earned in the Special Account (SA) then Ordinary Account (OA) from the beginning of the year up to the month before the withdrawal, followed by 

2) the contribution/refunds credited to the SA then OA in the same month of the withdrawal, and lastly, 

3) Monies in the SA then monies in the OA.

CPF : What can I do for you?

CW : I want to confirm my understanding that I can withdraw all interests from CPF SA and OA.

CPF : You can withdraw interests from SA, OA and MA too.

CW: Pls help to check how much interests I can draw out without touching my SA and OA.

CPF: Wah! You have lots of interests to draw out. It is $XX,XXX. Do you want to draw out now?

CW: :-)

CW: No. Not now. I will withdraw next year on January.

CPF: No. You can't withdraw your interests on January. Your interests credited on January will become your principal. You have no more interests to withdraw. You have to be careful as you will be withdrawing your principal in CPF SA first and then principal in CPF OA. CPF SA is 4% interests. Be careful! You better withdraw now in December. Your interests for November has been credited! Do you want to withdraw now?

CW: No. I will withdraw next year in December.

CPF : You no need the money now?

CW: No need!

Hmmm  ... may be CPF counter staff is thinking ... Rich CPF Uncle doesn't need his CPF money now. :-)

For retirees thinking of using their CPF to build fixed income annuity; the best time to withdraw all these interests from SA, OA and MA is at first two weeks in every December after 5th December when interests for November has been credited. You will have 11 months of interests to withdraw. That is max and leaving interests for Dec to become principal in the following year. We will have perceptual fixed income annuities for life with our principal intact for beneficiaries. Good? Right?


  1. you can withdraw the interest every month from feb to dec, from aged 55 and above. u need to write in every month.

    1. We can treat it as writing our own monthly pay check. :-)

    2. Can we have standing (blanket order say for 1 yr) order to CPF instead of writing to CPF every month?

      lol ...

  2. thanks for helping to confirm that OA+SA+MA interest can be withdrawn /thumbsup

  3. i just talked (last weekday) to CPF by phone about what interest can be withdrawn and she said Interest form MA can not be withdrawn.

    Only OA AND SA can.

    Now i am not so sure leh.

    She said if the interest in MA+Principle in MA exceeded the "max limit", the excess will be transfered to OA month to month.

    No interest from MA can be withdrawn in this way.

    1. Think she is refering to those on max MA. Any interest earned for that month overflow to OA. No more interests in MA; how to withdraw?

      Our CPF system is complex system with complicated rules! Good for Bigscribe. LOL!

    2. Same rule as trying to withdraw interests on month of January as interests for previous year has been compounded into Principal. No outstanding interests

    3. Arh...... for this i got a different answer too.

      Temp: "Why can't i withdraw interest for the whole year, Jan to DEC?

      CPF: (after taking sometime consulting with "someone")

      "Yes you can from the 2nd week of Jan. is the best because by then DEC's interest is in to."

      So i think i agree with Bully The Bear email CPF for a solid committed answer is best.

    4. CW: Pls help to check how much interests I can draw out without touching my SA and OA.

      CPF: Wah! You have lots of interests to draw out. It is $XX,XXX. Do you want to draw out now?

      That day when I was there at Bishan CPF branch; the staff has already know how much I could withdraw and she was about to pass me the form to fill up when I told her no need. LOL!

      Next year in Jan, I will do down to CPF Branch and tell them I want to withdraw my interests ans see what response.

      That why I said : Some CPF Matters : Understanding It Better By Actually Going Through The ProcessTo Do It

    5. Ha! Ha!

      SMOL said must verify one.

      i suppose he means to hear from the horses' mouth is the best.

      And do it on the spot should be final.

      Hokkien says, "Boh Beh Chow!"

    6. Once money into our bank account. That is right process and understanding of this complex CPF scheme. Then organize kopi session on How to optimize your CPF Withdrawal

    7. "She said if the interest in MA+Principle in MA exceeded the "max limit", the excess will be transfered to OA month to month."

      This is news to me. i never knew this ... (if it is accurate)

      "Yes you can from the 2nd week of Jan. is the best because by then DEC's interest is in to."

      I think the CPF officer is advising withdrawing the interest AFTER it is credited into your principal. That means the condition "without touching my SA and OA" is not met

  4. This comment has been removed by the author.

    1. Monthly interests are computed at 5th of every month. This monthly interests we can't see it on online CPF statement. If you are above 55; you can go down to Branch to check. Senior citizen got priority queue so you no need to wait too long.

    2. I think I may have to go down to test our understanding again. LOL!

  5. "This monthly interests we can't see it on online CPF statement."


    Is it because i read somewhere that though monthly interest is calculated on the lowest balance of the month, but it is only paid in at the end of the year ? (no interest on your monthly's interest right?) Yes or No?

    So 2.5%*Jan's lowest balance to be paid only in at the end of the year. Repeat calculation with FEB's Mar's until DEC.

    Now add all the 12 monthly interest for a year.

    For a retiree it is like interest paid like a FD from bank because no more income.

    Pls confirm with CPF !


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