There are more than half a million people living in Singapore with a Permanent Residence status. They have been living and working in Singapore for years, many of them have well integrated into society. They also contribute to the same pension fund CPF, as the residents. For the PRs, CPF contribution gradually goes up to the same rate as residents from the third year onwards. As the first and second-year PR, you pay a lower rate in order to adjust to the lower take-home pay.

Grow Your CPF While Working In Singapore

Below the age of 55, employees pay 17% of their salary into CPF and the employer pays 20% of the salary to the employee’s CPF account. The total percentage is 37%. Over the course of 5,10 or 20 years, if you move your money from Ordinary Account to Special Account, you can earn at a 4% interest rate and grow your CPF money to a substantial amount.

For example, Tim is a Singapore PR,35 years old. His monthly salary is $6000. His monthly CPF contribution is $6000 X 37% = $2220. The yearly contribution is $26640. Among these, $15,120 in Ordinary Account, $11,520 in Medisave and Special Account.

In 10 years, Tim will have $307,705.49 in CPF, he and his employer only put in $266,400:

• Ordinary Account: $169,395.13

• Special Account + Medisave: $138,310.36

Tim can grow his CPF to even a large amount if he moves all money from Ordinary Account which has a 2.5% interest rate, to Special Account, which has a 4% interest rate. The Medisave account also has a 4% interest rate. In 10 years he will have $319,842.69.

So if you are like Tim, working in Singapore as a PR, you can benefit from the great pension system and grow your CPF money to a large sum, especially when you move your money from an ordinary account to a special account and you do not plan to use the nary account to purchase a home.

Even if you decide to move to another country you can still take out and bring the money with you. This is the benefit of working and contributing to CPF in Singapore.

After you accumulated over the years, when you move out of Singapore, the withdrawal process is quite simple.

Download the spreadsheet to calculate your own pension amount here.

Withdraw CPF When Leaving Singapore (and West Malaysia)

There is a condition, that you are leaving Singapore as well as West Malaysia. So only leaving Singapore for West Malaysia does not count. You can withdraw the CPF amount if you leave Singapore and West Malaysia permanently.

If you are in Singapore, you can apply in person:

You need to fill the Application to Withdraw CPF on Ground of Leaving Singapore and West Malaysia Permanently” (Form CPF-LM) for adults and “Application to Withdraw CPF on Ground of Leaving Singapore and West Malaysia Permanently” (Form CPF-LM) (Child) and bring the original supporting documents to CPF Service Center to prove that you have left or will leave Singapore permanently.

If you already left Singapore, you need to apply by post:

1. Have the completed “Application to Withdraw CPF on Ground of Leaving Singapore and West Malaysia Permanently” (Form CPF-LM) (PDF, 1.5MB) witnessed by an official of a Singapore Overseas Mission with his official seal/stamp duly affixed; and

2. Have photocopies of the relevant supporting documents (as stated on the application form) certified by an official of a Singapore Overseas Mission with his official seal/stamp duly affixed.

You will receive the payments either by GIRO to your Singapore bank account or telegraphic transfer to your bank overseas. You can choose which method to receive money. According to my own research online, the process is pretty quick, quite in line with the government’s efficiency.

Download the spreadsheet to calculate your own pension amount here.

Returning To Singapore Again

If you are an ex-citizen or ex-PR returning back to Singapore, after leaving and withdrawing all your CPF money, to obtain permanent residency or citizenship, you have to put back all amount to CPF including the interests earned in the past years. If you return as a foreigner, this does not apply of course.

Leaving After 55 Years Old

As you may have read in the article <Simple Guide on How to Withdraw Money From CPF at 55>, you will need to set aside some amount to a retirement account when you reach the age of 55. From 65 years old onwards, you can receive an annuity from the CPF LIFE plan.

If you are put on the CPF LIFE plan but have not yet been issued CPF LIFE Policy. Then your refund is in full, excluding some insurances. If you have already been issued a CPF LIFE Policy, and you receive monthly payouts, you can choose to terminate your CPF LIFE and any leftover premiums will be refunded to you, or you can choose to continue receiving monthly payouts from the retirement account. This choice is given to you when you fill the withdrawal form. I find having this option is fantastic. As the Singapore government is very reliable and having a retirement annuity with CPF is a source of monthly income in old ages while not need to worry about where to invest the money and bearing the risks.

Leaving After 55 Years Old

As you may have read in the article <Simple Guide on How to Withdraw Money From CPF at 55>, you will need to set aside some amount to a retirement account when you reach the age of 55. From 65 years old onwards, you can receive an annuity from the CPF LIFE plan.

If you are put on the CPF LIFE plan but have not yet been issued CPF LIFE Policy. Then your refund is in full, excluding some insurances. If you have already been issued a CPF LIFE Policy, and you receive monthly payouts, you can choose to terminate your CPF LIFE and any leftover premiums will be refunded to you, or you can choose to continue receiving monthly payouts from the retirement account. This choice is given to you when you fill the withdrawal form. I find having this option is fantastic. As the Singapore government is very reliable and having a retirement annuity with CPF is a source of monthly income in old ages while not need to worry about where to invest the money and bearing the risks.

What To Do With Your CPF Being A PR

If you know that sometime in the future you will return to your home country to retire or another country, you can focus on maximizing your CPF and grow it over the years with the high-interest rate from Special Account and Medisave Account. If you want to learn how to optimize CPF and grow to a million Singapore dollars. You might want to read this article: <How To Optimize And Have SGD 1 Million In CPF>.

All information provided in this article is based on the CPF Board resources. The author is not liable for any outdated information. You need to be responsible for your own money and your own action.

Download the spreadsheet to calculate your own pension amount here.