Not sure if this has been posted, this news dated 2 mths ago in March 2010. Basically we are all so screwed...
Read the 5 main points
Upon reaching 55, if your CPF Special Account (SA) plus property pledge, is insufficient to meet your CPF Minimum Sum (MS), which is currently $117,000, your CPF Ordinary Account (OA) balance will be transferred to your CPF Retirement Account (RA) to make-up for the MS shortfall.
What this means is that you may no longer be able to use your OA balance to pay for your home mortgage.
So, if you are affected by this policy, use your entire OA balance to re-pay your mortgage before you turn 55.
If you plan to downgrade to a smaller flat, the sales proceeds (CPF utilised and accrued interest) of your flat will also be transferred to your RA, if you have a MS shortfall.
What this means is that after setting aside the MS, you may have less available from your flat sale proceeds to pay for your smaller downgrade flat.
So, if you want to downgrade, do it before 55.
Upon reaching 55, your OA and SA that is transferred to your RA to meet the MS, can no longer be invested.
So, if you want to invest your OA and SA, do it before 55. (note: first $20,000 of OA and $40,000 of SA cannot be invested.)
For those age 55 and younger from 2013 onwards, CPF Life will be compulsory.
So, if you plan to migrate, give up your Singapore citizenship, and want to withdraw your entire CPF as a lump sum, you should try to do so before 55.
Otherwise, only the surrender value of your CPF Life (depending on which of the 4 plans you choose) may be given to you. If you plan to migrate, choose the CPF Life Basic plan as it gives the lowest monthly annuity payout with the highest residue value.
When the OA is transferred to the RA to meet the MS at age 55, the OA also can no longer be used to pay for one’s own or children’s tertiary education fees.