What you said used to be true but the CPF rules was surreptitiously changed a few years ago.
If a CPF member has more than $148K in his CPF, he is NOT allowed to use the property to pledge.
If he has less than $148K in his CPF, he is FORCED to pledge his property to make up the difference.
In this case, chootchiew can only withdraw $2000 when he turns 55.
I think you are wrong. read this >
If you have set aside the CPF Minimum Sum and Medisave Required Amount, you can apply to the Board to withdraw your CPFIS-OA and CPFIS-SA investments as well as the cash balance in your Investment Account. Your CPF Investment Account will be closed once you withdraw your investments.
To apply for the withdrawal, click
here or submit the completed
Form INV-Transfer to us.
The procedure to withdraw the investments is as follows:
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CPF Investment Scheme – Ordinary Account
(CPFIS-OA)
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CPF Investment Scheme – Special Account
(CPFIS-SA)
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[TD]The Board will inform your agent bank to close your CPF Investment Account. You may approach the bank for the release[SUP]#[/SUP] of your investments and cash after the Board has notified you. Your investments will be transferred to your own name and you may liquidate them as you wish and have the proceeds paid to you directly.[/TD]
[TD]The Board will inform your product providers to transfer your investments to your own name and you may liquidate them as you wish and have the proceeds paid to you directly.[/TD]
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[SUP]
#[/SUP]Central Depository (Pte) Ltd (“CDP”) imposes a transfer fee of $10.70 (inclusive of GST) for every share counter transferred from your CPF Investment Account to your CDP Account.
Once withdrawn, your CPFIS investments and cash balance in your Investment Account will no longer be protected from any claims by your creditors and/or the Official Assignee.
However, if you are unable to set aside the CPF Minimum Sum and Medisave Required Amount, your investments will not be transferred to you. Upon liquidation of your investments, the sale proceeds will be credited to your CPF Investment Account for CPFIS-OA or Special Account for CPFIS-SA.
To know more about the basics of investments, visit our
Business Centre in Retirement Ready @ my cpf.
Other related considerations:
| 1. | What if I have used my CPF savings to finance my children’s tertiary education under the Education Scheme?
|
| | You may apply to waive the repayment when you reach 55 and have set aside the CPF Minimum Sum and Medisave Required Amount. The application should be made only after the student has graduated or left the approved institution.
The waiver will include the total CPF withdrawn and the interest that you would have earned had you not used your CPF for education. It does not include the amount that has already been repaid by the student and the amount used for his current course of study (if any).
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| | |
| 2. | Discounted ST shares |
| You can apply to the Board to withdraw your discounted ST shares as long as you have set aside the CPF Minimum Sum and Medisave Required Amount.
To apply for the withdrawal, click here or submit the completed Form INV-Transfer to us.
Once withdrawn, your discounted ST shares will no longer be protected from any claims by your creditor and/or the Official Assignee.
However, if you are unable to set aside the CPF Minimum Sum and Medisave Required Amount, the discounted ST shares will not be transferred to you. Upon liquidation of the discounted ST shares, the proceeds will be credited to your CPF Ordinary Account.
http://mycpf.cpf.gov.sg/CPF/my-cpf/reach-55/Reach55-6.htm?popup=yes
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