Scams are everywhere and now even your Central Provident Fund (CPF) is a target. The government has therefore announced a new online withdrawal limit for CPF at $2,000 a day for all members 55 years old and above.
The measure started on Nov 30 this year. As of 2023, retirees typically have at least $99,400 in their retirement accounts and there’s a pressing need to protect them as well as beef up security as technology and scams get increasingly invasive.
What Is This Daily Withdrawal Limit And How Does It Impact You
The daily withdrawal limit applies to CPF lump sum withdrawals made under withdrawals for immediate needs for members aged 55 and above.
A default online CPF withdrawal limit of $2,000 a day will be applied to all CPF members aged 55 and above.
CPF members can withdraw some of their savings when they reach 55 years old. They can also receive monthly payouts under the CPF Life Scheme when they reach the eligible age, which is currently 65 years old.
Can You Change The Online Daily Default Limit Of $2,000
Members who wish to change the daily default limit can go online to adjust it (from S$0 to S$200,000), at any time under Account settings via Singpass authentication. However, you can only adjust the daily withdrawal limit with Singpass face verification.
There will be a 12-hour cooling period to prevent unauthorised adjustments.
You can also conveniently activate the “CPF Withdrawal Lock” under your account settings to instantly disable online withdrawals entirely. This means that withdrawals can only be made in person at CPF service centres.
What If I Change My Mind And Want To Reenable My Online CPF Withdrawals After Disabling It
You will have to increase the daily withdrawal limit with Singpass facial verification first and then wait 12 hours for the changes to be reflected.
You can also personally visit the office to make the amends.
Tighter Measures And More Steps Needed To Update Contact And Bank Details
When you update your contact details with CPF Board, as well as your bank account details, you will require Singpass facial verification.
As for a new bank account, the bank will first need to confirm that it belongs to the CPF member before it is processed. This will take a few working days.
Staying Vigilant Against Scams And Safeguard Your Lifetime Savings
The measures are part of efforts to safeguard CPF savings against fraudulent withdrawals online.
CPF members can be assured that their CPF savings can only be paid to bank accounts that are verified as belonging to them. They will also be notified immediately of any CPF withdrawals.
Members will receive notifications through SMS or e-mail whenever a withdrawal is made, when they update the daily withdrawal limit or update contact and bank account details.
The CPF Board advises members to contact them if they suspect that they have been scammed of their CPF savings. Members should call their bank to freeze their bank accounts, reset their Singpass password, and set their CPF daily withdrawal limit to S$0. A police report should also be made.
In June, some CPF members lost at least S$99,800 of their CPF savings due to malware scams.
Featured Image Credit: CPF
Read Also: 5 Most Common Scams In 2023 And How To Protect Yourself
Listen to our podcast, where we have in-depth discussions on finance topics that matter to you.
