Any contributions during the month only start earnings dividend/interest on the last day of that month.
Irrespective the actual day the monthly contribution is deposited.
Thereon, dividend earning/interest is calculated daily based on your account balances.

For withdrawal, dividend for the withdrawal sum is only eligible up to the day prior to withdrawal day. No dividend will be given on the withdrawal day.

In a way, dividend/interest calculation is similar like a normal banking saving account for the withdrawal part.
But for deposit, the balance is only effective at the end of the month of deposit. Thereon, it is calculated based on daily based on your balances.

At the end of the calendar year, the dividend earned will be credited to your account balance and will be parted of your next year dividend/interest calculation.

Did some reading from the CPF website etc. This is my understanding. Not sure whether I got it all correct ...

Singapore had an elaborate CPF scheme for monthly payout after age 55. Before 55, members contribute to 3 accounts, Ordinary Saving(OA), Special Saving(SA) and MediSave(MA) account.
At the age of 55, funds from these accounts will moved to a new account call Retirement Account (RA), up to an amount = Full Retirement Sum (FRS).
FRS figures are set by Singapore government and it changes (increase upward) every year to adjust to inflation and rising cost of living. As at 2023, FRS = $198,800. For those who reach the age of 55 in 2023, this figure remain the same for future calculation. For those reaches age 55 in 2024, the FRS amount is different (slightly higher).
If a contributor have more than $198,800 at age 55 in 2023, he/she can withdraw amount above the FRS amount unconditionally.

If a contributor do have a property with lease up to his/her age of at least 95 year old, he/she can opt for a lower threshold, BRS (Basic retirement sum) = $99,400 instead, which is half the amount of FRS. Meaning, contributor can withdraw unconditionally, his/her savings above the BRS amount.
The Singapore government reckon that if you already own a property, your monthly expenses is lesser. FRS amount is to take into consideration of rental. Noted that FRS = 2x of BRS.

If contributor want to have higher monthly payout, he/she can opt for Enhanced Retirement Sum which is 3x of BRS = $298,200 voluntarily. This will give better monthly payout and a better lifestyle. Singapore government give choices to their citizens. If you are financial ok and can managed your finances, you just need to set aside a Basic Retirement Sum as a safety net.


What happens to your CPF when you turn 55

Why can't I withdraw all my CPF savings at 55?


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Look like EPF's proposal to make it mandatory for new members to withdraw their savings periodically instead of a lump sum upon reaching 55 years old will be a generational change. Existing members optional.

Generational change = 20 to 30 years time?

Poster claiming govt agreed monthly epf withdrawal is fake

KUALA LUMPUR (July 11) The Employees Provident Fund has clarified that there is no change to the current lump sum withdrawals at age 55 and 60 for its existing members. The current EPF monthly withdrawal option only applies to members who voluntarily opt in.

In a statement, the EPF said the proposed mandatory monthly withdrawal option will only apply to new EPF members born in or after 2010, and registered with the EPF after the implementation date.

"The first payout under the mandatory option is only expected to be made when these new members retire, some decades in the future. This proposal is still being refined, and the EPF assures that any decision regarding the mandatory monthly withdrawal option will only be made with careful consideration and alignment with the EPF’s commitment to the best future interests of its members," the statement read.

(More to come)


EPF: No change to lumpsum retirement withdrawal for members

EPF introduce FSA2 scheme which is a facility that aims to help EPF members obtain personal financing from banking institutions.
So far, two banks are participating in FSA2 namely MBSB and Bank Simpanan Nasional, more banks could be include in the future.
The rates are supposedly competitive and contributors will be using their money in EPF account 2 as collateral.

Suggest to check with KWSP website and the participating banks to obtain details if interested in this type of financing.

My advice is to stay away from ads from Instagram etc. Not sure whether these are legitimate money lenders etc. Saw articles in newspaper about people getting in trouble with loan sharks just by acquiring for details.

https://www.thestar.com.my/news/nation/2023...ans-from-friday
https://fsa2.kwsp.gov.my/

After age 55, your self contribution will go into Account Emas which can only be withdraw at age 60 onward.
You can do voluntary self contribution until before age of 75.

Your balance in Account 55/Account Emas will enjoyed dividend until age 100.
At age 100, balance will be transfer to unclaimed money.

https://www.kwsp.gov.my/member/contribution...lf-contribution
https://www.kwsp.gov.my/en/web/guest/w/clar...ividend-payment

I find this OMNI calculator with compounding interest could be use to work out different set of annual expenses, ROI, inflation rate and number of years etc.
For starting amount of 1.8M with 4.5% dividend yield and 3% inflation rate, can spend around 54K per year for expenses and still keep the balance of around 1.8M after 30 years. Note that 30 years later, the 1.8M in today money is around 800K taking into consideration inflation rate of 3%.
If annual expenses is around 27K, with higher ROI of 5.5% & inflation rate of 3%, starting amount needed is probably less than 1M.

https://www.omnicalculator.com/finance/compound-interest

Thanks! Had tried with same inputs for 1.08M starting amount and yearly withdrawal of 27K.
Come out with the same final balance of 2,469,576.15 as OMNI calculator.
Good to have the breakdown of the withdrawal schedule by MyCalculator.

IMHO, keeping money in EPF saving and get dividend of around 5.5% is a very good and trouble free method for retirement planning.
Let use the following figure as an example for retirement planning for 20 years.

Using OMNIcalculator/myCalculator, I would need to have around 1.5M in EPF saving as a starting balance if I want to maintain a lifestyle of around 6K per month (today money) and an emergency fund of around 500K (in today money).

For withdrawal of 72K yearly (6K per month) with adjustment for 3% inflation, with a ROI of 5.5%, will have a final balance of around 999K after 20 years.
Adjusted for inflation, in today money, final amount will be > 500K.

Can adjust the expenses amount up or down depending of one need and the number of retirement years etc.
EPF allows schedule monthly withdrawal to your bank account or anytime on as need basis instead of yearly lump sum.

Need to know how many retirement years and what is your provision for emergency fund.
Let say retirement years is 20 years and you provide for 100K (in today money) for emergency fund.
ROI = 4.5%, Inflation = 3%. Annual expenses = 1.5K x 12 = 18K

Based on the calculators, need starting balance of 400K for 20 years. If for 30 years, need almost 500K.