Using CPF Savings for Housing Loans After 55: For HDB Flat Sellers

Jul 09, 2024By Zen

Understanding CPF Savings After 55

As you approach 55, the use of your CPF savings changes. This can impact how you use these funds for housing loans. Many HDB flat sellers find it crucial to understand these changes to make informed decisions.

At 55, your CPF savings are divided into the Ordinary Account (OA), Special Account (SA), and Medisave Account (MA). The Retirement Account (RA) is also created. The RA is meant to provide for your retirement needs.

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If you do not have enough in your OA after setting aside the FRS, you may need to use cash to cover the shortfall. It is essential to plan ahead to ensure you have enough funds.

Can You Use CPF Savings for Housing After 55?

Yes, you can continue using your Ordinary Account (OA) savings to pay for your housing loan after turning 55. However, on your 55th birthday, a Retirement Account (RA) is created, and savings from your Special Account (SA) and OA up to your Full Retirement Sum (FRS) are transferred to the RA. The excess after fulfiling your Full Retirement Sum (FRS) will be kept in your OA which you can utilise it for your monthly mortgage instalments.

CPF Full Retirement Sum Table
CPF Full Retirement Sum figure applicable to members turning 55 in the listed respective year

Considerations for HDB Flat Sellers

If you are selling your HDB flat, consider the timing. Selling your flat before 55 can give you more flexibility with your CPF savings. After 55, you must adhere to the rules regarding the FRS and the RA.

It is also important to consider the resale market. Understanding market trends can help you make a more informed decision about when to sell your flat effectively and ensure financial stability in your retirement years.

To find out more about CPF usage for housing purchases upon turning 55, refer to our blog CPF Savings for Housing and Mortgages After 55.

HDB flat

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