Singapore-based financial blog that aims to educate people on personal finance, investments, retirement and their Central Provident Fund (CPF) matters.

Friday 31 January 2020

Can I Use CPF to Buy a House After 55 Years Old?



Today's post will be on: Buying a House using your CPF after age 55.
This is part of the chain of housing-related posts.
We have the misconception that upon reaching age 55 if we sold our house, the money we get from it will be transferred to our Retirement Account (RA) until the Retirement Sum (or Minimum Sum) is met.

We would like to share today that, you can actually use the money in excess of half your applicable Retirement Sum to buy your next house if you are age above 55.

Example:
You are 54, you recently sold your house, and your applicable Retirement Sum is $155,000.
If you wish to buy a new house, you can withdraw the amount in excess of half your Retirement Sum ($90,500) to pay for your house.
However, let's say you do not meet your Retirement Sum (you only have $130,000).
Then you can withdraw the amount in excess of half your Retirement Sum ($90,500), meaning that you can withdraw ($130,000 - $90,500 = $39,500) to partially finance your new home.

Recommended Read: The HDB Pricing Dilemma

However, this usage of your Retirement Sum to finance your new home is not an automatic option.
You would need to make a request to CPF to allow you to reserve a portion of your OA to not transfer to your RA.
The instruction on how to do it can be found here.

For more information on this, you may visit CPF's website, or more simply email/comment us with your questions and we will do our best to find you the answers.

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