What happens when I make a voluntary housing refund if am 55 years old or older?

Question

Accepted Answer

The refunded amount will be transferred to your Retirement Account (RA) to meet your cohort’s Full Retirement Sum (FRS). This transfer will help boost your retirement savings and provide you with a higher monthly payout when you reach age 65.

Any refunds that exceed your FRS in your RA will remain in your Ordinary Account (OA), which you can withdraw anytime. You can check the amount you can withdraw on your Retirement dashboard.

Example

Assumptions:

1. You turned 55 years old in 2023

2. Your Full Retirement Sum is $198,800

3. You have received less than $30,000 in housing grants

If you make a voluntary housing refund of $200,000:

Current RA balance	$98,800
Current OA balance	$100,000
Principal amount withdrawn for the property and the accrued interest (P+I)	$500,000

New RA balance: $198,800

The refund of $100,000 is used to top up the RA to meet the FRS.

New OA balance: $200,000

The remaining refund of $100,000 remains in the OA after topping up your RA to meet the FRS. The balance in the OA can continue to be used for housing payments.

Revised P+I: $300,000

The refund of $200,000 is used to reduce the P+I.

What happens when I make a voluntary housing refund if am 55 years old or older?

Topics:

Related questions

Can I use my CPF savings to pay for my housing loan after I turn 55?

How do I apply to reserve my Ordinary Account (OA) savings, so that they will not be transferred to my Retirement Account and remain in OA for my housing payments after I turn 55 years old?

Do I have to refund the housing grant to my CPF account when I make a voluntary housing refund of the monies withdrawn for my property?

How much do I need to refund to my CPF account if I am transferring or selling my share of the property to someone else? Does the refund amount change when I turn 55?

Need more help?