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

Question

Accepted Answer

The refunded amount will be transferred to your Retirement Account (RA) to meet your 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

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Principal amount withdrawn for the property and the accrued interest (P+I)	$500,000

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

New RA balance: $198,800

Part of the refund $100,000 is used to top up your RA to meet your 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 voluntary housing refund of $200,000 is used to reduce the P+I.

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

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