CPF Members Aged 55 and Above with Outstanding Mortgage Payments
Ministry of ManpowerSpeakers
Summary
This question concerns Ms Hazel Poa’s inquiry regarding the percentage and median monthly mortgage payments of CPF members aged 55 and 63 and above, categorized by their retirement sum attainment. Minister for Manpower Dr Tan See Leng reported that for members aged 55 and above, usage of CPF for mortgages ranged from 6.5% to 10.5%, with median payments between $380 and $1,000. For those aged 63 and above, usage rates were lower, ranging from 1.8% to 4.2%, with median monthly instalments between $330 and $900 depending on their BRS or FRS status. The Minister clarified that median figures were used instead of averages to prevent data skewing by a small group of members with significantly higher monthly mortgage instalments. These statistics highlight the specific proportion of older members who continue to service property loans using their Central Provident Fund savings.
Transcript
53 Ms Hazel Poa asked the Minister for Manpower (a) what is the current percentage of CPF members aged 55 and above with outstanding mortgage payments; and (b) what is the average mortgage amount per month, broken down by (i) those who do not meet the Basic Retirement Sum (BRS), (ii) those who do meet the BRS but not the Full Retirement Sum (FRS) and (iii) those who do meet the FRS respectively.
54 Ms Hazel Poa asked the Minister for Manpower for CPF members who (i) do not meet the Basic Retirement Sum (BRS), (ii) meet the BRS but not the Full Retirement Sum (FRS) and (iii) meet the FRS (a) what is the percentage of CPF members aged 63 and above with outstanding mortgage payments; and (b) what is the average monthly mortgage amount.
Dr Tan See Leng: As the average mortgage instalments may be skewed by a relatively small group of members with higher mortgage instalments, it may be more representative to look at the median instead.
Of members aged 55 and above who had not attained the cohort Basic Retirement Sum (BRS), 6.5% were using their Central Provident Fund (CPF) to service monthly mortgage instalments with median amount of $380 in CPF savings used for mortgage instalment. Of members aged 55 and above who had attained cohort BRS but set aside less than the cohort Full Retirement Sum (FRS), 10.5% were using their CPF to service monthly mortgage instalments with median amount of $700 in CPF savings used for mortgage instalment. Of members aged 55 and above who had set aside the cohort FRS or more, 7.4% were using their CPF to service monthly mortgage instalments with median amount of $1,000 in CPF savings used for mortgage instalment.
Of members aged 63 and above who had not attained the cohort BRS, 2.5% were using their CPF to service monthly mortgage instalments with median amount of $330 in CPF savings used for mortgage instalment. Of members aged 63 and above who had attained the cohort BRS but set aside less than the cohort FRS, 4.2% were using their CPF to service monthly mortgage instalments with median amount of $590 in CPF savings used for mortgage instalment. Of members aged 63 and above who had set aside the cohort FRS or more, 1.8% were using their CPF to service monthly mortgage instalments with median amount of $900 in CPF savings used for mortgage instalment.