Crediting of HDB Flat Sale Proceeds into Relevant CPF Account for Older Divorcees
Ministry of ManpowerSpeakers
Summary
This question concerns Ms Diana Pang Li Yen’s inquiry regarding policy exceptions for older divorcees whose HDB sale proceeds are credited to their CPF Retirement Accounts, leaving insufficient Ordinary Account funds for new housing. Minister for Manpower Dr Tan See Leng explained that while refunds first top up the Retirement Account to meet retirement sums, savings exceeding the Basic Retirement Sum may be used for 3-room or smaller flats. The Central Provident Fund Board considers appeals on a case-by-case basis to allow members to use additional Retirement Account savings for flat purchases or larger homes depending on their financial circumstances. In cases of genuine need, the Board collaborates with other agencies to provide tailored assistance that balances immediate housing needs with long-term retirement adequacy. Divorcing couples are also encouraged to seek guidance through the Housing and Development Board or the Housing Options Explorer on the Family Assist Portal.
Transcript
87 Ms Diana Pang Li Yen asked the Minister for Manpower whether targeted policy exceptions can be introduced for older divorcees whose HDB sale proceeds are credited into CPF Retirement Accounts, leaving insufficient Ordinary Account funds to buy another home, following a Court-ordered sale of their matrimonial flat, particularly where the divorce has not been initiated by them.
Dr Tan See Leng: When a Central Provident Fund (CPF) member sells a property purchased with CPF savings, the net proceeds will be used to return the withdrawn CPF amount, plus accrued interest, back to their CPF accounts. For CPF members aged 55 and above, housing refunds to their CPF accounts will first be used to top up their Retirement Accounts (RA) to meet their Full Retirement Sum. Any remaining balance is credited to their Ordinary Accounts (OA) and can be used for subsequent housing purchases.
The different CPF accounts ensure that members' CPF savings are spread out to meet their retirement, housing and healthcare needs. The RA savings are primarily intended to provide members with monthly payouts during their retirement. However, CPF members, including divorcees, can use housing refunds credited to their RA that exceed their Basic Retirement Sum to purchase a 3-room or smaller HDB flat, if qualifying conditions are met. Members can check the amount available for use via their home ownership dashboard on the CPF website.
The CPF Board considers appeals, on a case-by-case basis, by members to use more of their RA savings for flat purchases or to buy larger flats, taking into account their financial and household circumstances. When the Board encounters cases with genuine needs, we would work with other relevant agencies to provide tailored assistance. This approach balances housing needs with safeguarding retirement adequacy.
Divorcing couples can explore post-divorce housing options through the Housing Options Explorer on the Ministry of Social and Family Development's Family Assist Portal or by approaching the Housing Development Board for advice and assistance.