Property Pledges by CPF Members to Allow for Fund Withdrawal Beyond Basic Retirement Sum
Ministry of ManpowerSpeakers
Summary
This question concerns the number of CPF members pledging properties to withdraw Retirement Account savings above the Basic Retirement Sum and the subsequent use of those funds for spouse top-ups. Ms Foo Mee Har requested data for 2016, to which Minister for Manpower Lim Swee Say reported that 1,200 members utilized property charges or pledges for withdrawals in January and February. Minister for Manpower Lim Swee Say clarified that the ministry does not track whether cash withdrawals are used for spouse top-ups, though direct transfers are permitted without pledges. The policy requires a property pledge to ensure that a member’s Retirement Account is restored to the Full Retirement Sum if the property is sold in the future. This mechanism provides members aged 55 and above flexibility in accessing savings while maintaining the long-term objective of retirement adequacy through property-linked restoration.
Transcript
8 Ms Foo Mee Har asked the Minister for Manpower (a) in 2016, so far, what is the number of CPF members who choose to pledge their properties in order to withdraw their Retirement Account savings above their Basic Retirement Sum; and (b) how much of the amount withdrawn has been used to top up their spouses' CPF accounts.
Mr Lim Swee Say: Central Provident Fund (CPF) members aged 55 and above can withdraw their Retirement Account savings above their Basic Retirement Sum if they have a sufficient existing charge on their property. Those who do not have a sufficient existing property charge can still make such a withdrawal after making a pledge on their property. This property charge or pledge does not affect the ownership of the property and is intended to ensure that the member's Retirement Account is restored up to the Full Retirement Sum if the property is sold in the future.
In January and February 2016, 1,200 CPF members withdrew their Retirement Account savings above their Basic Retirement Sum through a property charge or pledge. Seven hundred of them turned 55 in January and February 2016 and became eligible to make such withdrawals. These members had withdrawn their Retirement Account savings in cash. We do not track whether any of them subsequently make cash top-ups to their spouses' CPF accounts.
CPF members can also directly transfer their CPF savings above their Basic Retirement Sum to their spouse's Special or Retirement Account, without the need for a property charge or pledge.