Requests for Use of CPF Retirement Account Funds to Service HDB Housing Loans or Purchase HDB flats
Ministry of ManpowerSpeakers
Summary
This question concerns appeals to use CPF Retirement Account (RA) savings for HDB housing loans or purchases, as raised by MP Gan Thiam Poh. Minister for Manpower Josephine Teo shared that the CPF Board approves approximately 80% of these requests annually, exercising case-by-case flexibility. While RA funds are primarily for retirement payouts, use for housing is generally allowed after setting aside the Basic Retirement Sum. Most successful appeals involve Ordinary Account savings that were automatically transferred to the RA when the member reached age 55. For rejected cases, the CPF Board works with HDB to offer alternative assistance, including the potential reduction or deferment of housing loan instalments.
Transcript
19 Mr Gan Thiam Poh asked the Minister for Manpower (a) for each of the past five years, how many appeals have been received to request use of monies in the CPF Retirement Account to service HDB housing loans or purchase HDB flats; (b) how many of these appeals have been approved; and (c) whether CPF and HDB will work together to provide assistance to those whose appeals are rejected.
Mrs Josephine Teo: Our CPF system aims to help members meet three basic needs in retirement – housing, medical care and day-to-day spending. The bulk of members' CPF contributions goes into the Ordinary Account (OA), which may be used to buy a home. MediSave helps them pay for MediShield Life premiums and major medical expenses not covered by insurance.
The primary purpose of Special and Retirement Accounts (RA) savings is to ensure that members have a stream of retirement payouts to fund basic day-to-day spending. Generally, members can only use their RA savings for housing after setting aside their Basic Retirement Sum (BRS).
However, the CPF Board does exercise flexibility on a case-by-case basis. Over the last five years, CPF Board approved around 80% of such appeals per year on average. These are mostly cases where some of members' OA savings had been transferred into the RA when they turned 55.
To help members whose appeals were rejected, CPF Board works with HDB to assess if other more appropriate forms of assistance can be provided. For example, HDB may consider reducing or deferring the housing instalments to help flat owners who have difficulty repaying their HDB loan.