Appeals by CPF Members above 55 to Make Partial Withdrawals from Retirement Account to Purchase 2-room HDB Flexi Flats

Ms Sylvia Lim asked the Minister for Manpower what factors are considered by the Central Provident Fund (CPF) Board in deciding whether to permit an appeal by a CPF member above 55 years old to make a partial withdrawal from his or her CPF Retirement Account to purchase a 2-room HDB flexi flat on short lease.

Before CPF members turn 55, they can request not to transfer their Ordinary Account (OA) savings to their Retirement Account (RA) if they intend to use it for housing. After they turn 55, members committed to a housing purchase may also use their CPF balances in excess of the Basic Retirement Sum (BRS) to finance the housing purchase.

The CPF Board exercises flexibility for members facing financial hardship seeking to use CPF to purchase a 2-room flexi flat. For example, the Board has, upon appeal, allowed CPF members to use their RA savings that originated from their OA to pay for their housing, even if this results in their RA savings dipping below the BRS.

The Board takes into account members' retirement adequacy and the outstanding loan amount when deciding whether an exception can be made. The Board also works with relevant agencies, such as HDB, to tailor our assistance to members' circumstances.

Overall, we need to strike a balance between allowing CPF members to use their RA savings for housing needs and safeguarding such savings for their retirement, so as not to compromise retirement adequacy.