CPF Top up questions

[rrr2015]

what about those who have refunded back their CPF housing?

You can withdraw your RA savings above the BRS fully if the expected CPF housing refund is able to restore your RA to your Full Retirement Sum when you sell/transfer the property in future.

 

[dork32]

I have contacted CPF Board regarding the ambiguity about whether CPF transfers under the RSTU scheme is also excluded from being withdrawn with property pledge. This is the response



So yes, both cash top-ups AND CPF transfers are excluded from being withdrawn with a property pledge.

thank you tangent. i also mentioned this somewhere, everyone say that i am wrong.

 

[tangent314]

what about those who have refunded back their CPF housing?

That doesn't count because it's not under the RSTU scheme.

 

[rrr2015]

i mean the condition before one is able to withdrawal above BRS is that CPF housing refund needs be able to restore RA back to FRS once selling the property?

so if one already refunded back CPF used for housing. there's nothing to be refund back to CPF after property been sold.

so under such circumstance, do "withdrawal above BRS" with property pledge still valid?

That doesn't count because it's not under the RSTU scheme.

 

[a4973]

i mean the condition before one is able to withdrawal above BRS is that CPF housing refund needs be able to restore RA back to FRS once selling the property?

so if one already refunded back CPF used for housing. there's nothing to be refund back to CPF after property been sold.

so under such circumstance, do "withdrawal above BRS" with property pledge still valid?

I am 55@2019 cohort. I had checked with CPF call centre about paying back OA used for housing previously & was told to leave at least 88k outstanding so that if I want to draw RA down to BRS in future I have the 88k outstanding to charge / pledge. so I didn't refund in full & left 90k outstanding.
But now that bank interest is so low I'm thinking of refunding the 90k.

 

[rrr2015]

thanks much for sharing! wonder why that wasn't mentioned in their article
https://www.areyouready.sg/YourInfoHub/Pages/News_BRS-FRS-ERS-What-are-they-for-.aspx

yeah might be good idea to refund back to OA (but verify again with them) if u don't need to withdraw above BRS

I am 55@2019 cohort. I had checked with CPF call centre about paying back OA used for housing previously & was told to leave at least 88k outstanding so that if I want to draw RA down to BRS in future I have the 88k outstanding to charge / pledge. so I didn't refund in full & left 90k outstanding.
But now that bank interest is so low I'm thinking of refunding the 90k.

 

[peppermint7]

I am 55@2019 cohort. I had checked with CPF call centre about paying back OA used for housing previously & was told to leave at least 88k outstanding so that if I want to draw RA down to BRS in future I have the 88k outstanding to charge / pledge. so I didn't refund in full & left 90k outstanding.
But now that bank interest is so low I'm thinking of refunding the 90k.

Hi. Looking at this link

https://mystocksinvesting.com/cpf/retirement-account-ra/pledging-our-property-to-cpf-retirement-account-ra/#:~:text=Anyone%20who%20owns%20a%20property,%24166%2C000%20(Basic%20Retirement%20Sum).

I don't think u need to leave any amount outstanding in order to pledge your property?

 

[a4973]

Hi. Looking at this link

https://mystocksinvesting.com/cpf/retirement-account-ra/pledging-our-property-to-cpf-retirement-account-ra/#:~:text=Anyone%20who%20owns%20a%20property,%24166%2C000%20(Basic%20Retirement%20Sum).

I don't think u need to leave any amount outstanding in order to pledge your property?

I vaguely recall something like if there is an outstanding then can easily pledge or charge but if there is no outstanding then must go through some process due to I believe CPF does not have full visibility of an individual's property ownership status. As I was uncertain I just left 90k outstanding

 

[peppermint7]

I vaguely recall something like if there is an outstanding then can easily pledge or charge but if there is no outstanding then must go through some process due to I believe CPF does not have full visibility of an individual's property ownership status. As I was uncertain I just left 90k outstanding

Perhaps you should seek 2nd advice from CPF again..

 

[henrylbh]

I have contacted CPF Board regarding the ambiguity about whether CPF transfers under the RSTU scheme is also excluded from being withdrawn with property pledge. This is the response

Quote:
MEMBER@cpf.gov.sg
Mar 5, 2020, 2:34 PM (1 day ago)
to me

Dear Mr xxxxxx

Thank you for your email of 2 March 2020.

You may apply to withdraw your Retirement Account (RA) savings *(excluding interest earned, any government grants received and top-ups made under the Retirement Sum Topping-up scheme) above your Basic Retirement Sum (BRS) if you:

are 55 years old and above; and
own a property with remaining lease that can last you to at least 95 years old. This recognises that your current home is sufficient to meet your retirement housing needs without the need to worry about incurring rental cost in old age.
You can withdraw your RA savings above the BRS fully if the expected CPF housing refund is able to restore your RA to your Full Retirement Sum when you sell/transfer the property in future.

*The exclusion on top ups under RSTU is regardless whether you top up using cash or CPF transfers.

I would be pleased to help if you require further assistance. For more information on CPF, please visit cpf.gov.sg or call 1800 227 1188 / +65 6227 1188 (overseas) from Monday to Friday, 8am to 5:30pm.

Yours sincerely
Karen Huang (Ms)
Customer Service Executive
Customer Contact Centre
Central Provident Fund Board

So yes, both cash top-ups AND CPF transfers are excluded from being withdrawn with a property pledge.

thank you tangent. i also mentioned this somewhere, everyone say that i am wrong.

Who is 'everyone says that I am wrong'? Did I?

But what does CPF transfers mean?

 

[peppermint7]

I have contacted CPF Board regarding the ambiguity about whether CPF transfers under the RSTU scheme is also excluded from being withdrawn with property pledge. This is the response



So yes, both cash top-ups AND CPF transfers are excluded from being withdrawn with a property pledge.

Thanks for the info now I can forget about BRS since I have topped up $160K via RSTU. My top up and interest is locked for good. One less decision to make.

 

[maple96]

Thanks for the info ****************** now I can forget about BRS since I have topped up $160K via RSTU. My top up and interest is locked for good. One less decision to make. ******************

If u transfer $160 from OA to SA, u can still pledge to withdraw BRS. But if u do cash topup of $160 to SA, then it is locked.

Dun just believe what others say without verifying with CPFB.

If he write the wrong question, he will get the wrong answers to your questions above

 

[tangent314]

BRS is a bad idea anyway.
Not only does it provide a bad choice, people have been wasting so much time figuring out all the rules.

 

[henrylbh]

BRS is a bad idea anyway.
Not only does it provide a bad choice, people have been wasting so much time figuring out all the rules.

How could you say that? Like one here, there is only one road to Rome?

 

[maple96]

BRS is a bad idea anyway.
Not only does it provide a bad choice, people have been wasting so much time figuring out all the rules.

How could you say that? Like one here, there is only one road to Rome?

So he got the wrong answers from CPFB to mislead others

 

[a4973]

Perhaps you should seek 2nd advice from CPF again..

I got it now. Please refer to https://dollarsandsense.sg/heres-need-know-pledging-property-meet-cpf-full-retirement-sum-frs/
So say my BRS is 88k, now if I have 90k outstanding & I withdraw 88k from my FRS of 176k & I subsequently sell my house 90k from my sales proceeds will be returned to my OA thus assuring that I have enough for FRS. Say now I have refunded OA used for property down to 30k outstanding, I can't withdraw 88k bcoz if I sell my house only 30k will be refunded to OA and since 30k < 88k it is not sufficient for me to hit FRS that is why I remember it as need to leave at least the amount equivalent to BRS as outstanding under funds used for housing.

 

[henrylbh]

I got it now. Please refer to https://dollarsandsense.sg/heres-need-know-pledging-property-meet-cpf-full-retirement-sum-frs/
So say my BRS is 88k, now if I have 90k outstanding & I withdraw 88k from my FRS of 176k & I subsequently sell my house 90k from my sales proceeds will be returned to my OA thus assuring that I have enough for FRS. Say now I have refunded OA used for property down to 30k outstanding, I can't withdraw 88k bcoz if I sell my house only 30k will be refunded to OA and since 30k < 88k it is not sufficient for me to hit FRS that is why I remember it as need to leave at least the amount equivalent to BRS as outstanding under funds used for housing.

Even if you refunded the full CPF used for housing, you can still pledge your property to withdraw amount in excess of BRS.

 

[peppermint7]

I got it now. Please refer to xxxxx
So say my BRS is 88k, now if I have 90k outstanding & I withdraw 88k from my FRS of 176k & I subsequently sell my house 90k from my sales proceeds will be returned to my OA thus assuring that I have enough for FRS. Say now I have refunded OA used for property down to 30k outstanding, I can't withdraw 88k bcoz if I sell my house only 30k will be refunded to OA and since 30k < 88k it is not sufficient for me to hit FRS that is why I remember it as need to leave at least the amount equivalent to BRS as outstanding under funds used for housing.

Im not sure if my interpretation is correct. It seems to me if u have fully refunded your housing. Upon sale of the pledged house, you can keep the amount above BRS.

But if u didn't refund this 88k, upon sale of house this 88k has to go back to CPF.

 

[henrylbh]

Must try to understand the difference between a charge and a pledge.

 

[henrylbh]

I got it now. Please refer to https://dollarsandsense.sg/heres-need-know-pledging-property-meet-cpf-full-retirement-sum-frs/

No, you still haven't got it

The article is not clear, but there is a sentence that mentioned ' .... the pleged property must be worth at least $88,000 ......' but the writer did not elaborate further