28 Feb 2025
SOURCE: CPF Board
If you own a property in Singapore with a lease that lasts you up to age 95, you may withdraw part of your RA savings.
Before you do so, it’s important to understand this process as it is an irreversible decision that can affect your retirement plans. Read on to learn more about withdrawing your RA savings with property.
Understanding RA withdrawal with property
Because property owners won’t need to worry about rent during retirement, they have the flexibility to set aside their Full Retirement Sum (FRS) with a mixture of property (up to half the FRS, which is the Basic Retirement Sum (BRS)) and cash, and withdraw part of their Retirement Account savings down to the BRS.
This means you can access more of your CPF savings while still owning your home.
What is the CPF retirement sum?
Before we dive deeper, it’s important to learn more about the CPF retirement sum.
When you turn age 55, the savings from your Special Account (SA), followed by Ordinary Account (OA), will be transferred to a newly opened Retirement Account (RA). The amount to be transferred is capped at the FRS and will ultimately determine your future monthly payouts.
If you own a property in Singapore with a lease that lasts until you are 95 years or older, you have the flexibility to meet your FRS with a mixture of property (up to half your FRS) and cash and withdraw part of your RA savings (excluding interest earned, any government grants and top-ups). However, this would also mean that you will have lesser for your retirement in terms of monthly payouts from CPF LIFE.
How much of your RA savings can you withdraw if you own a property?
The amount and process vary depending on how you financed your property purchase.
If you have used CPF savings for your property
You can withdraw your RA savings* as long as the retirement sum you set aside after the withdrawal, plus the CPF savings you have used for the property including the accrued interest (P+I), is enough to make up your Full Retirement Sum (FRS).
When you sell your property, the CPF savings you used to pay for it, including accrued interest (P+I), will be refunded to your CPF account.
If you used none to little CPF savings for your property
If you did not use CPF savings for your property or if the CPF savings used for the property amount is low, you can still make a withdrawal from your RA savings*, by pledging to refund the amount withdrawn when you sell or transfer your property.
The exact withdrawable amount is subject to additional assessment, such as the current value of the property, the outstanding loan, and co-owners' share.
What happens if you sell your property?
You will need to refund the following when you sell or transfer the property:
the CPF principal amount that you had withdrawn for your property including the accrued interest (P+I); and
the amount withdrawn from RA that you have pledged to refund, if any.
Your refunds will be used to restore your RA up to the FRS, which will result in higher monthly payouts.
4 factors to consider before making a withdrawal
1. Irreversible process
Making a withdrawal from your RA is a permanent process that can affect your retirement plans. It’s important to think through and review your finances (both in the long and short term) before making a decision.
2. Need for liquidity
Having liquid cash can be beneficial if you have immediate financial needs or prefer to have more liquid assets at your disposal.
Some might also use it to make their own investments. Note that all investments come with their own risks, and it’s important to fully understand them before putting down your hard-earned money
3. Lower monthly payouts for life
Withdrawing from your RA lowers the monthly payouts that you will receive from CPF LIFE. This means you will have lesser payouts in your retirement, which might affect your retirement plans.
Use the Retirement Payout Planner to plan your retirement payouts. You can also simulate CPF actions (e.g. top-ups) and visualise the impact on your projected payouts and savings.
4. Lesser sales proceeds when selling your flat
If you have pledged your property to withdraw from your RA, you will also have to refund the amount pledged to your RA when you sell your flat. This means that you and your co-owners (if any) will receive lesser cash proceeds than if the property had not been pledged.
Withdrawing your RA savings if you are a property owner
Withdrawing your RA savings allows you to have more liquid cash on hand. However, this also affects your lifelong monthly retirement payouts from CPF LIFE.
It’s important to take the time to consider your options carefully and weigh the pros and cons involved. Learn more about the withdrawals of CPF for property owners to make an informed decision.
Information is accurate as of the date of publication.
