,

I hope you have been doing well since we last connected at the DirectAsia roadshow!

Lately, I have been speaking with several clients who’ve upgraded their homes or are planning to—and one topic keeps coming up: how property decisions today can impact CPF savings and retirement goals tomorrow.

A Real-Life Scenario

Recently, a client upgraded from his HDB flat to a condo. Like many, he used his CPF Ordinary Account (OA) to fund his first property. But upon selling, he had to refund not just the principal CPF amount used but also the accrued interest, including any housing grants received.

After settling his housing loan and other costs, he realized the cash proceeds were less than expected. Now, with about 10 years left before turning 55, he’s asking:

“Will I still meet my Full Retirement Sum (FRS) by then?”

This is a common dilemma:

• Option 1: Use more CPF OA now for the new property—but risk falling short of your FRS later.
• Option 2: Use more cash upfront to preserve CPF savings for retirement.

Why This Matters More Than Ever

With CPF Retirement Sums increasing yearly, planning early is key.

📈 Did You Know?

Starting from Budget 2022, the Basic Retirement Sum (BRS) is set to rise by 3.5% annually until 2027:

• Full Retirement Sum (FRS) = 2x BRS
• Enhanced Retirement Sum (ERS) = 4x BRS (from 2025 onward)

⚠️ Do note that these projections may change depending on economic conditions and policy updates.

Questions to Reflect On:

1. Are you on track to meet your FRS by 55?
2. If you sell your property, how much CPF will you need to refund?
3. Could using more CPF OA now limit your retirement flexibility later?
4. When did you last review your CPF balances?

If this resonates with you, I would be happy to help, whether it’s a quick CPF review, a chat about your options, or just sharing insights.

No obligations, just clarity.

Let me know if you’d like to connect!

Warm regards,

Zest Chia

Executive Wealth Consultant | Associate Estate Planning Practitioner |

Licensed General Insurance Advisory

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