,

I recently had a meaningful conversation with a client who had just upgraded from his HDB flat to a condominium. Like many others, he used his CPF Ordinary Account (OA) to fund the purchase of his first home. Upon selling it, he had to refund the CPF principal amount withdrawn plus the accrued interest — including any housing grants received.

However, here's the catch: after repaying the housing loan and other sale-related costs, the full sales proceeds may not necessarily be available for your next purchase. This is something many people overlook.

Now, this client is turning 55 in about 10 years. He was concerned — will I be able to meet my Full Retirement Sum (FRS) by then?

He’s now caught between two options:

1. Use more CPF OA to fund the condo, which risks falling short of the FRS later, or
2. Use more of his cash to preserve his CPF for retirement.

This is a common dilemma, and it's important to plan ahead — especially because the Full Retirement Sum has been rising steadily over the years.

CPF Retirement Sum Trends

During Budget 2022, it was announced that the Basic Retirement Sum (BRS) would increase by 3.5% per year from 2023 to 2027.

• The Full Retirement Sum (FRS) is set at 2x BRS,
• And from 2025, the Enhanced Retirement Sum (ERS) will be raised to 4x BRS — giving CPF members the option to top up more for higher payouts.

Here’s a projected FRS chart based on when you turn 55 — so you can see what CPF amount you’ll need before you can withdraw any excess savings.

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

Questions to Reflect On:

• Are you on track to meet your Full Retirement Sum by 55?
• Have you factored in how much CPF will go back into your OA after selling your property?
• Will using more CPF OA now limit your retirement options later?

When was the last time you checked your CPF balances?

Best Regards,

Zest Chia

Executive Wealth Consultant | Associate Estate Planning Practitioner |

Licensed General Insurance Advisory

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