31 Oct 2025
SOURCE: CPF Board
Purchasing a home is not just something you do early in life. Whether you're right-sizing or upgrading, you might find yourself buying another property at a later stage.
While the savings in your Ordinary Account (OA) can be used for purchasing a home, certain rules apply when you reach age 55. This is because your CPF savings are also meant to support your retirement needs.
Here’s what you need to know if you are using your CPF savings for purchasing a home once you are age 55 and above.
1. Keep an eye on your retirement
With your golden years approaching, it’s important to keep sight of your retirement planning when making large purchases. After all, the decisions you make today can affect your future retirement lifestyle.
By prudently choosing a home that is within your means, you can better secure your finances and ensure that you have enough for both your housing and retirement needs in the future.
2. Your CPF housing refunds will first be used to top up your Retirement Account (RA) to your Full Retirement Sum (FRS).
If you currently own a property that you have used your CPF savings to pay for, you will have to refund the CPF principal amount withdrawn and its accrued interest after the sale of your property. If you have pledged your property to make up your Retirement Sum, you will also have to refund the pledged amount. Together, this is known as the CPF housing refund.
As you are aged 55 and above, your CPF housing refunds will have to be first used to top up your Retirement Account (RA) to the Full Retirement Sum (FRS).
What’s left of the housing refunds will remain in your Ordinary Account (OA) for you to buy your next property, transfer to your RA for higher retirement payouts, withdraw in cash for immediate needs, or simply left untouched to earn risk-free interest.
You can get an estimate of these amounts from your Home ownership dashboard.
3. With reduced CPF contribution rates, you might have to pay more cash to support your mortgage
The CPF contribution rates decrease when you reach age 55, with a higher percentage of your CPF contributions being distributed to your MediSave Account and Retirement Account (if you have not met the FRS). This means that you might have less in your OA to pay for your mortgage each month.
When looking to purchase a home at age 55 or later, take the reduced CPF contribution rate into account and ensure that your monthly CPF contribution is enough to cover your monthly instalments. If not, you might have to pay for it in cash.
Using CPF savings for housing at age 55 and beyond
Your CPF savings can be used for your housing needs at age 55 and after. However, keep the CPF housing refunds, reduced CPF contribution rates, and your future retirement needs in mind when deciding to make such a purchase.
You can also stay updated on how you can manage your housing loan or refer to these housing options that are suitable for retirees. Happy house hunting!
The information provided in this article is accurate as of the date of publication.
