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You can apply to reserve all or part of your Ordinary Account (OA) for housing payments. This prevents these funds from being automatically transferred to your Retirement Account (RA) when you turn 55.

 

You can apply within six months before your 55^th birthday. Please allow at least five working days for processing.

 

You do not need to reserve your OA savings if:

 

• You have fully redeemed your housing loan, unless you need to use them for your future housing payments; or
• Your Special Account (SA) savings can meet your Full Retirement Sum (FRS) so your OA savings will not be transferred to your RA.

However, you cannot reserve your OA savings if you are above 55 years old or have withdrawn your CPF under the Reduced Life Expectancy (RLE) scheme.

 

The reserved amount will remain in your OA and earn 2.5% instead of being transferred to your RA to earn 4% interest. This could reduce your monthly payouts when you are eligible to start your monthly payouts, so it is important to plan your finances carefully and consider how housing reservations may impact your retirement plans.

 

The reserved OA savings can only be used for housing payments, subject to applicable housing withdrawal limits. You cannot use these reserved funds for other CPF schemes, including Home Protection Scheme premiums.

 

When you begin receiving monthly payouts, any unused reserved OA savings will be transferred to your RA if you have not set aside the FRS. This transfer helps to increase your monthly payouts. Please remember to make alternative financing arrangements for your housing loan repayments when you apply to start monthly payouts.

 

If you would like to amend your reservation, please visit this FAQ. To cancel your reservation entirely, please visit this FAQ.