The refunded amount will be transferred to your Retirement Account (RA) to meet your cohort’s Full Retirement Sum (FRS). This transfer will help boost your retirement savings and provide you with a higher monthly payout when you reach age 65.
Any refunds that exceed your FRS in your RA will remain in your Ordinary Account (OA), which you can withdraw anytime. You can check the amount you can withdraw on your
Retirement dashboard.
Example
Assumptions:
1. You turned 55 years old in 2023
2. Your Full Retirement Sum is $198,800
3. You have received less than $30,000 in housing grants
If you make a voluntary housing refund of $200,000:
| Current RA balance | $98,800 |
| Current OA balance | $100,000 |
| Principal amount withdrawn for the property and the accrued interest (P+I) | $500,000 |
New RA balance: $198,800
The refund of $100,000 is used to top up the RA to meet the FRS.
New OA balance: $200,000
The remaining refund of $100,000 remains in the OA after topping up your RA to meet the FRS. The balance in the OA can continue to be used for housing payments.
Revised P+I: $300,000
The refund of $200,000 is used to reduce the P+I.
