Some flexibility in CPF use for servicing home loans

WE REFER to the letters from Mr David Lee Wing Choy ("CPF scheme an obstacle to home-loan financing"; last Friday) and Mr Rajasegaran Ramasamy ("Let loans be settled before transferring CPF money"; last Saturday).

When Central Provident Fund (CPF) members turn 55, a Retirement Account is created from their Ordinary and Special Account savings. The amount in the Retirement Account provides members with a steady stream of income to meet their basic living expenses in retirement.

For members who are still servicing their housing loans after 55, we exercise some flexibility in the use of their Retirement and Ordinary Account savings to enable them to continue paying their outstanding housing loans.

We have contacted Mr Lee to explain how he can use his CPF savings for his housing needs.

CPF savings are for our retirement needs. Members are advised to be prudent and purchase property within their means.

There are resources on the CPF website, such as checklists, videos and calculators, that members can use to help plan their finances. Members can also sign up for our monthly talks to learn more about various aspects of the CPF system.

Irene Kang (Ms) Director,

Communications Division Central Provident Fund Board