Why is it mandatory that net sale proceeds (from a HDB flat) less than $60,000 must be used to top up seller’s CPF?
If the CPF member has already passed the age of 55 & he has maintained the Basic Sum in the RA account, why insist he must top up his CPF? Why do we not have a choice to decide how we wanna use our own money?
Appreciate it if CPF or any authority which dictates such implementation could give a clear explanation. We need to understand the rationale.
Uncle Leong: Not required if one does not wish to apply for the Silver Housing Bonus of up to $20,000
Frances has asked an excellent question.
I would like to point out that the top-up amount is up to the Full Retirement Sum (currently $171,000), and not the Basic Retirement Sum of $85,500 mentioned by Frances.
Also, it applies to the joint-owners of the flat. So, it may effectively be up $$342,000 ($171,000 x 2).
Of course, if you do not wish to apply for the Silver Housing Bonus of up to $20,000 – you don’t have to do anything (top-up your CPF in order to get the Silver Housing Bonus).
Additionally, Frances has brought up a pertinent point – if you really want to help lower-income elderly Singaporeans to retire by downgrading to a smaller HDB flat (not bigger than 3-room) – why not just give them the money outright, instead of requiring a top-up to their CPF accounts.
From Ah Kiang,
To qualify for SLB $20,000, one need to top up with the sales proceed. $171,000×2 for two owners. So can they pledge and if yes $85500 each. Or $85500÷2.
Yes. One can pledge property up to $85,500 each.However, there must be sales proceeds top-up to CPF in order to qualify for the SHB.
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