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es, that is how it works.

When you pledge your HDB and withdraw more CPF for retirement, the amount you took out, together with the accrued interest, becomes part of your CPF refund requirement. It does not disappear. It simply waits until the flat is sold.

If your children sell the flat after you pass on, the sales proceeds will first be used to:
1. Clear any outstanding loan, if any.
2. Refund to CPF the amount you used, including the extra 200k withdrawn and the interest that would have accumulated.

Only after these are settled does the balance go to your estate.

There is no extra penalty. It is just the standard CPF refund process that happens for anyone who used CPF for housing. If you want, I can run through a simple example with figures so you can see how the maths looks. Read More

Yes, this is how it will be processed from my understanding. For confirmation, it is advised to check directly with CPF for most accurate answer. Ultimately they are the authority that matters when it comes to the management of these funds.

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Hi,

1) According to the information provided under the CPF website, the $200k withdrawn from your RA will need to be refund back to your CPF account after the flat is sold.
2) Do note that your children do not need to pay anything to ensure the full required amount refund (including accrued interest) to anyone (including the CPF board).
3) Your $200k withdrawn will grow more since there is interest incurred (4%~6%), it is definitely more depending on when (total period) the flat is sold from the withdrawal.
4) The whole situation will be as follows:
(a) Sales proceeds - outstanding loan (if any) - CPF utilized + accrued interest (for buying the flat) - CPF utilized + accrued interest (RA withdrawal)
(b) Those involving CPF will return to CPF board and be distributed to your heirs according to your CPF nomination. Creating a Will won't affect the distribution according to your CPF nomination.
Note that CPF money is not part of your estate, so even if your Will says otherwise, the fund in your CPF account will still be distributed stricyly according to your CPF nomination.
(c) The balance from the sale proceeds after the (a) deduction shall go to your estate account.
(d) The balance in the estate account will then distributed according to your Will if there is any, otherwise it will be distributed according to the intestate succession act (if no Will).
5) I would further suggest you to get a direct confirmation from the CPF officer since they are the authority and have the final say over CPF matters.
6) You have to meet them anyway to do a pledging. Make an appointment with them to clarify the above, and do the pledging on the spot to settle everything in one go.

All The Best!!!

Hope the above answer to your main concerns, but if there are more query, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

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Your understanding is largely correct. However, would strongly advise you to conduct a property health-check of your HDB and your finances before making the pledge. Especially for HDBs, your children could very well end up in a negative sale situation down the line, years later when you pass away.

I'm a Harvard graduated real estate agent with a degree in economics, and I have a decade of experience working on Singapore public policy.

Happy to help with the free and quick health-check of your property and your finances so that you can make an informed decision. Feel free to reach out to me via email or whatsapp (details below). It will help to safeguard your children's future.

Kay Cloud
The Harvard Educated Agent
Propnex Realty Pte Ltd
cloud@propnex.com
Tel: (+6.5.) 8.5.6.7.4.5.8.5
Whatsapp -> https://wa.me/6585674585 Read More