CPF members hold both an Ordinary Account, usable for housing, and a Special Account, which is not. The Special Account exists purely to build up retirement savings and earns a higher 4 percent per annum, compared with 2.5 percent on the Ordinary Account, so property buyers sometimes wonder whether it can help fund a purchase. It cannot; SA savings stay untouched by a property transaction.
This distinction matters at the point of sale too. When a property is sold, only the Ordinary Account principal used plus its accrued interest needs to be refunded, the Special Account is unaffected because it was never drawn on. A strong SA balance is therefore a retirement asset that a property purchase or sale does not disturb.
From age 55, CPF Special Account balances close and move into a new Retirement Account, up to the Full Retirement Sum, with any excess going to the Ordinary Account, so the SA as a standalone account only exists before 55.
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Book a free 30 minute callWinfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Verify current figures with IRAS, HDB, CPF Board, or MAS before making any decision.