Query on property pledge for Min Sum

[aspeed]

Hi Kichialo,

Thanks for the clarification. Does it mean assuming I am 55 and have a CPF balance of $188,000; I can pledge only $77,500 from my CPF balance, withdraw $110,500 and pledge the remaining using property instead of pledging $155,000 into CPF life and withdrawing only $33,000. However, my payout will be based on $77,500 that remains?

I remember listening to Moneymind and someone called in to ask something similar. The reply from the financial expert on the show is similar to what you said, but he said best is always double check with CPF.

I thought my first reply is clear, or maybe you are not convinced of my reply.

By pledging property, it only reduce the mandatory requirement of min sum by half. CPF do not "fund" or "top up" the other remaining half. You can simply view it as you are just putting in $77,500 into min sum, and you get what you put in.

On your question of if one has $188K, if he pledge his property, his min sum requirement is now $77.5K, so yes he can withdraw all the remaining $110.5K. If he sell house later on, he need to top back the half back. If he do not pledge the property, his min sum requirement is $155K, and get back $33k at 55.

See, direct from CPF:

http://mycpf.cpf.gov.sg/NR/rdonlyres/4DB...nglish.pdf