A Singapore press holdings portal

Asian Opinions, Mailbox

Sunday, Jun 29, 2014

Asian Opinions, Mailbox

Mailbox: CPF scheme an obstacle to home-loan financing

The Straits Times | Sunday, Jun 29, 2014

I recently turned 55 and was shocked to find out that my Central Provident Fund (CPF) Ordinary Account and Special Account had been transferred to the Retirement Account.

I am still servicing my HDB housing loan using my Ordinary Account and now have a problem meeting the monthly payments.

My monthly take-home pay is only about S$1,500.

My wife is not working due to health reasons and my only child, who joined the workforce recently, does not have a fixed income at the moment.

I have asked CPF staff about the issue but was told that that was the policy.

Were there considerations for people in lower-income groups who depend on the Ordinary Account to service their housing loans, when the Retirement Account scheme was drawn up?

If I am unable to even secure a roof over my family's head now, how can I think about retirement down the road?

While I don't object to locking up funds in the Special Account for the Minimum Sum, is there a need to do the same with the Ordinary Account funds?

I hope the authorities can look into "returning" my Ordinary Account funds to me so that I can service my housing loan and not risk having my home repossessed by the bank.

David Lee Wing Choy

No comments yet.
Be the first to post comment.