What is the CPF Basic Retirement for people born in 1956?

When a seller of an HDB flat, born in 1956, sells their current flat and buys another HDB flat, there are several factors to consider regarding the use of their CPF Ordinary Account (OA) savings.

Using CPF for the New Purchase

• The seller must refund the CPF principal amount withdrawn and its accrued interest from the sale of the previous flat back into their CPF account. If the seller is 55 or older, the housing refunds will first be used to top up their Retirement Account (RA) to the Full Retirement Sum (FRS), and any balance will remain in their OA.
• They can then use the savings in their OA to buy another property, but they must ensure that they have set aside the Basic Retirement Sum (BRS) in their CPF account.

Basic Retirement Sum (BRS) for People Born in 1956

• For individuals born in 1956, the Basic Retirement Sum (BRS) is the amount that needs to be set aside in the Retirement Account (RA) to ensure a basic monthly income during retirement. As of the current rules, the BRS is adjusted based on the year of birth, but for someone born in 1956, they would need to meet the applicable BRS for their age group, which is typically around $93,000 as of recent guidelines, though this amount can vary based on the specific year and any updates to the CPF rules.

Additional Considerations

• The remaining lease of the new HDB flat must be considered. If the remaining lease cannot cover the youngest buyer until they are at least 95 years old, CPF usage will be pro-rated.

In summary, while the seller can use their CPF OA savings for the new purchase, they must first refund the CPF amounts used for the previous flat and ensure they meet the BRS requirement. The amount of CPF they can use may also be limited by the remaining lease of the new flat.