RES exam question on Financing: Mrs Chen turns 55 in 2026 with $200,000 in her Ordinary Account and $80,000 in her…
Mrs Chen turns 55 in 2026 with $200,000 in her Ordinary Account and $80,000 in her Special Account. Her FRS is $220,400 and her BRS $110,200. She owns a completed private property whose lease runs to her age 95, with $100,000 of bank loan outstanding. (i) Her $80,000 of SA savings move into her new Retirement Account first, then $140,400 from her OA. (ii) Once that transfer is made, her Special Account is closed. (iii) The $59,600 left in her OA can still be used to pay her housing loan. (iv) She keeps only the BRS in her RA, relying on her property, only if she applies to do so. Which of the statements above is/are correct?
- A(i) and (iii) only
- BAll of the above
- C(i), (ii) and (iii) only
- D(ii), (iii) and (iv) only
Show answer & explanation
Answer
B. All of the above
Explanation
Answer: All of the above. Each step follows the turning-55 rules: SA then OA fill the RA to the FRS, and keeping only the BRS needs an application.(i) True. SA savings move first, then OA savings, up to the $220,400 FRS.(ii) True. The SA is closed after the transfer, and any remaining SA savings go to the OA.(iii) True. OA savings remain usable for housing, so the $59,600 can pay her loan.(iv) True. With a lease to age 95 the lower sum is available on application, not automatically.Working:1. $80,000 + $140,400 = $220,400, the FRS.2. $200,000 - $140,400 = $59,600 left in her OA.Rule: At 55, SA and then OA savings move to a new Retirement Account up to the FRS, and the SA is then closed. A member whose completed Singapore property has a lease lasting to at least age 95 may apply to withdraw RA savings down to the BRS.Source: CPF Board, What happens to my CPF savings when I turn 55 and Withdrawal of CPF savings for property owners, cpf.gov.sg, read 1 Oct 2026; SA closure for members 55 and above from 19 Jan 2025; 2026 cohort: BRS $110,200, FRS $220,400
Study the concept behind this question: Property Financing in Singapore: LTV, TDSR & MSR
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