Why You Should Sell Your HDB Property Before Turning 55

Your money in CPF may be locked—and you might not be able to afford your next, smaller HDB flat for retirement.

What Every HDB Homeowner Needs to Know at 55

If you're an HDB home owner approaching the age of 55, it’s crucial to understand how CPF policies can affect your next property move—especially if you're thinking of selling your HDB flat to rightsize or retire.

At age 55, the CPF Retirement Account (RA) is created automatically. This process moves funds from your CPF Ordinary Account (OA) and Special Account (SA) into the RA to meet the CPF Basic Retirement Sum (BRS).

While the CPF Retirement Account aims to support Singaporeans financially during retirement, it can limit your flexibility if you plan to buy another property.

The Problem: Why Some HDB Owners Can't Right-Size After 55

Many HDB flat owners aged 55 to 65 wish to sell their current homes and move into a smaller unit. The reasons are practical—children have moved out, a smaller space is easier to manage, and they want to free up cash for retirement planning.

But here’s what often happens:

1. CPF Refunds Get Locked Into the CPF Retirement Account

When you sell your HDB after 55, CPF requires you to refund the amount you previously used—including accrued interest—back into your CPF OA.

However, if you haven't met the CPF Basic Retirement Sum, a portion of that refund is transferred to the Retirement Account as BRS, where it becomes inaccessible for property purchases.

This means you may not have enough CPF savings left in your OA to fund your next flat.

2. You’ll Be Forced to Use Cash Proceeds to Buy Your Next HDB

Since your CPF OA has been drained to fulfil your BRS, you may need to use your cash proceeds from the sale to pay for the next property. This can severely impact your retirement savings, leaving you with less cash to fund your retirement lifestyle, medical needs, or other goals.

Many older HDB sellers find themselves caught in this situation:

• Can’t buy the next flat.

• Can’t retire comfortably.

• Cash is tied up or insufficient.

The Smart Move: Sell Your HDB Before You Turn 55

If you're turning 55 soon, you should plan your property sale early—before CPF locks your funds into the Retirement Account.

By selling your HDB before age 55, you can:

• Keep your CPF refunds in the OA, where they’re accessible for your next flat purchase.

• Retain full control over your cash proceeds.

• Avoid unexpected shortfalls during your retirement planning.

• Right-size into a smaller flat with ease and flexibility.

Key Takeaways for HDB Owners Planning for Retirement

• CPF policies can affect your ability to sell your HDB and rightsize after 55.

• Your CPF Basic Retirement Sum must be considered when planning any property move after that age.

• Selling before 55 ensures you can access your funds fully and plan your retirement on your terms.

• Always check your property value early and speak to a knowledgeable HDB resale specialist to avoid future roadblocks.

Final Thoughts: Take Action Before It’s Too Late

Your HDB flat is more than a home—it's a financial asset that could shape your retirement years. But without the right timing, CPF policies can make it difficult to cash out, downsize, or retire comfortably.

Thinking of retiring or selling your HDB soon? Let’s plan it together—before CPF rules kick in at 55.