Cash Withdrawal Restrictions on Lease Buyback Scheme Proceeds Despite Meeting Basic Retirement Sum

Assoc Prof Jamus Jerome Lim asked the Minister for National Development why an individual who undertakes the Lease Buyback Scheme before age 65 and has already met the Basic Retirement Sum may be required to use additional proceeds for CPF retirement payouts rather than being permitted to withdraw the amount in cash.

Mr Chee Hong Tat: The eligibility age for the Lease Buyback Scheme (LBS) is 65. The Housing and Development Board may make exceptions for those with extenuating circumstances to take up the LBS at a younger age.

Proceeds from the LBS are first used to top up owners' Central Provident Fund (CPF) Retirement Account, before balance proceeds can be withdrawn in cash. The required CPF top-up may vary depending on individual circumstances, to balance between enhancing retirement adequacy and allowing proceeds to be kept as cash.