We refer to the article "CPF rules, being close to family among reasons for upgrading to condos" (Nov 15).

The article quoted a Central Provident Fund (CPF) member who said that it was the best time for her to sell her flat because she will be 55 next year and will not be able to access her CPF savings in full for housing payments for a new property.

This is a common misperception by many CPF members and is not true. CPF members need not rush to buy their properties before reaching 55 years old. They can reserve all or part of their Ordinary Account (OA) savings before they turn 55, to pay for their housing needs after age 55. The OA savings reserved will not be transferred to their Retirement Account (RA) and can be used to pay for an existing property or to buy one in future.

However, setting aside less in the RA will mean receiving a smaller amount of monthly payouts in future when they retire. Hence, members should think carefully about their housing and retirement needs when deciding whether to reserve their OA savings.

The application to reserve OA savings for housing can be easily made via the CPF website.

Peh Er Yan

Group Director (Housing and Investment Group)

Central Provident Fund Board