To help Singaporeans strengthen their CPF retirement savings, the government has introduced a flexible option in 2025 known as the Voluntary Housing Refund (VHR). This scheme allows homeowners to voluntarily return CPF funds used for housing, including accrued interest, back into their CPF accounts — helping them rebuild their retirement nest egg over time.
The move supports national efforts to encourage financial security and long-term planning, especially among those who may have used a significant portion of their CPF Ordinary Account for home purchases.
The VHR initiative is not compulsory. Instead, it provides Singaporeans with greater autonomy to manage their CPF balances and ensure a stable income stream during retirement.
Overview Table: Voluntary Housing Refund 2025
| Feature | Details |
|---|---|
| Purpose | Boost CPF retirement savings by refunding past CPF housing withdrawals |
| Refund Type | Voluntary – not compulsory |
| Eligibility | Singaporeans who used CPF for housing (e.g., downpayment, mortgage) |
| Minimum Refund Amount | No minimum required; partial refunds allowed |
| Accrued Interest Component | Yes – members may return both principal and accrued CPF interest |
| Refund Channel | CPF Voluntary Housing Refund (via CPF portal or bank transfer) |
| CPF Account Credited | Ordinary Account or Retirement Account (depending on member’s age) |
| Tax or Penalty Involved | None – refunds are non-taxable and fully voluntary |
| Official Website | https://www.cpf.gov.sg |
Why the Voluntary Housing Refund Was Introduced
Many Singaporeans use CPF savings to pay for housing, but doing so reduces the amount available for retirement. To address this gap, the Voluntary Housing Refund scheme gives homeowners the chance to return funds — either in full or in part — to their CPF accounts at any time.
This provides a practical option for those who may have spare cash from bonuses, property sales, or investment returns, and want to improve their future retirement payouts.
By offering this scheme, the government encourages a more sustainable and flexible approach to retirement planning — without making it compulsory or penalizing those who choose not to participate.
Who Can Make a Voluntary Housing Refund?
This scheme is open to any CPF member who has used CPF savings for housing purposes — whether for purchasing HDB flats, private homes, or servicing monthly mortgage payments using their CPF Ordinary Account.
Eligibility Criteria:
- Must be a Singapore Citizen or Permanent Resident
- Must have used CPF funds for housing (downpayment, stamp duty, legal fees, monthly installments)
- Must not be under legal enforcement or bankruptcy restrictions
- Refunds can be made by any party, including homeowners or their family members (e.g., children refunding on behalf of parents)
There is no income cap, age restriction, or minimum amount required to make a refund.
How the Refund Helps Your CPF Retirement Savings
All refunded amounts go back into your CPF account and begin earning CPF interest immediately. The benefit is twofold:
- Boosts your CPF retirement payouts in future years — especially through CPF LIFE
- Improves housing resale flexibility since refunding earlier may reduce the refund obligation upon property sale
Refunded funds are treated like regular CPF contributions and are protected, government-guaranteed, and interest-bearing.
Where Will the Refund Go?
The refund will be credited to different CPF accounts based on your age:
- Below 55 years: Refund goes into your Ordinary Account
- 55 years and above: Refund goes into your Retirement Account (after topping up the Full Retirement Sum), then the Ordinary Account
This ensures that funds are aligned with your stage in life — either supporting future housing, or strengthening your monthly retirement income.
How to Make a Voluntary Housing Refund
The refund process is simple, digital, and can be done entirely online through the CPF website.
Disbursement Timeline and Methods:
- Log in to CPF portal using Singpass
- Navigate to the “Housing” section and select “Make Voluntary Refund”
- Choose the amount you wish to return (partial or full)
- Select your bank account for deduction
- Confirm and submit your request
The refund will be processed within 3 to 5 working days, and CPF will send a notification upon successful crediting.
How You’ll Be Notified
After a successful refund, members will receive:
- SMS or email notification from CPF Board
- Updated balances reflected in the CPF mobile app and online dashboard
- Acknowledgment letter (optional) for recordkeeping
No Applications or Approvals Required
Since the refund is voluntary, no application forms or approvals are needed. You can initiate a refund anytime, for any amount, and as often as you like. There are also no penalties or fees, and refunds are not subject to tax.
This flexibility makes it easy for homeowners to make multiple smaller refunds over time instead of one large lump sum.
Why This Matters
- Encourages responsible and proactive retirement planning
- Allows homeowners to gradually rebuild what was withdrawn from CPF
- Takes advantage of CPF’s guaranteed interest rates (up to 6% p.a. for older members)
- Improves financial security without sacrificing liquidity
A Forward-Looking Policy for Smarter Retirement
The Voluntary Housing Refund is part of Singapore’s broader CPF reform efforts — aiming to build stronger retirement foundations while giving citizens the power to choose how they manage their savings.
It’s ideal for:
- Middle-aged workers looking to close their CPF retirement gap
- Homeowners who plan to downgrade or sell property in the future
- Adult children who wish to support their parents’ CPF accounts
By encouraging early refunds, the scheme also reduces the final amount homeowners must repay when they sell their home — providing more clarity and flexibility in future housing transitions.
Avoiding Scams and Misinformation
As always, CPF members are reminded to only access refund services through the official CPF portal. Be cautious of:
- Third-party agents offering to “process” refunds for a fee
- Phishing websites mimicking CPF
- Any request for personal banking details via WhatsApp or email
CPF does not send clickable refund links or request sensitive information through unofficial channels.
Keeping Your CPF Account Secure
To ensure smooth refunds and future transactions:
- Keep your Singpass login and mobile number up to date
- Review your CPF nomination status regularly
- Use the CPF mobile app to monitor your account activity and contributions
If you encounter any discrepancies, contact CPF Board directly through official customer service channels.
Final Thoughts: Turning Housing Into Retirement Strength
Singapore’s Voluntary Housing Refund 2025 empowers citizens to take charge of their retirement planning. Whether you’re preparing for retirement, selling your home, or simply want to maximize CPF interest benefits, this scheme offers a flexible, zero-risk opportunity to do so.
In a time where financial planning is more important than ever, VHR ensures that your CPF works harder for you — and helps pave the way toward a more secure, worry-free retirement.
Official Website
Visit https://www.cpf.gov.sg for more information, step-by-step guides, and to make your refund online.
Frequently Asked Questions (FAQs)
Q1: Who is eligible for the Voluntary Housing Refund in 2025?
A: Any CPF member who has used CPF funds for housing and is not under legal restrictions or bankruptcy.
Q2: Is there a minimum amount required to make a refund?
A: No. You can refund any amount — partial or full — at any time.
Q3: Where does the refund go in my CPF account?
A: It goes into your Ordinary Account (below age 55) or Retirement Account (if 55 and above, subject to limits).
Q4: Are refunds taxed or penalized?
A: No. Voluntary refunds are non-taxable and free of penalties.