Did you know that pledging your property could unlock thousands from your CPF Retirement Account (RA) without giving up your home ownership? Sounds great, right? But it’s not all sunshine – there are trade-offs you need to understand before diving in. In this post, you’ll learn:

• What property pledging is and how it works.
• The benefits it offers, like larger CPF withdrawals and financial flexibility.
• The potential downsides, including lower CPF LIFE payouts and long-term costs.
• Whether investing your withdrawn funds is worth it.

Curious? Let’s get started. What is property pledging? Property pledging refers to using your property as collateral to meet specific financial or legal obligations, all while retaining ownership and control of the property. Within Singapore’s financial landscape, it’s most commonly associated with the Central Provident Fund (CPF) framework. If you’ve been wondering how to meet the Full Retirement Sum (FRS) or Basic Retirement Sum (BRS) without parting with large amounts of cash, property pledging offers a practical solution....