| ▲ | skrtskrt an hour ago | |
> The magnitude of the investment also probably makes it impractical for anyone but the very wealthy to retire before that starts paying out... But they can pull out for housing right? That's an enormous portion of most people's expenses. If I didn't have to worry about housing, I could be living large on less than half of my salary, I would certainly semi-retire at least. | ||
| ▲ | everforward an hour ago | parent [-] | |
Sort of. So far as I can tell, you can withdraw to buy housing but I don’t think you can pay rent out of it. The loans are also 75% max loan-to-value so I think until you can get 25% of the purchase price in your account you have to pay CPF and rent (or live with family). Also, not an economist, but I suspect the forced savings has a wildly inflationary effect on housing prices. You can’t do much else with the money until you retire, so I would guess the price of housing rises up to match the forced savings rate. | ||