What are the things Singaporeans should take note that would prevent them from taking out the expected amount of money from CPF?

This should prevent anyone from taking out their CPF at all for property. I answered a similar question, Copy paste here :Start with not withdrawing from your CPF for your housing and you should have enough to retire comfortably.Which means when you buy a house, use only cash. If you need a home loan, use cash to service the loan. If possible, use cash for the downpayment particularly.Why? Having to pay accrued interest to CPF.Let’s do a calculation. Suppose you buy a new HDB BTO 5-room.Purchase Price = $375,000, Downpayment 20% = $2,000 (by Cash), $73,000 (by CPF), Bank Loan 80 %, mortgage i/r : 2.0 % p.a., Loan Tenure : 30 years.Principal sum loaned : $300,000Mortgage instalments : $1,109 / monthAfter 30 years your total paid to bank : $399,198Of which bank Interest paid up : $99,198Lets calculate the CPF Accrued interest : 2.5% p.a. APR. Interest is charged on what you are supposed to have in your CPF, but do not have (due to withdrawal for housing payment).Total Accrued Interest payable : $284,166.How?(I) Downpayment for house in CPF : $73,000,therefore Accrued interest is $81,420.(II) Monthly mortgage loan instalments serviced with CPF : $1,109therefore Accrued interest is $202,746Accrued Interest payable : $81,420 + $202,746 = $284,166.From your own pocket.See the workings: Monthly looks like this: Yearly looks like this : Is it possible to not pay the accrued interest? Yes.As it is only paid upon your sale of the house, so only upon every sale, will you have to pay the accrued interest up to that point. Once you buy another house, it starts again. If you stay forever in your 1st home, you won't have to pay accrued interest but you won't get to earn CPF interest as well, at least on that amount withdrawn to service the bank every month, until you have paid in full your home.The common argument, which is a misconception, is accrued interest goes back to your own CPF account ultimately, and thus still yours to keep, so that's fine.But that's not true.It makes a difference (a big difference in fact considering that figure above) where that ‘extra money’ in your CPF account comes from. Is it money earned through an external source, ie. CPF paid out, or is it money from you, ie. just your left pocket paying your right pocket?Hence the reason why the profits from selling your home (if profitable) amounts to lesser than you had originally thought it would be. Accrued interest goes back to CPF before cash from sales proceeds. Whatever is the accrued interest figure you’ll notice upon the sale of your home, is really your liquid cash on hand converted into less liquid CPF.Now if you want to have enough to retire, you should start with knowing how to manage your CPF account in terms of your housing.The following are the options of which the most preferred comes first:Option 1: Pay for your home in full cashPay nothing else.Earn compounding interest on every cent contributed to CPF.Upon Sale : Keep every cent from the sales proceeds, which can be pretty substantial since new HDB flats are priced 30% below resale prices / market valuation.Example, PP $375k, after 5 years, Resale Price $500k, you’ll pocket $125k.Option 2 : Pay downpayment in Cash; Take housing loan and pay monthly HL instalments in Cash.Pay HL interest.Earn compounding interest on every cent contributed to CPF.Upon Sale : Keep every cent less HL interest.Option 3 : Pay downpayment in Cash; Take housing loan and pay monthly HL instalments with CPF.Pay HL interestPay Accrued interest on monthly CPF withdrawn to pay HL instalmentsEarn compounding interest on every cent contributed to CPF less amount withdrawn to pay monthly HL instalments.Upon Sale : Keep every cent less HL interest, less accrued interest on monthly. - You might still earn something.Option 4 : Pay downpayment in CPF; Take housing loan, pay monthly HL instalments with CPF.Pay HL interestPay Accrued interest on monthly CPF withdrawalPay Accrued interest on downpayment from CPFEarn compounding interest on every cent contributed to CPF less amount withdrawn to pay monthly HL instalments and downpayment of home. - Although usually there's nothing left because CPF is wiped out.Upon Sale : Keep every cent less HL interest, less accrued interest on monthly instalments, and downpayment. Likely not much left to pocket.Unfortunately, Option 4 is the one taken up by most of the households today, in part because financial advisors tend to encourage using CPF to pay due to the basic premise that CPF earns 2.5% and HL interest to pay is 2.6% or less, so it cancels out each other - obviously on closer inspection you know it's not true, which brings us to another question, why are they lying? Are they doing it on purpose? Or that they are truly ignorant?On top of that there is the perception that there’s nothing much that you can do with your CPF until retirement, which seems really far away, so it doesn't feel like money. Besides paying monthly instalments in cash leaves a pretty miserable amount to spend and most households will be unable to afford other necessities, which takes away Option 1 and 2 as feasible ones.Well, on the bright side, as a S’porean, you get to enjoy low crime rate; clean streets and less-polluted air; good, clean and cheap food; *1. good health care; *2. efficiency in processes…etc etc etc. You win some, you lose some so there's no need to overthrow the regime or demand for change (it won't happen don't waste your time, just focus on the pretty).*1. although expensive imo, for maternity bills,*2. in automated matters, not when it takes a deviation from the norm, of which it stallsssss….Disclaimer, the above is what I know to be true from my own analysis, at the date of posting. It may however not represent the entirety or I might have been mistaken (of which I will be grateful if someone can point it out to me). Please do your due diligence.Edit: I previously did a wrong calculation by putting $1,109 as an annual contribution. I've since changed it to a monthly contribution and changed the attached calculations to reflect the right figure.Updated 23m ago •