Hi, when i turn 55 yrd old . How much of the OA and how much of SA will go the FRS if have surplus of both combine together?

Hi anon,

I'm not going to bring the SA shielding trick into discussion here, which has been mentioned below.

CPF board will first deduct monies from your SA until you meet the FRS.

If this is insufficient, they will continue to deduct from OA until FRS is met.

However, $5K of your CPF will always be available for withdrawal when you reach 55, so there will always be at least $5K left in your OA and SA account regardless of the situation.

The priority is to deduct as much from SA first before deducting from OA.

Yang Teng talked about SA shielding, which the concept is to take the SA monies to invest in some approved investment, so that the SA balance is low or zero (because they are in the investment), and CPF will try to deduct the money for FRS from OA instead. When you unwind or sell the investment, then the money is returned to SA so you have a 4% fixed deposit.

There is a rule that Elijah spoke of, and I went to confirm.... Any withdrawal of excess / surplus monies from OA or SA after you turn 55 must be first withdrawn from the SA.

You have to keep that rule in mind if you choose to do SA shielding.

I thought about it, and concluded I probably won't put in the effort for SA shielding, because buying the investment will incur fees, you might not get as good a return as 4% while keeping it in the SA shield, and the fees and costs of winding / unwinding the SA shield will likely result in lower interest anyway. Seems like it might not be worth the effort. Maybe I will have 2nd thoughts when I turn 55 lol.

I would focus on reaching the FRS as soon as possible, and try not to touch the amount in OA or SA for as long as possible (since I have srs too... So if I am self sufficient between 55 to 62, I will try to spend from my cash and let the cpf grow)