Anonymous

22 Oct 2019

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Is there a percentage of my income that I can voluntary contribute to my OA & SA to fund for housing?

I read the article on self-employed individuals' CPF contribution but still unsure about how much I should contribute voluntarily. My MediSave is settled by my company, however, I still need funds to pay for an HDB in the near future. I'm self-employed, earning on average about 3-4k a month.

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Elijah Lee

22 Oct 2019

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

If your MediSave liabilities are settled by your company, then you technically don't need to make any more contributions.

However, it is a good idea to contribute to your CPF to build your funds for OA, SA and MA. Unfortunately, you can only either direct your contribution to MA, SA or all 3 accounts. It is not possible to contribute only to OA.

How much you wish to contribute should be based on your affordability. While you must remain prudent and keep a sum of money aside as emergency funds, you are actually free to contribute any amount you wish to all 3 accounts, up to the annual limit. So, if you prefer a risk free way to grow funds for both your HDB and prepare for retirement, you can contribute say, 20%, to be on par with employed workers.

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To pay housing loan in cash to save CPF OA? Or to pay with CPF OA and do voluntary contribution later? Since they will spread to MA and SA with more interest?

Should I a) use my CPF OA funds to invest in Endowus or b) transfer my OA balance into SA to earn 4% interest? (Assume house is already bought and no other use for OA funds)?

CPF member age 55 (RA @ ERS)(MA @ BHS) Shielding SA may lead to 86.54% (Age 55-59) of contribution allocate to OA, locked-in & behind SA. Are there any useful options to manage the lock-in fund in OA?

For RSS, how are the contributions like? Does the RSS takes 100% of money in SA to fill the RA before taking money from OA or is there a fixed percentage of contribution from each account?

Is it a good move to save spare cash thru (1) first making voluntary housing refund to CPF OA, then (2) transferring the sum from OA to SA?