facebookMany seem to recommend transferring money from CPF OA to SA for higher interest rates, what kind of people should do that? - Seedly



21 Dec 2019


Many seem to recommend transferring money from CPF OA to SA for higher interest rates, what kind of people should do that?

I am still young and just started working, have not bought a house or anything yet. Can I move the money back from SA to OA if I need to use it?

Discussion (25)

What are your thoughts?

Been doing transfer and top up since 29 . by 34 i am done . dont need to worry about the ever increasing minimum sums anymore since the interest from sa will more than cover 5k increase yearly .

in 20 yrs time , with interest and further work contributions , it will probably compound to about 800k .

by 65 , i can get more than 3k estimated from cpf life ( inflation adjusted)

why is there a need to think so much about liquidity and what not ? just get it done to the maximum and over with it . once its maxed out , your retirement is at least 70% secured ( 3 meals a day and a few simple holidays )


View 3 replies

Kenneth Lou

Kenneth Lou

05 Dec 2019

Level 14·Co-founder at Seedly

This is indeed one of the biggest 'hacks' and 'recommendations in today's working adult world to contribute and top up your CPF SA for higher interest rates. TL;DR: It’s all about 2.5% vs 4.0%

Essentially this act of topping up the SA account is about your retirement funds and allowing it to compound at a faster rate of 4% to 5% p.a risk-free rate.

By doing this action:

  • It locks up your money with the CPF Special Account till age 55
  • You are unable to use this money for property, education or CPF approved investments (normally from your OA)

WARNING: You cannot reverse this action and take out the funds!

Thus by going by the above illustration, the people who should do that are people who:

  • Are willing to lock up their funds till 55 years old
  • Are likely single and plan to stay single (with no kids for education)
  • Do not plan to buy any property using your CPF OA (housing)

Hope this helps :)

You can read more about this topic in a blog post I wrote some time back also: https://blog.seedly.sg/should-you-transfer-cpf-...

View 1 replies

Hello! My wife and I are able to sustain our loans by cash, so we decided to leave a maximum of $20k...

Read 23 other comments with a Seedly account

You will also enjoy exclusive benefits and get access to members only features.

Continue with Facebook
Sign in with Apple

Sign up or login with an email here

Write your thoughts