facebookBut since we can transfer money from our OA to SA anytime we want, how does it differ from this method? - Seedly

Anonymous

13 Nov 2019

Retirement

But since we can transfer money from our OA to SA anytime we want, how does it differ from this method?

The idea that SA will grow more than OA after the FRS is set aside is true. But if I want the 4%, I can always transfer what's left in my OA to my SA, no?

Discussion (2)

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Elijah Lee

13 Nov 2019

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

Hope I'm understanding your question correctly.

OA to SA transfer is not allowed after 55. You can only transfer to RA. Thus the shielding 'trick' must be applied prior to 55 for maximum benefit.

Hariz Arthur Maloy

13 Nov 2019

Independent Financial Advisor at Promiseland Independent

I'm assuming this is a question on SA shielding.

Trannsfer from OA to SA after 55 is not allowed. Thus you want to make sure as little SA is used to form RA.

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