Why not put 1 million into CPF SA to earn 4% safely? - Seedly
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Daniel Ling

Asked on 16 Jan 2019

Why not put 1 million into CPF SA to earn 4% safely?

Apart from not being able to take it out before 65 years old.

Are there other conditions?

Is 4% really that easy to earn in a no risk back by Government comparable investment?


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The max you can top up to SA is via the RSTU scheme (Retirement Sup Top Up), which is up to the Full Retirement Sum for the year. In 2019, this is $176k. So if you have 56k now, you can only top up 120k. After SA is full you can only do a Variable Contribution of $37,740 which will be split to the 3 accounts, but since SA is full, it'll flow to OA. And if MA & SA is full, it can only go to OA as well.


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1 more comments

Daniel Ling
Daniel Ling

16 Jan 2019

Hi question. Does interest gain go beyond 172k in 2019? Or base on your explanation, interest beyond rstu will flow to oa?
Hariz Arthur Maloy
Hariz Arthur Maloy

16 Jan 2019

Interest stays in SA.
Leong Wen Fong
Leong Wen Fong, Community Lead at Seedly
Level 6. Master
Updated on 07 Jun 2019

About a month ago we had an AMA with Mr Loo, and he did address some of these concerns.

In summary, like what you said, the main promblem is that people want to enjoy the use of money NOW. Let's say I'm 25 years old. I definitely feel that I will need the money more ringht now, when I'm getting married, having kids, needing to buy a house, etc. Rather than when I'm 65, and all my kids (hopefully) can fend for themselves, and I'm just left with a bunch of cash to spare.

Other than that, some people are afraid the withdrwal age will increase, change in political parties will change how CPF will work... etc.

Edit: Sorry in addition to this, you can't top up 1 million straight because you can only top up a maximum of $7000 (cash) per year


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Leong Wen Fong
Leong Wen Fong

19 Jan 2019

Thanks Tat Tian! You're the expert hahaha
Loh Tat Tian
Loh Tat Tian

21 Jan 2019

No lah. 1M65 is the expert. I am just clarifying haha.
Mic Mc
Mic Mc
Level 3. Wonderkid
Updated on 02 Jul 2019

Correct me if I am wrong.

SA you can only top up to $200K? No?

1 comment

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Josh Ng
Josh Ng

02 Jul 2019

No. The cap for SA in 2019 is $176k, but subjected to change every year. So refer to the comments made above, the voluntary top up per year is $37k. You can top up $7k or thereabout every year and do it repeatedly until your SA hits the maximum threshold set by the government. In which case, you can't do voluntary cash top up to SA anymore.