CPF Ultimate Guide: Special Account (CPF SA)

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CPF Ultimate Guide: Special Account (CPF SA)
Welcome to the 3-part CPF series! This episode focuses on the Special Account (SA), covering its features, strategies, and updates.

1. About the Special Account
* Dedicated to long-term retirement savings. Limited usage.
* Interest rate:
* 12-month average yield of 10-year Singapore Government Securities (10YSGS) + 1%.
* Minimum 4% p.a. (Upsized to 4.14% p.a. from Oct-Dec 2024).
* Additional interest: 1%-2% on balances below $60,000.
* Allocation for those aged 35 & below:
* 6% of CPF contribution. E.g., $3000 salary = $180 to SA.

2. Investment Options
* Balances above $40,000 can be invested via CPFIS.
* Ensure returns exceed SA’s maximum interest (5% p.a.).

3. Full Retirement Sum (FRS)
* FRS represents how much one needs for retirement.
* Confirmed until 2027: $228,200.

4. How to Increase SA (Supercharge to FRS)
* RSTU Top-up: Up to $8,000/year for tax relief.
* OA-to-SA Transfer: Build SA faster, but irreversible.
* VCMA Contributions: Boost SA after reaching the Basic Healthcare Sum (BHS).

2025: Special Account Closure
* SA closes for members aged 55+. Balances transferred to Retirement Account (RA) and Ordinary Account (OA).
* CPF SA Shielding will no longer apply.

FAQs on CPF SA:
* Contributions above FRS? Go to SA.
* Can I RSTU after hitting FRS? No.
* Contributions when SA and MA caps are hit? MA flows to OA.

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[iliveunknown]

FRS+1. This is an informative video. Thanks for the confirmation that MA will flow to OA once hit BHS and FRS.

[dotnetcoder]

Why need top MA first? MA and SA interest different ?

[herochan]

FRS+1. Can you also help to enlighten about monthly contributions after 55 if FRS is met?

[MARIEAna-srpt]

they are best calculator of the world ..hahaha

[lichlich]

Remember that you mentioned in an older video that excess mandatory contributions to the SA after reaching FRS will overflow to the OA, assuming MA is at BHA. But in this video you said contributions to SA will still go to SA. Did this change?

[maleman]

SA account closing in 2025 for those above 55 and amounts above FRS will flow to OA. Already getting calls from financial institutions to target our excess SA funds flowing to OA. They say they can give returns above FRS. We may see people getting 'conned' by these so-called projections of 4% to 8%?

[choymaymay]

Does it make sense to top up my daughter’s Medisave, so I can help her to hit BHS as soon as possible.

[kevinsimmail]

Thanks for sharing your video, I'm currently age 45, hope you could guide me how to super charge my SA and avoid tax

[asisatan]

please share all excel as free here thanks

[joellim]

Guys, the number of rule and regulations imposed on CPF is basically like the government not trusting you with your own money and not giving you your own money. Even if you guys come out with whatever SA shielding strategy, the government can still close down the entire SA account. Personally I feel the only way is to vote out the PAP to ensure that you can really decide what to do with your CPF money.