CPF Special Account closure: What is the impact?

When the SA is closed, savings in that account will be transferred to the Retirement Account (RA), up to the Full Retirement Sum (FRS).

Any remaining SA funds will then be channelled to the Ordinary Account (OA).

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#straitstimes #cpf #retirement #sgbudget2024

[lookloke]

Simply, “ if you cannot convince, you confuse the people ! “.

[melwu]

Wow sounds so confused cant they simply it to make it more easier to understand for older people to make it more clearly for working people

[benlim]

you gonna need a PHD degree to fully comprehend the CPF system

[huggybear]

For years (and even now) l still have no idea what the special account is for.

[janiceleong]

I don't agree that SA will only benefit the rich. It also helps the lower income that has less power to top up their SA during their working life before age 55, a good chance to grow their emergency fund (after finally paying off their home loans).Now with SA closure, they are actually earning lesser intetest as CPF funds channel to OA if they continue to work.

[alijandroamin]

So mean if we reach 55yrs old and not meet the ERF we cannot withdraw $5000 is it. Please explain more details is it we can withdraw $5000 or no . Thank you.

[tanyongboo]

If I sell my house at age 55, I need to refund back the principal amount+accrued interest.If I can reach the full FRS, so can I withdraw out the balanced from OA account is it include accrued interest.

[pokemonyu]

This video is about the 101 ways to confuse and distant you from you money. Period.

[LeeSkJohn-svwi]

The problem is do we continue to let them decide what to do with our money?

[kelvinpek]

Look at ABSD and COE, are these curbing the market from moving? NO, so who wins? The GOV

[alipromo]

Do not top up RA money cannot be liquidate

[YMWong-cbke]

If they want do anything, let them. Don't be annoyed by such thing. Anyway, most people will not have much money in their SA. Most of their money are in their OA. However, because most people use their OA to pay for their property, therefore most of them do not have much in their OA as well. Also for those with high income, their SA is also limited by Law; for example, this year the SA max sum is $205, 800. If they reach this limit, the rest of their CPF contribution will go to their OA. So, in practice, the number of people actually affected is very small.

[WilliamLionCity]

Ah, no more SA shielding before people even know what's shielding.

[sebastiantan]

Honestly, the government should grandfathered SA for those above 55 !

[karthiv]

Not clear.. May be some slide would have been better.

[royboon]

basically you frs full 200 plus lk you win already all oa take out

[martinmisty]

Think of it as a system that is primed for the public and private real estate market and therefore primed to generate financial reserves for the government who ironically is still rather tight-fisted in redistributing the returns from the reserves back to citizens.

[ocswoodlands]

4% - fair rate for non withdrawable balances
2.5% - fair rate for fully withdrawable balances

What is the fair rate then for balances that can only be withdrawn for housing and education? Logically should be somewhere between 2.5 and 4%?

[jamesong]

Just allow all these skill future to be used for university as there are a lot of smart people who cant afford for university even. All these skills future are a waste of time and money. Just allow people to have a choice to choose to use their skill future for their university or polytechnic or even jc and still be able to choose to use their skill future on other things if they still need.

[MarcoJr]

If you have seen how Teh Tarik is prepared, you will understand how CPF works.