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CPF (Central Provident Fund) All about OA, SA, MA and RA, and strategies to optimize your CPF




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Topic Review (Newest First)
18-02-2024 12:09 AM
Salary.sg Shielding can't be done after 2024. See CPF changes:
https://forums.salary.sg/cpf-central...em-2024-a.html
10-06-2022 05:41 PM
Unregistered
Quote:
Originally Posted by Unregistered View Post
Has anyone purchase T-Bills using SA for CPF shielding.

I called up my CPFIS bank (UOB) and they said it is not managed thru them.

I searched CPF website but T-bills is not listed -> s://.cpf.gov.sg/member/growing-your-savings/earning-higher-returns/investing-your-cpf-savings

Thanks
It seems quite clear that CPFIS-SA can be used to buy SG treasury bills:
s://.mas.gov.sg/bonds-and-bills/investing-in-singapore-government-securities/Buy-SGS-at-Auction-Information-for-Individuals

However, the instructions on how to apply isn’t that clear to me. Maybe you can check with the “agent banks” as mentioned in the above link?
10-06-2022 05:35 PM
Unregistered One point not mentioned in this thread is that after reaching retirement age, you can withdraw from OA and SA any time (subject to some rules), but you can’t withdraw from RA account. Hence, to the person who asked why not transfer from OA to RA to earn a higher interest, the answer is that if you have more than FRS amount in SA before age 55, it’s best to “shield” some money so that there’s more money in SA (earning higher interest) than in OA even though you can withdraw from both OA and SA.
12-01-2022 10:42 AM
Unregistered Has anyone purchase T-Bills using SA for CPF shielding.

I called up my CPFIS bank (UOB) and they said it is not managed thru them.

I searched CPF website but T-bills is not listed -> s://.cpf.gov.sg/member/growing-your-savings/earning-higher-returns/investing-your-cpf-savings

Thanks
10-01-2022 10:48 AM
Salary.sg
Quote:
Originally Posted by Unregistered View Post
Can't you just transfer from OA to SA after you turn 55?
After 55, no.

See:
https://www.cpf.gov.sg/member/faq/gr...s-to-my-specia

"No, you will not be able to make CPF transfers to your Special Account (SA) after you turn 55. The Retirement Account (RA) was created for your retirement needs when you turned 55. Hence, top-ups to boost payouts will have to be made to the RA instead of SA."
10-01-2022 10:27 AM
Unregistered
Quote:
Originally Posted by Salary.sg View Post
Suppose you have:
OA 151k
SA 151k

Without shielding, after you turn 55, you will have:
OA 121k <-- 2.5%
SA 0k
RA 181k

With shielding (after T-Bills mature):
OA 10k
SA 111k <-- 4%
RA 40k+141k

The difference is that you will have 111k earning 1.5% more.
Can't you just transfer from OA to SA after you turn 55?
10-01-2022 01:59 AM
Salary.sg Good article with details on the CPF shielding "hack":

https://dollarsandsense.sg/cpf-shiel...inary-account/
17-04-2021 07:34 PM
Salary.sg Check out this asiaone article on the same topic.

Before you turn 55 years old:

Step one: Calculate how much you need to transfer out of your CPF SA, in order to keep just $40,000 in the account

Step two: Transfer that amount of money out of your CPF SA by investing the money in a low risk investment product (more on this in the section below)

Note, you’ll need to be able to invest under the CPFIS before you can do this.

After you turn 55 years old:

Step three: Wait and check for your CPF RA to be formed

Step four: Cash out by selling your investments

Step five: Transfer the money back into your CPF SA

Step six (optional): Consider topping up your CPF RA up to the Enhanced Retirement Sum (ERS) to enjoy higher monthly payouts during your retirement
21-02-2021 03:15 PM
Salary.sg This youtube video explains the CPF Shielding strategy very well:

https://youtu.be/i2n4l5UyfPw
28-01-2021 12:07 AM
Salary.sg
Quote:
Originally Posted by Unregistered View Post
RA interest rate also 4%
Suppose you have:
OA 151k
SA 151k

Without shielding, after you turn 55, you will have:
OA 121k <-- 2.5%
SA 0k
RA 181k

With shielding (after T-Bills mature):
OA 10k
SA 111k <-- 4%
RA 40k+141k

The difference is that you will have 111k earning 1.5% more.
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