Friday, January 5, 2018

CPF - Should you or should you not

Hi everyone!

Once again, the period of getting interest from cpf is here. Not everyone is excited but I am cause I am looking to every single ways to make my money working for me and getting interest/dividends are one of the ways!

So you might ask, do I even top up my cpf and if yes, how much do I top up every year? Personally I don't do any top up cause I don't have much savings to put in cpf especially I need more cash flow in the future (for my family). However, once I have extra savings, I might put some in cpf and the rest in other instruments.

Some people might asked, cpf money, you will not be able to withdraw until 55 years old. It's like can see but cannot touch, is it that worth it? Some people might see cpf as a liability as part of their salary are credited to cpf and they are unable to touch it. For me, I treat cpf as a long term saving program (especially for SA account) as it helps me to save and also earn quite a good amount of interest.

How about transferring OA to SA? Is it a good choice? Firstly, there isn't a fixed answer for this as there are pros and cons in transferring OA to SA. Let's say you are still young and want to build your family in the near future like buy a house and etc, I would suggest not to transfer your OA to SA yet until you have sufficient funds for it. The reason is because transferring from OA to SA is an irreversible move, once you transfer to SA, you won't be able to transfer it back to OA. So settle your big item first that requires your OA funds. After which, you can slowly consider how much to transfer in order to earn the attractive interest of 4% (extra 1% for the first 60k)

Will JYKL be doing the transfer? Yes, I will be doing it soon as I want to earn more interest in my cpf account by putting it more in SA cause the earlier you do, the more interest you will be able to get (compound interest effect). However do think carefully as you might need to use your OA for other stuff.

Thanks for reading!


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  3. Actually is 5% SA if u have total of 60 in your cpf account.

    1. Hi Andrew,

      The extra 1% is for amount up to 60k right? Thanks for the info, I will update in my blog.