Blog

THE Central Provident Fund (CPF) Special Account (SA) was closed on Jan 19 for about 1.4 million CPF members, nearly a year after the closure was announced in Budget 2024.

Over the past month, as Singaporeans above 55 years old prepare for this eventuality, I received many questions about what one should do with their CPF money, which will be transferred to their Ordinary Account (OA) from their SA.

At the same time, I have noticed financial institutions and their representatives encouraging CPF members to invest their OA money to get “better returns”. I hope to provide some clarity on what you should do with your hard-earned CPF money.

When CPF members turn 55, the amount up to the Full Retirement Sum (FRS) will be transferred to their Retirement Account (RA) from their SA first. If insufficient, the remaining shortfall will be funded by their OA funds.

Previously, if there was still excess money in their SA and OA after fulfilling the FRS, members could withdraw it any time they wanted, or leave it in the accounts to earn at least 4 or 2.5 per cent a year, respectively.