CPF SA Shielding hack - RIP (Obsolete)

[athletic91]

https://www.cpf.gov.sg/members/FAQ/...avings+from+55&ajfaqid=2189289&folderid=12854

You cannot withdraw from CPF OA or SA if you have not set aside FRS. You should still be able to withdraw $5000 that everyone has the unconditional option to withdraw though

So with this shielding hack, the money In S.A after age 55 is higher interest than the RA account meh ?

I tot ppl shield so that can withdraw from SA at age 56 or 57

 

[tangent314]

Money in SA earns the same interest as money in RA.

No, the intention of shielding is not to withdraw money from the SA. The intention of shielding is to ensure that our RA is formed using money transferred from our OA instead of our SA, so that once the RA is formed with the FRS (ideally topping up to ERS), our excess CPF money will be in our SA instead of our OA. Whether want to withdraw from SA or not is up to the individual, but usually the point is to keep it in there for as long as possible to earn higher interest. It doesn't make sense to go through all the trouble just to keep money in the SA for only 1 or 2 years.

 

[celtosaxon]

Let’s say at age 55 after putting up SA shield there isn’t enough to form FRS in RA. Are you allowed to top up your RA to FRS in cash and preserve the shielded amount n SA?

 

[BBCWatcher]

Let’s say at age 55 after putting up SA shield there isn’t enough to form FRS in RA. Are you allowed to top up your RA to FRS in cash and preserve the shielded amount n SA?

Yes, you're certainly allowed to do that, and you're also allowed to top up your Retirement Account all the way to the Enhanced Retirement Sum.

 

[bluemondays]

It seems that there are very few options for CPF SA investments.
Fixed deposits are out.
Would be very grateful for any suggestions.

 

[WeiHan]

It seems that there are very few options for CPF SA investments.
Fixed deposits are out.
Would be very grateful for any suggestions.

Singapore government bonds.

 

[Thoreldan]

they definitely yield below 4%.

Shield is only gonna be there for a short while

 

[Jay9999]

any yielding UT with at least 4% dividend to intro?

 

[wuming79]

Hi, actually, if we did not shield and RA took all SA and we left with a lot in OA, can we not transfer OA to SA to earn that 4%?

 

[Tiger9119]

Hi, actually, if we did not shield and RA took all SA and we left with a lot in OA, can we not transfer OA to SA to earn that 4?

After 55, cannot transfer from OA to SA. Only can top up FRS to ERS. If can, what is the purpose of shielding SA?

 

[wuming79]

After 55, cannot transfer from OA to SA. Only can top up FRS to ERS. If can, what is the purpose of shielding SA?

yah, that's what I have been wondering....CPF site did not say cannot transfer, only say can top up. so just want to make sure. Thanks.

 

[Value.Matrix]

You obviously have not read the thread.

(1) RSTU after 55 only allows you to top up cash/OA to ERS into RA only.

(2) RSTU before 55 only allows you to top up cash/OA to FRS into SA only.

So you see the problem now? You cannot top up to SA even if you want to (except through VC3A through the cpf contribution, where only a small amount goes to SA, while the rest goes to MA/OA).

 

[maple96]

You obviously have not read the thread.

(1) RSTU after 55 only allows you to top up cash/OA to ERS into RA only.

(2) RSTU before 55 only allows you to top up cash/OA to FRS into SA only.

So you see the problem now? You cannot top up to SA even if you want to (except through VC3A through the cpf contribution, where only a small amount goes to SA, while the rest goes to MA/OA).

U read this thread but did not read CPFB website rules, so get your CPF Facts/Rules wrong?

Who can spot the wrong facts/rules?

 

[happylcw]

You obviously have not read the thread.

(1) RSTU after 55 only allows you to top up cash/OA to ERS into RA only.

(2) RSTU before 55 only allows you to top up cash/OA to FRS into SA only.

So you see the problem now? You cannot top up to SA even if you want to (except through VC3A through the cpf contribution, where only a small amount goes to SA, while the rest goes to MA/OA).

In this case, why dun we just transfer from OA to SA at age 54, isn't that easier than performing this shielding hack?

 

[giraffey]

In this case, why dun we just transfer from OA to SA at age 54, isn't that easier than performing this shielding hack?

The SA has a limit based on the FRS amount. Meaning to say, like BHS, when SA reaches the current FRS amount, the CPF contributions flow to OA.

 

[dork32]

In this case, why dun we just transfer from OA to SA at age 54, isn't that easier than performing this shielding hack?

i am in my late 40s and my sa is already 230k. i cannot transfer anymore to sa from now to 54.

also transferring oa to sa at 54 only helps for that 1 year if you go for frs

eg frs is 180k, and you have 100k oa and 100k sa at 54

case 1 you tranfer 80k to your sa at 54. so now you have oa 20k and sa 180k. at 55 your ra is formed so you have oa 20k, sa 0, ra 180k

case 2 you do not do anything. at 55, you ra is formed with your oa and sa. your final result is oa 20k, sa 0, ra 180k

the only difference is that you earn 1 more year of 4%

with shielding, at 55, you will have oa 0, sa 20k and ra 180k. this is the advantage of shielding. you convert your oa into sa.

 

[JF123456]

Say, OA = 50K, SA = 200K
FRS = 186K ( 55yrs @ 2021)

Before reaching 55yrs old, do 160K SA shielding.
@ 55yrs, OA =0, RA = 50K+40K =90K

Then I Cash Top up into RA = 96K, hence final RA = 186K .


In future, if I return back the SA shielding , then SA = 160K ( assume no loss/gain), can I withdraw any amt, as and when I need the $ ?

 

[celtosaxon]

Has anyone on this thread actually executed an SA shield maneuver? I know someone turning 55 this year and they expressed a lot of frustration about it. For example, if you try to use a T-bill you can’t be sure how many T-bills you will be awarded when you apply. He is considering just investing in something more simple, but relatively safe and liquid on the SGX like ES3 for just a few days until his birthday passes. Does anyone have any actual experience to share?

 

[reddevil0728]

Has anyone on this thread actually executed an SA shield maneuver? I know someone turning 55 this year and they expressed a lot of frustration about it. For example, if you try to use a T-bill you can’t be sure how many T-bills you will be awarded when you apply. He is considering just investing in something more simple, but relatively safe and liquid on the SGX like ES3 for just a few days until his birthday passes. Does anyone have any actual experience to share?

There are other safer options. Like some short duration bond.

 

[BBCWatcher]

There are other safer options. Like some short duration bond.

Specifically a Singapore dollar bond unit trust via a zero fee platform. While it’s theoretically possible to use a T-bill, mechanically it’s too difficult and expensive.