CPF interest coming tonight

[KnyghtRyder]

Say you have 1M in you OA at 55, come 1st Jan 56, pre notifying CPF, you transfer 25k to your savings account and use it for monthly expenses at rate of 2k a month

When your BRS kicks in at 65, you get an additional 1k a month total 3k, correcting for inflation, with smallest forfeiture of your principal to the CPF life common pool

Why must pre notify.. if you want money from your OA and you are above 55 just initiate the withdrawal. Instant cash.

 

[orwell76]

Why must pre notify.. if you want money from your OA and you are above 55 just initiate the withdrawal. Instant cash.

Large sums need to notify

 

[KnyghtRyder]

My MA interest goes to OA directly for 1 Jan 2026 too, and not yet hit FRS.

I check last year for my 1 Jan 2025, the MA interest went to SA.

There's a change or a cok up

2025 Jan Interest transferred to SA

2026 Jan Interest transferred to OA. I haven't hit FRS yet, as you can see i could still top up

Your SA already past FRS that's why.

 

[compro_1975]

yes i calcuated using my own account. One annoying thing about CPF is that they don't have monthly statements but only transactions so I had to work backwards. The saving grace is that there were not many transactions to SA

How much differences is urs compared to given?

 

[Mephist0pheLes]

most edmwers sld have worked for 10, 20, 30 years alr, but many still dunno the most basic things about CPF lol

 

[seowbin]

If MA and SA hit max, I can look forward all the contribution to be in OA finally ?

 

[dev_stg_prd]

How old are you?

Your SA is above FRS.

If below 55 years old, does it mean that salary that comes in, and already hit FRS, it can go above FRS and not sent to OA?

Below 55 is BAU la

 

[testerjp]

Your SA already past FRS that's why.

Not yet, u see i could still top up $5242.72 into my SA after the interest came in.

Anyway, also good, means i can top up more.

 

[Bam25th]

My MA interest goes to OA directly for 1 Jan 2026 too, and not yet hit FRS.

I check last year for my 1 Jan 2025, the MA interest went to SA.

There's a change or a cok up

2025 Jan Interest transferred to SA

2026 Jan Interest transferred to OA. I haven't hit FRS yet, as you can see i could still top up

Cause your SA already exceeded 2025‘s FRS of $213k. When they calculate where to flow to for the interest, it is always based on the year the interest was earned, so in this case, 2025

 

[KnyghtRyder]

Large sums need to notify

Maximum daily withdrawal limit is 50k. You withdrawing less than that don't need to pre notify.. but you do need to apply to change the daily withdrawal limit from the default first. Current default is 2k

 

[KnyghtRyder]

If MA and SA hit max, I can look forward all the contribution to be in OA finally ?

SA got no max.

 

[compro_1975]

How old are you?

Your SA is above FRS.

If below 55 years old, does it mean that salary that comes in, and already hit FRS, it can go above FRS and not sent to OA?

Nope sa part still go into sa

 

[dry_county]

exactly. i've always wanted to invest my OA funds since i started working. i only managed to start investing my OA funds 3 years ago after hitting >20k.

since then, i've invested my incoming OA funds into a global equity index in Endowus. the annualized returns so far i just checked is 19% for the past 3 years.

i'm fully cognizant that this annual 19% returns in the current bull market is not sustainable, and there is a significant likelihood of a pullback in the coming years. but still, i'm still invested in the market because i think an average annual return of 8-10% is still very reasonable for the next 20 or 30 years, which far far outpaces 2.5% or even 4% provided by CPF. i'm used to the volatility.

that's why i don't really understand why there so many here rushing to top up their CPF. just for a few hundred dollars of tax savings, you're locking up your money which is subjected to changing rules and gives a sub-optimal 4% return over the long term. worse still, there are so many who already reached FRS, rush to top MA at the start of the year, overflow to OA then leave their OA idle at 2.5%.

i think this really reflects the general risk aversion of sinkies, especially the older generation. must bao jiak, must min-max, must wait for the bottom. in the end kena analysis paralysis and nothing is done, just get the lowest guaranteed returns.

Good point kor kor. I dunno why i always never touch my CPF for investments. Last time my rationale is that i might need the OA to buy another property which never materialize. Now, i treat CPF as my bond investments in my overall portfolio. But 2.5% interest is really low. I should take more risk and start investing my OA.

 

[seowbin]

SA got no max.

Ahhh... ****

Just that cannot cash top up only ?

 

[caelitus]

This thread is really good. It will convince the naysayers to start compounding for their basic retirement in CPF earlier.

I remember in the past we had convertees who were convinced by CPF especially the closer they got to 55 years old.

 

[compro_1975]

Maximum daily withdrawal limit is 50k. You withdrawing less than that don't need to pre notify.. but you do need to apply to change the daily withdrawal limit from the default first. Current default is 2k

Withdraw can put back?

 

[KnyghtRyder]

Not yet, u see i could still top up $5242.72 into my SA after the interest came in.

Anyway, also good, means i can top up more.

Then I also don't know.

 

[highsulphur]

Large sums need to notify

How much is consider large

 

[tmkedmw]

Large sums need to notify

Withdraw up to your limit by visiting cpf service centres.
Online has a daily cap of 50k max.

 

[KnyghtRyder]

Ahhh... ****

Just that cannot cash top up only ?

Yes correct.