CPF Account Value Thread 2025

[chiokcc]

 

[highsulphur]

Coincidentally I just watched it on YouTube earlier

 

[chiokcc]

Yar, one more "hack" that can be considered .....

 

[henrylbh]

actually many in their mid 30s already have SA + OA = $400k liao

Don't say many. Not easy for many or how many person, age 25 starts off working with cpf annual contribution limit of which 21% goes to MA and 24% when he reaches 35 when graduates are lamenting on their starting salary in the press. Who gets 5 months' bonus every year and hits the annual contribution limit.

 

[hwmook]

Don't say many. Not easy for many or how many person, age 25 starts off working with cpf annual contribution limit of which 21% goes to MA and 24% when he reaches 35 when graduates are lamenting on their starting salary in the press. Who gets 5 months' bonus every year and hits the annual contribution limit.

I am sure at least 80% of the people does not have 400k in CPF by 35. Just take median salary x 12 years already can tell it's impossible to have 400k in CPF with 12 years of work. You get max 30k a year in OA/SA, how to get 400k by mid 30s for MANY? That is considering you get 7k salary and 3 months bonus from the first day you start work. I only got 600k in my OA/SA after 18 years of work, must be a real elite for somebody to get 400k in OA/SA after 12 years of work.

 

[tehhalia]

if many no need downpay / installment for housing, and OA transfer to SA, then many maybe
if not, i guess it's some ,not many

 

[royalmix]

https://dollarsandsense.sg/much-cpf-savings-every-age-group/

 

[DevilPlate]

I am sure at least 80% of the people does not have 400k in CPF by 35. Just take median salary x 12 years already can tell it's impossible to have 400k in CPF with 12 years of work. You get max 30k a year in OA/SA, how to get 400k by mid 30s for MANY? That is considering you get 7k salary and 3 months bonus from the first day you start work. I only got 600k in my OA/SA after 18 years of work, must be a real elite for somebody to get 400k in OA/SA after 12 years of work.

Edmw standard 20k per mth

 

[BBCWatcher]

Who gets 5 months' bonus every year and hits the annual contribution limit.

That old rule started changing on September 1, 2023, when the ordinary wage (OW) ceiling started increasing from $6,000. Currently the OW ceiling is $7,400; therefore less than 2 months' worth of variable pay could get you to the CPF Annual Limit. Starting on January 1, 2026, the OW ceiling will rise to $8,000, and consequently variable pay equivalent to as little as ¾ of one month could get you to the CPF Annual Limit.

I am sure at least 80% of the people does not have 400k in CPF by 35. Just take median salary x 12 years already can tell it's impossible to have 400k in CPF with 12 years of work.

At median wages, true.

You get max 30k a year in OA/SA, how to get 400k by mid 30s for MANY? That is considering you get 7k salary and 3 months bonus from the first day you start work. I only got 600k in my OA/SA after 18 years of work, must be a real elite for somebody to get 400k in OA/SA after 12 years of work.

The Basic Healthcare Sum is currently $75,500, so let's look at how long it'd take to get to $475,500 ($400,000+$75,500). An individual who's paid $102,000 or more per year typically hits the CPF Annual Limit of $37,740. Add $8,000 per year for tax relief (probably tossed into MA, then SA, then MA), let's suppose, so the yearly inflow adds up to $45,740 — less when MA and SA are "full." Add interest, including bonus interest. And OA to SA transfers to boost interest. Put together, $475,500 is achievable in about 10 years assuming only small deductions (for CareShield Life from age 30, for example).

Obviously that's not most people, but it is some people.

 

[weng0202]

Does anyone know whether the 35% limit for CPF OA investment in sg stocks still apply after we turn 55 and above?

 

[ericcsn]

Does anyone know whether the 35% limit for CPF OA investment in sg stocks still apply after we turn 55 and above?

yes.

 

[weng0202]

yes.

Hmmm, so even if reach FRS still cannot use all the money to buy sg stocks. So restrictive. Must withdraw all and invest as cash instead.

 

[BBCWatcher]

Hmmm, so even if reach FRS still cannot use all the money to buy sg stocks. So restrictive. Must withdraw all and invest as cash instead.

You can use all OA dollars above S$20,000 to buy SGX-listed stocks. There's no sublimit on ES3 or G3B, the Straits Times Index stock funds. And those funds themselves are listed on the SGX.

 

[Shion]

For this year, my CPF is purely from salary. No other avenues.

 

[elvintay07]

Don't say many. Not easy for many or how many person, age 25 starts off working with cpf annual contribution limit of which 21% goes to MA and 24% when he reaches 35 when graduates are lamenting on their starting salary in the press. Who gets 5 months' bonus every year and hits the annual contribution limit.

I think I shared about a few of my friends in their 30s. 1 pax 1 year $240k per annum and all max out. The ‘cui’ ones are doing like $150k. This is just tip of the ice berg. Don’t compare those $500k ones or those boss’s son/daughter la. That type $1m also got. lol

 

[elvintay07]

You say like that means never listen to Mr Loo. Many times quite easy to hit multi millions if you invest correctly.

if you ask me why, I would say most ppl don’t invest their OA hence doesn’t clock sufficient returns

That old rule started changing on September 1, 2023, when the ordinary wage (OW) ceiling started increasing from $6,000. Currently the OW ceiling is $7,400; therefore less than 2 months' worth of variable pay could get you to the CPF Annual Limit. Starting on January 1, 2026, the OW ceiling will rise to $8,000, and consequently variable pay equivalent to as little as ¾ of one month could get you to the CPF Annual Limit.

At median wages, true.

The Basic Healthcare Sum is currently $75,500, so let's look at how long it'd take to get to $475,500 ($400,000+$75,500). An individual who's paid $102,000 or more per year typically hits the CPF Annual Limit of $37,740. Add $8,000 per year for tax relief (probably tossed into MA, then SA, then MA), let's suppose, so the yearly inflow adds up to $45,740 — less when MA and SA are "full." Add interest, including bonus interest. And OA to SA transfers to boost interest. Put together, $475,500 is achievable in about 10 years assuming only small deductions (for CareShield Life from age 30, for example).

Obviously that's not most people, but it is some people.

 

[BBCWatcher]

You say like that means never listen to Mr Loo. Many times quite easy to hit multi millions if you invest correctly.

Some perspective is in order. Most people aren’t hitting the CPF Annual Limit every year or most years during their working careers. Although there seem to be a lot of people spending lots of money on stupid stuff. Don’t buy cigarettes, for example.

Generally, if you have the happy problem of high CPF savings, I’d max out the “sure bet” first (4.0%+ in MA, SA, and RA). Nail down your baseline age 55/65+ future, basically. Maxing out includes transferring OA dollars to family members’ SA/RA — cross-spousal transfers, for example. Then, if those pathways, plus reasonable housing expenses, still aren’t enough to soak up your OA dollars, prudently invest “surplus” OA dollars. (From 55 onward you could withdraw OA dollars to invest in a wider variety of lower cost ways, and without needing to keep S$20,000 in OA. But you’d weigh those advantages against the option value of liquidating investments to obtain 2.5% interest and to pull back into an asset protection mode.)

Tax relief is also often available in addition to the 4.0%+ interest. The tax relief sweetens the deal. SRS is available if you want even more tax relief.

if you ask me why, I would say most ppl don’t invest their OA hence doesn’t clock sufficient returns

2.5% is not a great rate from age 25 to 55, for example. But it’s easy to fix that. See above.

This problem isn’t really tied only to OA and CPF. How many people think long-term ”investing” involves spending decades amassing a portfolio of fixed deposits, SSBs, and endowment plans starting from circa age 25? Perhaps with one or more ABSD payments along the way? I don’t think that’s a great formula. If you’re amassing long-term savings, pick long-term vehicles.

 

[elvintay07]

Some perspective is in order. Most people aren’t hitting the CPF Annual Limit every year or most years during their working careers. Although there seem to be a lot of people spending lots of money on stupid stuff. Don’t buy cigarettes, for example.

Generally, if you have the happy problem of high CPF savings, I’d max out the “sure bet” first (4.0%+ in MA, SA, and RA). Nail down your baseline age 55/65+ future, basically. Maxing out includes transferring OA dollars to family members’ SA/RA — cross-spousal transfers, for example. Then, if those pathways, plus reasonable housing expenses, still aren’t enough to soak up your OA dollars, prudently invest “surplus” OA dollars. (From 55 onward you could withdraw OA dollars to invest in a wider variety of lower cost ways, and without needing to keep S$20,000 in OA. But you’d weigh those advantages against the option value of liquidating investments to obtain 2.5% interest and to pull back into an asset protection mode.)

Tax relief is also often available in addition to the 4.0%+ interest. The tax relief sweetens the deal. SRS is available if you want even more tax relief.

2.5% is not a great rate from age 25 to 55, for example. But it’s easy to fix that. See above.

This problem isn’t really tied only to OA and CPF. How many people think long-term ”investing” involves spending decades amassing a portfolio of fixed deposits, SSBs, and endowment plans starting from circa age 25? Perhaps with one or more ABSD payments along the way? I don’t think that’s a great formula. If you’re amassing long-term savings, pick long-term vehicles.

I don’t intend to withdraw out my CPF even if I hit age 55. I will let it roll at 2.5% (almost free money with 0 risk unless SG government close shop). I am a bit different from Loo. My approach is I usually whack my SRS in investment, followed by cash then lastly CPF (at major pandemic).

 

[BBCWatcher]

I don’t intend to withdraw out my CPF even if I hit age 55. I will let it roll at 2.5% (almost free money with 0 risk unless SG government close shop).

You could at least roll OA (above S$20,000) into T-bills (for example) when T-bill rates are at least attractive enough. That made financial sense recently during the global inflation spurt when T-bill yields got into the 4.X% range. Technically you lose the asset protection aspects of CPF when dollars are invested, even in T-bills or other Singapore Government Securities.

I am a bit different from Loo. My approach is I usually whack my SRS in investment, followed by cash then lastly CPF (at major pandemic).

I don't think you should try to time markets, so that part I'd quibble with. Moreover, prior to COVID-19 the last global pandemic of any financial market consequence was the so-called Spanish Flu pandemic of 1918-1920. I don't know about you, but I wasn't around for the Spanish Flu pandemic. You could be waiting a VERY long time for the next one.

If you highly value the asset protection characteristics that traditional (non-invested) CPF accounts offer, I could see why CPF savings would be last-to-invest. But I can't figure out why SRS dollars and unrestricted long-term dollars should be treated any differently in terms of propensity to invest them. If they're long-term, they're long-term.

 

[elvintay07]

You could at least roll OA (above S$20,000) into T-bills (for example) when T-bill rates are at least attractive enough. That made financial sense recently during the global inflation spurt when T-bill yields got into the 4.X% range. Technically you lose the asset protection aspects of CPF when dollars are invested, even in T-bills or other Singapore Government Securities.

I don't think you should try to time markets, so that part I'd quibble with. Moreover, prior to COVID-19 the last global pandemic of any financial market consequence was the so-called Spanish Flu pandemic of 1918-1920. I don't know about you, but I wasn't around for the Spanish Flu pandemic. You could be waiting a VERY long time for the next one.

If you highly value the asset protection characteristics that traditional (non-invested) CPF accounts offer, I could see why CPF savings would be last-to-invest. But I can't figure out why SRS dollars and unrestricted long-term dollars should be treated any differently in terms of propensity to invest them. If they're long-term, they're long-term.

I don’t waste my time with tbills. For that 6 months is 4% then after that? I got no time to go bank to do this cpf in/ out to tbills thing. I don’t time the market. I got more than $1m investment in market anytime. But I only deploy my backup cpf when market crash. It is like my last line of defence. That is why I got 0 bonds because cpf is bond already