CPF Account Value Thread 2025

[chong18]

i think there are only a few ways to attain higher SA

1) Top up SA with cash or from OA until FRS (this is what I did - transfer from OA in my 20s)

This is what I did but only started in my mid thirties, transfer from OA one lump sum and subsequently monthly transfer OA to SA after my mortgage payment plus top up $7k cash yearly until I hit FRS at 39. Should have started earlier on hindsight..

 

[DevilPlate]

This is what I did but only started in my mid thirties, transfer from OA one lump sum and subsequently monthly transfer OA to SA after my mortgage payment plus top up $7k cash yearly until I hit FRS at 39. Should have started earlier on hindsight..

Hmm so fast hit SA FRS for what sia…..slowly top up 8k every year for tax relief better right?

 

[highsulphur]

Hmm so fast hit SA FRS for what sia…..slowly top up 8k every year for tax relief better right?

For compounding? Plus now can top up MA as an alternative

 

[BBCWatcher]

just saying property mortgages do not deduct from SA. You can top up SA either with cash or from OA so property is irrelevant when it comes to optimising SA

Currently don't. There are some older CPF members who used SA dollars to help pay for housing in the past, back when that was allowed.

But I think the point is that OA can often be used for housing (and higher education), and you should rightly take those alternative uses into account when deciding how much OA to transfer to SA. If for example you've already got plenty of unrestricted dollars to support housing and education needs then you don't need OA as OA. Just transfer it all to SA (and/or qualified family members' SAs and RAs) as soon as you can and up to the maximums allowed. If as another example your OA is tracking ahead of what you need from OA for future housing then it probably makes sense to transfer some OA dollars to SA now.

Hmm so fast hit SA FRS for what sia…..slowly top up 8k every year for tax relief better right?

Tax relief is nice, but so is 4% interest (and 5% interest if you're still in bonus interest territory). Moreover, every CPF member under age 65 has/had at least $4,000 of tax relief (out of the $8,000 per year) obtainable via a Voluntary Contribution to MediSave. That's because the Basic Healthcare Sum rose $4,000 on January 1, 2025. And that $4,000 does not count the gaps below the BHS that open up whenever there are MediSave deductions for insurance premiums or qualified medical spending. You may also be able to win another $8,000 of tax relief via qualified family members (adding funds to their MA/SA/RAs). And the Supplementary Retirement Scheme (SRS) is available, too.

There are also a few people who don't like the fact that cash top ups to SA/RA, plus accrued interest on those cash top ups, cannot be withdrawn in a lump sum except perhaps in cases of serious medical necessity. Transfers can be (from age 55 onward, at least when RA is otherwise "adequately" funded).

 

[DevilPlate]

For compounding? Plus now can top up MA as an alternative

Usually MA max out naturally pretty fast

 

[chong18]

Hmm so fast hit SA FRS for what sia…..slowly top up 8k every year for tax relief better right?

For peace of mind, at least clear one hurdle, I also paid off my mortgage at 40 lol.. offload another burden can sleep better at night no need to worry about retrenchment

 

[highsulphur]

For peace of mind, at least clear one hurdle, I also paid off my mortgage at 40 lol.. offload another burden can sleep better at night no need to worry about retrenchment

You are going to get a wall of text soon on why you shouldn't pay off so quickly

 

[sglandscape]

You are going to get a wall of text soon on why you shouldn't pay off so quickly

It is unfortunately true, mortgage debt is one of the cheapest debt around, given the high rates now and you could lock in mortgage rate at below 3%, better off knowing you have the cash to pay it off anytime and in the mean time make extra risk free money that you could buy a few plates of free chicken rice, while also contributing to the hawker's livelihood.

It's the same dilemma some people have of using cpf to pay off the mortgage loan in full, when they could have been better off having the loan and earning interest in the CPF OA.

 

[chong18]

It is unfortunately true, mortgage debt is one of the cheapest debt around, given the high rates now and you could lock in mortgage rate at below 3%, better off knowing you have the cash to pay it off anytime and in the mean time make extra risk free money that you could buy a few plates of free chicken rice, while also contributing to the hawker's livelihood.

It's the same dilemma some people have of using cpf to pay off the mortgage loan in full, when they could have been better off having the loan and earning interest in the CPF OA.

That's only true if you are investing the money.. I was paying 2.6% interest HDB loan back then, mortgage amount too little to refinance so well.. might as well just use the idle cash and OA to pay off

 

[sglandscape]

That's only true if you are investing the money.. I was paying 2.6% interest HDB loan back then, mortgage amount too little to refinance so well.. might as well just use the idle cash and OA to pay off

Do you count as placing in Tbills as investing? Or placing FD with OCBC as investing? These were yielding 4% back when rates were going up.

Assuming 100k balance, you earn 1.2% (2.6% vs 3.8% to be conservative), that's 1.2k of extra interest you would have earned for yourself in a year with minimal effort.

 

[BBCWatcher]

I legitimately cry for the (hopefully few) people who paid off low interest mortgages faster than required, died far too young, and had survivors who couldn't make any HDB Home Protection Scheme claims.

 

[chong18]

Do you count as placing in Tbills as investing? Or placing FD with OCBC as investing? These were yielding 4% back when rates were going up.

Assuming 100k balance, you earn 1.2% (2.6% vs 3.8% to be conservative), that's 1.2k of extra interest you would have earned for yourself in a year with minimal effort.

Paid off my mortgage before interest went up

 

[8zaoyu]

I legitimately cry for the (hopefully few) people who paid off low interest mortgages faster than required, died far too young, and had survivors who couldn't make any HDB Home Protection Scheme claims.

Cry? If you paid off one mortgage FULLY, you qualify another FULL not PARTIAL LOAN for pte next housing last time - when last time there was NO or LESSER ABSD
Noted you like to put "tax relief via qualified family members (adding funds to their MA/SA/RAs", don'T need to put this, because those coming in HWZ here mostly dumber / lesser qualified than family member especially spouse. And in SG, spouses are mostly equal social status. For low ses (too low incomes to pay taxes) couples - govt top up housing grants, silver bonuses, etc
HPS up to 60 yo ONLY, cover who if SINGLE ownership especially HDB!

 

[BBCWatcher]

Cry?....

It's at least extremely difficult to understand what you wrote.

I'll explain in case you don't understand the point. When someone with a mortgage and with HDB Home Protection Scheme insurance (or a comparable MRTA policy) dies, their insurance pays off the entire remainder of the mortgage — or at least that borrower's entire remaining share of the mortgage if he/she is a co-borrower. But if that person already paid off the mortgage, then suddenly or fairly suddenly dies, there's zero insurance payout to survivors. The money that person (or that family) used to pay off the low interest mortgage faster than required not only didn't earn higher investment returns elsewhere, it's completely wasted in this tragic scenario. Burned up, vaporized, lit on fire. That's a really bad outcome!

 

[BBCWatcher]

Paid off my mortgage before interest went up

Why before? I understand making an interest rate-based decision when you need to make that decision. But before interest rates rose? I'm bewildered by that.

There are quite a few homeowners in Singapore with bank mortgages right now, in January 2025, that are still paying 1.5% or even 1.4%. And many who will continue paying that ultra low rate for even about a year longer. That's because they got 5 year fixed rates in late 2020 or early 2021 when those ultra low rates were available. I assume they're all very happy in today's ~3.0% 6 month T-bill world. Why wouldn't/shouldn't they enjoy that 1.4% or 1.5% money every possible minute they're allowed to enjoy it?

....But to steer this back to CPF account balances in 2025, you often have some attractive interest rate options with CPF. CPF's minimum interest rate is OA, at 2.5% p.a. It would not be brilliant to use OA dollars earning 2.5% to pay off a 1.4% or 1.5% mortgage any faster than required.

 

[JuniorLion]

Or his parents top up his SA to max since 1 year old.

 

[chong18]

Why before? I understand making an interest rate-based decision when you need to make that decision. But before interest rates rose? I'm bewildered by that.

There are quite a few homeowners in Singapore with bank mortgages right now, in January 2025, that are still paying 1.5% or even 1.4%. And many who will continue paying that ultra low rate for even about a year longer. That's because they got 5 year fixed rates in late 2020 or early 2021 when those ultra low rates were available. I assume they're all very happy in today's ~3.0% 6 month T-bill world. Why wouldn't/shouldn't they enjoy that 1.4% or 1.5% money every possible minute they're allowed to enjoy it?

....But to steer this back to CPF account balances in 2025, you often have some attractive interest rate options with CPF. CPF's minimum interest rate is OA, at 2.5% p.a. It would not be brilliant to use OA dollars earning 2.5% to pay off a 1.4% or 1.5% mortgage any faster than required.

My mortgage interest was 2.6%, what I meant was interest rates for tbills etc only went up after (at least a few years) I have paid off my mortgage.

 

[BBCWatcher]

My mortgage interest was 2.6%, what I meant was interest rates for tbills etc only went up after (at least a few years) I have paid off my mortgage.

Please stay alive at least until that HDB loan would've naturally ended, OK?

 

[8zaoyu]

It's at least extremely difficult to understand what you wrote.

I'll explain in case you don't understand the point. When someone with a mortgage and with HDB Home Protection Scheme insurance (or a comparable MRTA policy) dies, their insurance pays off the entire remainder of the mortgage — or at least that borrower's entire remaining share of the mortgage if he/she is a co-borrower. But if that person already paid off the mortgage, then suddenly or fairly suddenly dies, there's zero insurance payout to survivors. The money that person (or that family) used to pay off the low interest mortgage faster than required not only didn't earn higher investment returns elsewhere, it's completely wasted in this tragic scenario. Burned up, vaporized, lit on fire. That's a really bad outcome!

The current scenarios are most senior citizens living past 60, no matter how you bully them, they still move around in circles to do their jobs till 70 yo. Those who die under 60 yo very rare nowadays, if got grown up kids, would have decided to sell off the old hdb and made profit to downgrade already. As said, if single over got the keys at around 40, no kids, buy HPS to cover till 60 yo, what for. Mortgage Reducing Insurance of pte bank loans is for pte loans are hugh loans such that the co-owner cannot handle with hugh negative sale. HDB 3-rm flat was 30+k only in 1980s compared to recent 300+k resales (cheapest)
Maybe, you are higher paid PRs/expats who have to buy pte or HDB resales, do not have grants, medical subsidies, CDC vouchers, etc, every time got to mention tax, non-working spouse, unsubsidized edun for kids, etc - already do not belong to us who are 80% HDB, only over 10+% owning pte properties

 

[sglandscape]

The current scenarios are most senior citizens living past 60, no matter how you bully them, they still move around in circles to do their jobs till 70 yo. Those who die under 60 yo very rare nowadays, if got grown up kids, would have decided to sell off the old hdb and made profit to downgrade already. As said, if single over got the keys at around 40, no kids, buy HPS to cover till 60 yo, what for. Mortgage Reducing Insurance of pte bank loans is for pte loans are hugh loans such that the co-owner cannot handle with hugh negative sale. HDB 3-rm flat was 30+k only in 1980s compared to recent 300+k resales (cheapest)
Maybe, you are higher paid PRs/expats who have to buy pte or HDB resales, do not have grants, medical subsidies, CDC vouchers, etc, every time got to mention tax, non-working spouse, unsubsidized edun for kids, etc - already do not belong to us who are 80% HDB, only over 10+% owning pte properties

What you're describing is not directly relevant for when bad things happen to an individual. It's always easy to generalise base on statistics, until tradegy strikes you personally.

Households living in HDB is 78%, condos 17% and landed 5% as of 2023. The condos proportion has been on the rise compared to a decade earlier.