CPF SA Shielding hack - RIP (Obsolete)

[vsvs24]

I worked out that SA interest rate for Apr to Jun 2024 is 4.05%.

SA interest rate for Jan to Mar 2024 is 4.08% . RA interest rate was "forced" to be changed from 4% to the same as SA from Jan 2024. So maybe biu song so this trigger to faster close SA.

 

[chopra]

Once SA reached FRS cannot transfer from OA to SA liao....

Sian…….

 

[chiokcc]

https://www.cpf.gov.sg/member/faq/r...t/what-is-the-current-enhanced-retirement-sum

Here are the ERS amounts for 2024 to 2027 to enable you to plan your top-ups:

Year	2024 (Current)	2025	2026	2027
Enhanced Retirement Sum	$308,700	$426,000	$440,800	$456,400

 

[chiokcc]

https://www.cpf.gov.sg/member/infoh...bn:bau:alsgm:cpfoverview:cpf101:announcements

 

[RedsYWNA]

Is there still a case to shield SA?

So that we can top-up the RA with excess cash instead, to earn 4% on surplus cash? Does this method assume that bank accounts can't match 2.5%?

 

[reddevil0728]

Is there still a case to shield SA?

So that we can top-up the RA with excess cash instead, to earn 4% on surplus cash? Does this method assume that bank accounts can't match 2.5%?

how does it work?

When u shield, and then unshield it will first go to RA first if not yet FRS no?

 

[BBCWatcher]

Is there still a case to shield SA?

Not unless you’re also going to “shield” OA. The reason you’d shield both is that you’re happy enough with 2.5% interest and/or want to inject more dollars into CPF, for asset protection purposes.

So that we can top-up the RA with excess cash instead, to earn 4% on surplus cash? Does this method assume that bank accounts can't match 2.5%?

Yes, and/or you want to protect more assets.

 

[RedsYWNA]

how does it work?

When u shield, and then unshield it will first go to RA first if not yet FRS no?

Shield OA and SA. Top-up RA to full FRS using excess cash (which earns lower than 4%).

But this method assumes bank accounts earn less than 2.5%

 

[reddevil0728]

Shield OA and SA. Top-up RA to full FRS using excess cash (which earns lower than 4%).

But this method assumes bank accounts earn less than 2.5%

dun think factor in investment into how much you can top up?

 

[chiokcc]

Just wait for the dust to settle ..... some financial companies will think of new products to interest you to part with your newly found OA fortunate to invest in them .....

 

[royalmix]

In future, OA will truely be your ATM, withdraw anytime when there are higher returns from banks or any opportunity out there, no more constraints from SA interest, no need to exploit any hack!

The new CEO/management is obviously very good at fixing loopholes, one rule change to fix 2 "big" loopholes!

 

[BBCWatcher]

Shield OA and SA. Top-up RA to full FRS using excess cash (which earns lower than 4%).
But this method assumes bank accounts earn less than 2.5%

Individuals doing this would probably raise their RAs to the ERS. It’d be more for asset protection purposes, I think.

 

[royalmix]

Shield OA and SA. Top-up RA to full FRS using excess cash (which earns lower than 4%).

But this method assumes bank accounts earn less than 2.5%

You decide nearer the time you turn 55 if it is worth your effort/money, eg now some banks and fi are offering more than 4%pa returns!

 

[highsulphur]

You decide nearer the time you turn 55 if it is worth your effort/money, eg now some banks and fi are offering more than 4%pa returns!

what are such investments by banks and fi at the moment?

 

[RedsYWNA]

Individuals doing this would probably raise their RAs to the ERS. It’d be more for asset protection purposes, I think.

The main issue with ERS is the liquidity. Which will deter many

I think cpf should expect some sig withdrawals come 2025.

 

[royalmix]

The main issue with ERS is the liquidity. Which will deter many

Yes, you are locking up monies for Life! Unless you exploit the exceptions!

 

[havetheveryfun]

In future, OA will truely be your ATM, withdraw anytime when there are higher returns from banks or any opportunity out there, no more constraints from SA interest, no need to exploit any hack!

The new CEO/management is obviously very good at fixing loopholes, one rule change to fix 2 "big" loopholes!

except once u take out from OA u cannot put back when the returns from banks drop below OA again in that 10 years

 

[item2sell]

except once u take out from OA u cannot put back when the returns from banks drop below OA again in that 10 years

Think harder.

but please don’t share if you figure out.

No need to make more cpf changes harder for us

 

[havetheveryfun]

Think harder.

but please don’t share if you figure out.

No need to make more cpf changes harder for us

no matter what u think of eventually some youtuber or influencer will share to get views

 

[elvintay07]

Personally I think this move will push property higher. In the past, we reserve ~ $300k of OA aiming to let it flow into RA 15-20 years later. Now we are totally screwed as government will close our SA and then move all into RA. You have 2 options

(1) Push OA into RA but I think I will be out of my mind to do that. Non reversible process

(2) Use OA to buy property or REITs then use the rental as my income for retirement. I think should be a better move