CPF SA Shielding hack - RIP (Obsolete)

[chong18]

The removal of SA at 55 doesn't change the fact that SA still pays 4% until 55. Sure it causes some change in assumptions in retirement planning but not sure whether all the whining about previous top up or transfer to SA are justified

I don't regret topping up my SA and transferring OA to SA to hit FRS early. Still get to earn higher interest and compounding effect over the years up to age 55. But have to re-do my retirement planning 55 onwards. Quite a big impact.

 

[~sabaisabai~]

it says those 55 above, no more SA
how about those below 55, their cpf contribution goes to both oa, sa and ma right?
and how about if buy tbill/fund year end before it reaches 2025, when mature, where does it goes to? oa?

 

[jywy2005]

I hit 55yo in mid Dec. So no more SA shielding. I guess they are encouraging more people to top up RA to ERS since the funds in your SA will be transferred to OA if you only do FRS

 

[bo_tak_chek_bbfa]

Is it @henrylbh actually I wonder what he would think about this

Why 35y and is it always stuck to begin with? Even with this change got diff?

Cause I still young and I want liquidity to retire early. Initially I did plan to pump my sa abit after i buy my housing and then maybe take out my money at 55 or something but didn't research too much into it.

 

[elvintay07]

Should be if RA hits FRS, the rest go OA

What I meant was those already > 55 years ago, their SA is shielded mah. Means now SA got like few hundred thousands earning 4%. Very unfair lei.

 

[twosix]

I never planned to use my cpf for retirement. Just put enough into RA for FRS, the rest in SA and OA to earn interest until I pass away, then hand down to my family. My loss will be the -1.5% interest.

Maybe the excess SA can put to other use like buying endowment funds that generates more than 2.5% yield?

 

[reddevil0728]

it says those 55 above, no more SA
how about those below 55, their cpf contribution goes to both oa, sa and ma right?

no change

and how about if buy tbill/fund year end before it reaches 2025, when mature, where does it goes to? oa?

Likely straight into OA?

Cause I still young and I want liquidity to retire early. Initially I did plan to pump my sa abit after i buy my housing and then maybe take out my money at 55 or something but didn't research too much into it.

Ok so circumstances specific to you

What I meant was those already > 55 years ago, their SA is shielded mah. Means now SA got like few hundred thousands earning 4%. Very unfair lei.

Their SA is just their SA.

no such thing as shield or not by policy

 

[DevilPlate]

Cause I still young and I want liquidity to retire early. Initially I did plan to pump my sa abit after i buy my housing and then maybe take out my money at 55 or something but didn't research too much into it.

Still can withdraw at 55 tio bor?

 

[DevilPlate]

What I meant was those already > 55 years ago, their SA is shielded mah. Means now SA got like few hundred thousands earning 4%. Very unfair lei.

Those are minority lah. Policies always for the majority.

 

[elvintay07]

Those are minority lah. Policies always for the majority.

The last 20 years shielding lei. Minority? Singapore next 5 years maybe WWIII extinct liao

 

[reddevil0728]

The last 20 years shielding lei. Minority? Singapore next 5 years maybe WWIII extinct liao

Got stats of how many did that?

 

[Mephist0pheLes]

Got stats of how many did that?

it was about 2% of those that turned 55 in 2021.

but i last time alr said liao, the more ppl doing this hack, the faster the govt will close the loop.

 

[bruiser69]

What I meant was those already > 55 years ago, their SA is shielded mah. Means now SA got like few hundred thousands earning 4%. Very unfair lei.

It is not a forever thing as your statement seems to imply. Come next year 2025, those already > 55 and those who turn 55 years all also no more SA. These folks do not continue having their amounts in SA shielded

Actually the shielding here means just a temporary timeframe. To move their SA into other funds so that CPF takes from the OA first to put into RA at 55. Then the fella withdraws money from his funds and put back into the CPF SA

 

[DevilPlate]

The last 20 years shielding lei. Minority? Singapore next 5 years maybe WWIII extinct liao

Less than 5% if i rem correctly. I read somewhere before.

https://www.channelnewsasia.com/singapore/budget-2024-retirement-account-special-account-cpf-4128816
This article mentioned 2% nia.

 

[JustDoLor]

I think it could have all started with a snowball threw into the widely circulated official public printed media? Do you know what happen to the snowball after that?

Actually is quite naive to think that she’s the actual cause leh

 

[jywy2005]

Looks like there are a lot of people who did the SA shielding and are letting the funds roll in their SA accounts, enjoying 4% interest all these years. Now CPF board realises that it is no longer sustainable to keep paying the interest for these high yield savings accounts

 

[DevilPlate]

Looks like there are a lot of people who did the SA shielding and are letting the funds roll in their SA accounts, enjoying 4% interest all these years. Now CPF board realises that it is no longer sustainable to keep paying the interest for these high yield savings accounts

CPF is not for the rich to park their monies.

But then the “poor” are usually anti-cpf too hahaha

 

[DevilPlate]

I think it could have all started with a snowball threw into the widely circulated official public printed media? Do you know what happen to the snowball after that?

Blame MP Melvin Yong lah as mentioned in the article whahaha
https://www.channelnewsasia.com/singapore/budget-2024-retirement-account-special-account-cpf-4128816

 

[BBCWatcher]

From 2025 onwards all age 55 and above affected. This year still no effect.

SA "shielding" is close to dead now because it costs at least one month of lost SA interest to shield. There aren't many more months of SA interest left even if you turn 55 this month (February). Run the numbers to see if it's worth doing, but it may not be already. (It'll depend on your SA balance and your 55th birthday month.)

By right, still not obsolete ? Hack still got till Dec 2024 ....

See above.

I don't regret topping up my SA and transferring OA to SA to hit FRS early. Still get to earn higher interest and compounding effect over the years up to age 55. But have to re-do my retirement planning 55 onwards. Quite a big impact.

You have the option to increase your Retirement Account to the new "supersize" Enhanced Retirement Sum from 2025. This'll also mean the ERS increase each year will be based on the new 4X BRS figure, so the dollar value of the annual increase will be higher. This new tool can help a lot.

 

[reddevil0728]

it was about 2% of those that turned 55 in 2021.

but i last time alr said liao, the more ppl doing this hack, the faster the govt will close the loop.

yea but no choice right.

I think it could have all started with a snowball threw into the widely circulated official public printed media? Do you know what happen to the snowball after that?

what to do. it's inevitable.