Those under 55 years old, CPF OA continue to earn up to 3.5 percent a year on their OA funds and up to 5% on their special and medisave account . these rates include an extra 1 % interest on the first $60k of their combined balance (capped at $20k for OA).
for those 55 years old and above, government pay members extra 2% interest on the first 30k of their combined balance( capped $20k for OA) and an extra 1 percent on the next $30k. this means that they will earn up to 6% interest a year on their retirement balance.
which age group low balling the tbill ?
take my example
i have 200k oa ,250k sa and 60k sa
my 200k earn 2.5%
my 250k earn 4%
my 60k earn 4%
i earn an additional 1% for 60k
if i invest.180k oa,
my 20k earn 2.5%
my 250k earn 4%
my 60k earn 4%
i earn an additional 1% for 60k
if after this i invest 210k of sa
my 20k earn 2.5%
my 40k earn 4%
my 60k earn 4%
i earn an additional 1% for 60k
so dont have to bluff people about the 3.5% and 5%. no matter how you invest youtr sa and oa, i still get the extra 1%. for many of us, it is still 2.5% for oa and 4% for sa