Peep into the 20 year old boy CPF Account - Transfer from OA to SA

It had been some time since I wrote anything about CPF.

It had also been close to a year since I shared my last "peep" into my CPF Accounts. 

Read: Peep into the 19-year-old student CPF Account - Transfer from OA to SA 

I've decided to make it more meaningful this time round aside from sharing the figures alone, and I will briefly write to myself about my feelings, experience, and thoughts towards the process. 

Source: CPF Board - BRS 2016~2020

The CPF scheme is designed and created to help working Singaporeans and PRs to primarily fund their retirement, health care and housing needs.

For every dollar we've earned from our employment, the government and our employer is helping us to contribute and "subsidize" on our costs towards funding for our retirement, healthcare and even getting a house. 

For what it matters, perspective is important. 

I'm sure there's many who view the CPF as a "stupid" system that is siphoning our hard-earned monies and locking them in for years with zero or no chances of recovering them. 




Instead, I'd like to take this opportunity to remind every reader that the monies in our CPF are still our hard-earned money! The CPF is, in fact, a benefit and privilege offered by our local government to help the citizens. 

There is several ways which we will be able to access to our monies, and we must clearly remember what the CPF is here for. 

I'm sure you would have an option to withdraw your monies from your CPF after you've hit 55 years old, should you be able to meet the FRS! 

Okay, I shall not be too talkative now and here are the numbers after 1 year:

When I share my ideas about the CPF system to my peers and colleagues weeks ago and told them about the transfer from my CPF OA-SA account, I was actually mocked and criticize for my stupidity to further lock the funds I have in my CPF account! 

After reading AK's post this morning, I realize that I'm not alone! 

Read: CPF SA time and income lost due to peer pressure

As a reminder, I hope that everyone will be able to clearly understand that the transfer from CPF OA-SA is irreversible. Having that said, please be mindful and not forget your current profile before doing so. 




Should you be needing the funds in your OA for housing needs or so, please do not follow whatever I've written here today.

I'm not trying to advocate for anyone to do what I've done, but to share about my thoughts and sentiments with regards to the CPF transfer. 




Having that said, this is my 3rd full transfer from OA-SA I've done.

The transfer is done in consideration to my current profile and following reasons:

1. I'm 20 years old today, and I'm very certain that I will not be needing the funds in my OA today or in the near upcoming years. 
2. The transfer from OA-SA is done to maximize the interest I'll earn from CPF. As the total figure I have in my SA is below S$40,000, I will be earning a 5% interest for the funds inside today.
3. The transfer is also done so that I will be able to reach FRS as early as possible.

As far as we know, the CPF OA is offering 2.5% interest and the SA is offering 4% interest.

Reaching FRS as early as possible?

The increase in Full Retirement Sum in the recent years from 2014-2020 ranges between 4.74% - 2.84%, with the increase stabilizing in the late 4 years. 

The growth rate on average since 2004-2020 of our FRS stands at 4.88% yearly. With our CPF SA account paying 4% interest to us, we do not need to work that hard to ensure that we will be able to withdraw our funds at 55 years old. 

Assuming that the CPF FRS is set to increase by 3% yearly from 2020 onwards and that I've already attained the Full Retirement Sum, I should be able to rest well with my pillows up high that I will be able to make a withdrawal of any amount I have on top of the FRS from my CPF account when I turn 55 years old. 




In short, the earlier we reach FRS, the lesser work is required on our end. 

The government will be helping us with the workload to ensure that we have enough for our retirement. 

So instead, to dwell on the fact that you've insufficient funds and you're not able to withdraw any monies from the CPF, you could always consider making good use of this scheme!


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