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Singaporean Matters: CPF 101 — Maximizing Our SA Returns
As our life expectancy increases, retirement adequacy will be key to our successful ageing. For most Singaporeans, our CPF will be our primary means for a retirement income.
While the Government has designed the CPF scheme to cater to the needs of the majority of Singaporeans, there are legal hacks that can help the more savvy amongst us maximize our CPF returns.
Interest Rates and the Power of Compounding
When it comes to retirement investments, it is all about the compounding power of interest. Hence, whenever possible, we should put our money where it earns the most interest.
Our CPF Accounts
Before we reach our retirement age, our CPF is made up of three different accounts — Ordinary, MediSave, and Special.
- Ordinary Account (OA): used for housing, insurance (such as the Dependants’ Protection Scheme), investment, and education. This account is especially important for young couples looking to buy a new home.
- MediSave Account (MA): used for hospitalization expenses and approved medical insurance
- Special Account (SA): used for retirement funding and…
