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1. What is happening to the Special Account in 2025?
- Starting 19 January 2025, the Special Account (SA) will be closed for members aged 55 and above.
- All SA monies will be automatically transferred to the Retirement Account (RA).
- Any SA balance above the Full Retirement Sum (FRS) will be moved to the Ordinary Account (OA), earning an interest rate of 2.5% p.a..
- Future CPF contributions that go to the SA currently will be allocated to the RA instead. Excess funds (if FRS is reached) will flow into the OA.
2. If you are aged 55 and above, how will this affect you?
- CPF Shielding Will Be Removed:
- Members can no longer use CPF Investment Scheme (CPFIS) to shield SA funds and park excess amounts back in the SA (which earns 4.0% p.a.) after meeting the FRS.
- Excess funds will now go to the OA instead and earn an interest rate of 2.5% p.a..
- RA Interest Remains Competitive:
- Funds in the RA will continue to earn 4.0% p.a. interest.
3. If you are aged below 55, what does this mean for you?
- Starting two weeks before your 55th birthday, you will no longer be able to use your Special Account (SA) funds for new CPF Investment Scheme (CPFIS) investments via FSMOne.
- Any Regular Savings Plans (RSPs) tied to your SA will be automatically terminated on the 13th of the month before your 55th birthday.
- This ensures that your SA funds are prepared for transfer into the Retirement Account (RA) when you turn 55.
4. Do I have to sell my SA investments after the closure of SA?
- No, you can continue holding your existing CPFIS-SA investments.
- When the investments are sold or mature:
- The proceeds will flow to the RA (up to the FRS).
- Any remaining amount will go to the OA instead of the SA (since SA will no longer exist).
5. If the FRS is met, and you try to sell your existing CPFOA Investments?
- Proceeds from selling CPFIS-OA investments will flow back to the OA regardless of the amount in your RA.
- The funds in the OA will continue earning 2.5% p.a. interest.
6. What should you do if you have excess balance in OA?
- You can continue to top up your RA to the prevailing Enhanced Retirement Sum (ERS) from age 55 to increase the amount of monthly payouts (do note that this is not reversible).
- You can withdraw CPF-OA savings above the FRS and use them for investments or expenses.
- Alternatively, consider investing excess OA funds under CPFIS to earn higher potential returns. Invest your CPF-OA funds through FSMOne in options such as:
- Unit Trusts
- Stocks/ETFs
7. Why Choose FSMOne for CPF Investments?
- Permanently 0% Sales Charge
- Unlike banks, we offer 0% sales charge on unit trusts, allowing you to maximize the allocation of your CPF monies to investments. We are also the first investment platform in Singapore to offer permanently 0% sales charge.
- No platform/access fees for Unit Trusts using CPF funds
- Invest without worrying about platform/access fees for Unit Trusts using CPF funds, thereby maximising your returns.
- Dedicated Investment Advisory team
- Reach out to advisory@fundsupermart.com if you need recommendations or advice on CPF and non-CPF investment related questions.
To begin with CPF investing, here's what you'll need:
- Be at least 18 years old;
- Have more than $20,000 in your OA; and/or
- Have more than $40,000 in your SA.
- Have an agent bank account with DBS, OCBC or UOB if you are investing your CPF-OA monies (don't worry, it's easy to open one);
- Not be an undischarged bankrupt; and
- Have an FSMOne account!
Need more information or help?
Click here to open your free account and start investing globally and profitably today.
Call us at +65 6557 2853 or send us an email to clienthelp@fundsupermart.com if you have encountered any difficulties in getting started.
