Does the CPF Special Account Closure Affect Only CPF-Rich Members? (S4E4)

As the leading fee-only wealth advisory firm in Asia, Providend has consistently guided clients on incorporating CPF into their comprehensive wealth plans.

In this week’s Money Wisdom episode, our co-host Isaac talks to our CEO, Christopher about the CPF Special Account (SA) closure on 19 January 2025, which had an impact on approximately 1.4 million CPF members. Chris highlights the importance of first having clarity on your original intention for your CPF funds, before purchasing financial products solely to grow your CPF funds at a higher interest rate, without first considering your life goals.

Timestamp:
03:30 CPF SA’s original purpose. Retirement savings, transition to CPF LIFE after 55.
04:40 Closing of CPF SA for those 55 and above.
10:20 SA shielding impact. Balancing liquidity needs with investment returns.
12:32 CPF as a Singaporean-centric retirement scheme.
14:07 CPF SA closure impact on CPF-rich members.
23:35 CPF top-ups and Ordinary Account (OA) investments are irreversible. Also, consider liquidity.
24:17 CPF OA investments offer potential returns but come with risks.
25:09 Guaranteed 2.5% return ensures stability.
26:17 Is investing CPF OA risky for those without excess cash.
27:27 Withdrawing your CPF OA? Think carefully and avoid hasty decisions.

You can read Chris’s article in The Business Times on this topic here: https://providend.com/cpf-special-acc...

Listen to this podcast on our website here: https://providend.com/cpf-special-acc...

Stay tuned for our next episode, where we kick off our mini-series, "Milestones by Decade"!

Music courtesy of ItsWatR.

The host of this episode, Isaac Ong, is a Client Adviser at Providend, the first fee-only wealth advisory firm in Southeast Asia and a leading wealth advisory firm in Asia.

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