CPF Minimum Sum: How to earn $17,376 in 7 minutes! (NB: This is not a get-rich-quick scheme.)
Read on if…
- You have excess amount in your CPF Ordinary Account &
- You don’t intend or don’t know what to do with it!
There has been lots of discussion regarding the Minimum Sum Scheme lately. During a regular review with my client, doing what I should, I explained to him how the CPF MSS works. And I was glad that he reminded me of a simple action which CPF Account Holders can take to leverage on the existing MSS!
No mention of names, but my Happy AXA Client is a typical 48 Years Old Singaporean, who has worked for >25yrs, earning about $3,500/mth. “If you can’t beat the system, join the system!” and if he can do it, I think many of us can do it too!
Scenario:
Current Minimum Sum: $148,000
CPF OA: ~$100,000
CPF SA: ~$93,000
His housing loan has been fully repaid, and he has no intention of using his OA in the medium/long term. By simply transferring monies from his OA to SA, he immediately fulfilled his Minimum Sum, and earns an additional interest of 1.5% (SA pays 4% interest as compared to OA 2.5%). In just 7yrs, this additional $55k will earn him and additional amount of $17,376! Based on $148k in his SA currently, his SA will be ~$194k when he turns 55, after compounding interest of 4%! Simply let your SA takes care of the inflation-adjusted Minimum Sum!
If you have 7 minutes, and you are the fortunate ones (unfortunately I am not), you may like to follow the simple steps below:
- Log in to CPF
- Go to “My Requests”
- Click “Building Up My / My Recipient’s CPF savings (eg. Transfer OA to SA savings, Topping up to my RA, CPF Minimum Sum Topping-Up Scheme, etc)”
- Click “Using CPF to Transfer from my Ordinary Account to my Special Account”
- Continue as prompted…
NB: Amount you can transfer is capped at “(Minimum Sum minus Balance in SA)”. This is by no means the best solution. If this solution sounds fair enough to you, give it a thought!
© Wee Khai
Wee Khai is an avid soccer player, who completed 12 half-marathons and 3 full marathons in his entire life.
Wee Khai 