I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

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Thursday 16 June 2016

Top Up CPF SA From CPF OA? Depending On Who You Ask! (8)

Read? Top Up CPF SA From CPF OA? Depending On Who You Ask! (7)

Too bad that Uncle8888 only started tracking his CPF SA starting from 2003; otherwise his data set will be more convincing. With only one top from CPF OA to CPF SA; his CPF SA has managed to achieve CAGR @ 7.6% from 2003 to 2010 in eight years.

How is this possible without any further top from CPF OA to CPF SA?

Do we forget that we have annual salary increment and every few years salary adjustment to market practice?

Some years we have larger bonuses and some years lesser.

We also have promotions that will lead to higher salary, higher annual increment, and higher bonuses.

All these higher and higher high will eventually add up.

In this way, our CPF SA will be compounding at more than 4% p.a!

If we are REALLY so scare of not meeting our CPF minimum; then the right and more effective way is to improve ourselves for career advancement so that we will have higher and higher CPF SA contributions over the years till 55.

CPF SA should be able to meet the minimum sum. Right?


  1. I only moved my dividend interest/ bond coupon from OA to SA. I reach SA MS > $161K, 2 years ago. Still got 5 years before I reach 55 lol. Did nothing special just grow through salary increment and bonuses. Slowly but surely you will reach there.

  2. My mother who is 77 years old has $100 in her RA. I plan to top up her RA to $60k and get about ~5% compounded interest. I have her nominate her CPF to me. What do you think? Will the future of me thank me?

  3. Replies
    1. She is well below her minimum sum with about one hundred dollars ($100) in her Retirement Account (RA). I would classify her is below minimum sum group

    2. After this RA top up, Is your mum under CPF Life or Minimum Sum withdrawal over 20 yrs?

      I opt for minimum sum over 20 yrs payout as it is quite obvious that CPF Life is not for me. Does your mum still qualify for this option?

    3. I dont intend for my mother to participate in CPF Life or Minimum Sum withdrawl. I keep it as savings for myself like a fixed deposit until she pass away. She is well taken care from my late father's inheritance already. :-)

    4. Hmm... can suka suka doesn't want to participate CPF Life?

      Minimum sum withdrawal is within our control not to draw out.

      You better check with CPF it is under minimum sum scheme or CPF life when top up RA.

    5. One fine day, your mum decided to do good deed and nominate her CPF to charity. How?

      Remember NKF?

    6. Uncle, she is in the Minimum sum withdrawal Scheme. I remember NKF hmm.

  4. Agreed with your : "Slowly but surely you will reach there".

    Some people in the cyber world are trying to scare people to shit. Just focus on our career development and earning more to achieve higher and higher CPF SA contribution, we will be there before 55.

  5. CW,

    Classic Greed and Fear tactics.

    Some respond to Greed - How to be a Millionaire with no money down and 5 minutes a day!

    Some react to Fear - Inflation is eroding your nest egg. Money rotting in banks. Take action now!

    We're on the same page although our philosophy differs. I'm more:


  6. Just for fun...

    Yr 2016 Retirement Sum:

    Basic Retirement Sum (BRS) - $80,500
    Full Retirement Sum (FRS)= $161,000 (The FRS is 2 x BRS.)
    Enhanced Retirement Sum (ERS)# = $241,500 (The ERS is 3 x BRS.)

    If we projecting the FRS for next 30 year @3% inflation, the projected FRS is $390K.

    Can the young adult reach that goal (start career at 25 for 30 yrs)?

    Base on max $6K cap ($390 monthly SA) for 30 years @ 4% interest rate, the projected FRS will be $247K.

    There is a short fall of $143K

    The gap will be small if we add the year-end bonus.

    "Slowly but surely you will reach there"? Chun bo?

    No problem if you are professional and high income earner.

    Very difficult target for lower income group. They probably can attain the Basic Retirement Sum.


    My personal experience:

    Yes, I attained $159K FRS by age 52.
    I did not top up by cash or OA-SA transfer.
    The reason is because because my contribution is at cap ($5K) and plus bonus for 22 years.

    I did not have a plan then but just let the CPF runs its course.
    I arrive at the station early. :)

    1. The annual bonuses help. That is the reason we should focus on our job and get bigger bonuses. Over the years; CPF SA contribution add up.

      Me too. Meet minimum sum early too.

    2. Moral of the story on real people, real CPF SA is ..

      Focus on our job!

  7. Will the fresh degree graduates of the future be earning $2,000 to $3,000 twenty years later? If their (our children or grandchildren) salaries could not be pegged to inflation, they are actually running around in a hamster cage.

    1. What do you mean?

      A U grad earn $3~5K a month now.

  8. I have maxed out my medisave account, the excess about $950/month is channelled to SA. With a small bonus, adding $12,000 to my SA is not difficult.

    Finance bloggers will not be a good sample to draw the conclusion that SA alone will be enough. Many of my friends will have no problem reaching this goal if they remained employed. But we are graduates that started out much earlier.

    If we take a snapshot of the CPF balances now. Look at the last page of this document.

    For the age 50-55, 149,960 out of 209,850 members have balance more than 150k, which is close to minimum sum. If the total amount is equal to the OA, SA and also Medisave, then more people could miss the combined OA and SA minimum sum.

    However the folks in their 50s now are very different from the younger generation. Education attainment would be different and many will start with a better job compared to those in the 60s.

    Perhaps the younger generation would be able to better meet their retirement goal. At the same time, I understand the challenges that are facing them. High housing prices, more contract jobs and higher youth unemployment. I know of graduates that are always in between contract work and unemployment.

    1. In real world, there will be worries. When we are employed; we worry about not having enough for retirement. When we are struggling for day to day survival; there is no need to talk about retirement. Taking one step at a time; only when we have crossed over the current step then we start to care or concern over the next step. That is life!

    2. Quote "For the age 50-55, 149,960 out of 209,850 members have balance more than 150k, which is close to minimum sum."

      Note that the 'balance' include amount withdraw under investment, education, Residential Properties, Non-Residential Properties and HDB.

      My guess is that under this group not many people has adequate large sum on SA.

    3. ...the total 373K is active CPF members, excluding self-employed.

      So, how many self-employed people is depends on CPF for retirement?

    4. This comment has been removed by the author.

    5. Ray, self-employed could contribute to CPF but often cannot or chose not to do so. It is fair to look at those who are salaried employee.

      There is an individual and also group view to retirement adequacy. Createwealth speaks correctly from an individual perspective. Focusing on jobs will get us to the minimum sum. For example, my wife and I will have no problem, but how many people will be like us?

      Maybe you and I are also concerned with how the system as a whole is functioning. http://www.channelnewsasia.com/news/percentage-of-cpf-members-meeting-minimum-sum-on-the-rise--tharman/201362.html

      If we read Tharman comments, I am also optimistic more of the younger generation will meet minimum sum but a chunk will still miss the mark.


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