As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Monday, 10 August 2020

CPFIS after 55. To close or NOT to close? (3)

Read? CPFIS after 55. To close or NOT to close? (2)

Read? Uniquely Singapore Sources Of Passive Income For Koala/Panda Retail Investors Only

For CDP,  it is quite straight forward under low interest rate environment and with more years to come under such low rate. 

Most retail investors may not be able to tahan holding cash as war chest earning low yield; and are more likely to invest asap!

But for CPFIS, it is a different ball game of investing strategy. 

2.5% compound interests is a decent return on capital protection and liquid asset after 55

Your war chest in CPFIS is earning 2.5% compound interests while waiting to fight the next battles or war!

The question to ask ourselves. 

Are we so confident of our investing skills and investment return?

If yes, then CPF OA and SA after 55 doesn't exist any more as all money in OA and SA have been withdrawn!


  1. Hi CW8888, I don't really understand why you said CPFIS is earning 2.5% interest. Let's say I have bought Keppel shares with money in OA when I'm 54 years old. Then I sell the shares after I have turned 55 and RA is created. I assume the proceeds will stay in the CPFIS account maintained with the agent bank. Then after 1 month of no activity, the proceeds are refunded to RA since OA no longer exist. That is the process I would like to find out more. Can I continue to money in the RA to invest like what I have been doing with OA before 55? How is the CPFIS earning 2.5% interest? Do enlighten me. Thank you.

    1. On your 55th age old Birthday, CPF will celebrate your 55th birthday and gives you birthday present.

      55th Birthday Present from CPF

      On your 55th birthday, a Retirement Account will be created for you. Savings up to your Full Retirement Sum from your Special Account and Ordinary Account will be transferred to your Retirement Account.

      RA (FRS)
      SA - $0 to whatever left after transferring to meet FRS
      OA - Make up to FRS if any

      After 55th birthday

      RA - FRS
      SA - whatever left
      OA <--> CPFIS

      It is understandable that CPF scheme is NOT easy to understand.

      Can start jio me for kopi CPF session. LOL!

      How will the Future You thank you? (2)

      BTW, before reaching 55, CPF will send us letter and booklet and also invite us to attend Reaching 55 CPF Workshop. Light refreshment is provided! Got free makan so I attended to listen to Speaker and types of questions asked by CPF members! LOL!

    2. Thanks so much! Your explanation is so clear. CPF should have done something like what you just did. Roughly when before 55? Is it like 1 year before or 6 months before?

  2. Wah! so good ah! CW.

    My time got no makan invitation meh.

  3. Can we withdraw OA and SA after 55 years? How about cash top up?

    1. Do you mean voluntary CPF contribution to CPF accounts or top up to SA?

    2. Think rstu can't withdraw at 55. Can only collect as part of monthly payout after 65.

      I.e. those you enjoy tax benefits you cannot suka suka withdraw. Lol.

    3. Voluntary top up. How about withdraw any amount? Yearly or monthly? Is it can consider as saving account?

    4. Voluntary CPF contribution to all three accounts OA, SA and MA is NOT same as Top up SA i.e. RSTU.

      Contribution is not top up. Not same treatment by CPF.

      You can make Voluntary Contribution (VC) either to yourself or on behalf of someone else either to: all 3 CPF Accounts (non-tax deductible);

    5. "Think rstu can't withdraw at 55. Can only collect as part of monthly payout after 65."

      Enjoy tax relief first; then of course CPF will pay part of monthly payout as CPF Life like installation payment. LOL!


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