Topping Up CPF (and my TV Appearance)
Singaporeans should be quite familiar with our Central Provident Fund (CPF) accounts.
The Ordinary Account (OA) is mainly meant for housing and investment. The Special Account (SA) is primarily for old age and retirement-related investments. The Medisave Account (MA) is reserved for payment of medical bills and approved insurance schemes. At age 55, the savings in OA and SA form the Retirement Account (RA), which as the name suggests, is to provide for retirement.
The current interest rates of the three accounts are 2.5% for OA and 4.0% for SA and MA. There is also an extra 1.0% interest for the first $60,000 of the combined balances of the accounts, with up to $20,000 from the OA.
Presently, the working class contributes 20% of their gross salaries to CPF while employers contribute 16%.
CPF as a savings tool
The current ...
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