I always enjoy a good story and Kai Xiang wrote a pretty good one to share with me. He has graciously allowed me to share the story here in ASSI: A and B are good friends. They went to NS at 19 yrs old after finishing their poly diplomas and started work as technicians at the age of 21 with a starting salary of $2,000 (median gross for poly graduates). Both A and B have the following balance after their 2 year NS stint OA: $2,738  SA: $708  MA: $962 However, B realised that the SA offers an excellent 4% interest rate and decided to match his CPF SA contributions every month with cash from his disposable income and plan for his retirement.  A didn't bother because he feels retirement is too far away and he would rather have his money with him.  Both worked at the same factory and received a salary increment of 2.5% ......