I am sure most of you have heard of "CPF SA shielding" before. There are many articles written on it and I think Seedly info-graphics below summaries it quite well.

In brief, CPF shielding is actually a hack on the CPF system when you turn 55. At age 55, the following will happen.

1. CPF will setup a Retirement Account (RA) on top of your existing OA, SA and MA.
2. CPF will first transfer your SA to RA to meet the prevailing FRS.
3. If the amount in your SA is insufficient to meet the FRS, your OA will get transferred to your RA to meet the prevailing FRS.
4. When you hit FRS in your RA, you can withdraw the rest of the monies in your OA and SA, treating them essentially like a high interests savings account

Since monies in SA earn a higher interest than in OA, you will want to keep more mone