While CPF SA Shielding and OA Shielding — A Live Example is more applicable to more senior adults who are nearing the age where RA is formed at .age 55, there is a group of people who are believers in giving a kick-start to their children’s CPF retirement planning early by inculcating transferable and manageable savings and investment habit or even leaving behind a legacy through their child’s CPF.

This includes myself, who strongly believes in the power of compounding your child’s SA from young.

Not everyone realise this — All Singapore Citizen newborns automatically have / can create a CPF account. Newborns born on or after 1 January 2015 also qualify for the enhanced $4,000 MediSave Grant for Newborns, which gives a great start in an account that earns 4% interest annually. The first $60,000 of combined balances (with up to $20,000 from the OA) earns an extra 1% interest. This is the most crucial point: