As you likely would have heard by now. DPM Lawrence Wong announced 2 big changes to CPF at last week’s budget. After which many Singapore investors were up in arms. Given how integral CPF is for Singapore investors (most of us would have a decent chunk of our net worth in CPF). I wanted to take some time out to discuss:

1. What exactly are the changes to CPF-SA?
2. How does this affect Singapore Investors in retirement?
3. Are we able to invest to replace the CPF-SA?

How does CPF-SA work today (before the changes) Let’s take a step back and start right at the top. How did CPF Special Account (CPF-SA) work before this round of changes? The way it worked, is that at 55 years of age. Everything in your CPF-SA would be transferred into a CPF Retirement Account (CPF-RA), up to the Full Retirement Sum (FRS). If you didn’t have enough in your CPF-SA, the rest would come from CPF-OA....