Come January 2025, the CPF Special Account (SA) for individuals aged 55 and over will be closed. Have you considered what to do with the excess savings in your CPF Ordinary Account (OA) once your Full Retirement Sum (FRS) or Basic Retirement Sum (BRS) has been met? One option is to transfer them to your CPF Retirement Account (RA), up to the prevailing Enhanced Retirement Sum (ERS), which earns a minimum guaranteed 4% interest rate. This move will earn you higher monthly payouts starting at age 65. However, bear in mind that this transfer is irreversible. Once transferred, your funds cannot be withdrawn for other purposes and will only be paid monthly when you turn 65.

Maintaining liquidity and investing for higher returns

Alternatively, you can keep your excess savings in your OA. This option will provide you with liquidity and earn a decent interest rate of 2.5% per annum. If you are looking for higher long-term returns, you can also consider investing a portion of...