Free Guide

CPF SA SHIELDING ALTERNATIVES

Updated based on Budget 2024: Featuring a list of funds that offer returns comparable to the CPF SA’s 4% interest, without locking in your funds long-term while minimising your risks to market volatility.

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“Budget 2024: CPF Special Account closure at age 55 removes overlap, stops ‘shielding’ hack that maximises interest earnings, say experts” – February 23, 2024, Today Online

What will this mean for your retirement?

Starting from 2025, significant changes to CPF will impact your retirement savings. 

The CPF Special Account (SA; 4% interest) will be closed for those aged 55 and onwards, shifting funds to the Ordinary Account (OA; 2.5% interest) and affecting interest earnings.

If you have already shielded your CPF funds, your interest rates will drop from 4% to 2.5% as funds move from SA to OA next year, directly impacting your retirement plans.

This shift isn’t merely about numbers—it’s about the years of planning and hope that now seem on shaky ground.

If you’ve planned your retirement with the 4% interest from SA in mind, this change could significantly derail your financial security. 

It’s crucial to reassess your retirement strategy.

This is a wake-up call: relying solely on CPF for retirement leaves you vulnerable to policy risks. Diversification and proactive financial planning are more important than ever.

So, what now?

The good news is that you still can earn 4% in your Retirement Account (RA), and you are allowed to contribute more to the enhanced retirement sum, now four times the basic retirement sum. However, remember, RA contributions are permanent, and cannot be withdrawn, unlike the Special Account

The lesson here: Ensure your future is built on more than just CPF. 

There are avenues to enhance your retirement readiness against the whims of policy changes. 

Consider adjusting your retirement strategy to include alternative investments.

Dive into our upcoming guide featuring funds with…

Don’t leave the bulk of your retirement nest egg in the OA making just 2.5%, and resign your fate to policy changes that can potentially dismantle your retirement dreams.

REQUEST THE CPF SA SHIELDING ALTERNATIVES GUIDE

Adapt your retirement strategy to these CPF changes and get back on track!

ABOUT REGAL WEALTH PARTNERS

With over 59 years of combined experience, Regal Wealth Partners has served more than 497 clients on their financial journey. 

Our advisors manage a collective portfolio of over $102 million, predominantly serving Accredited Investors as defined by MAS which requires an individual to meet at least one of the following criteria:

• An income exceeding $300,000 in the past 12 months
• Financial assets surpassing $1 million
• Personal assets worth more than $2 million

We specialise in advising mass affluent and HNW clients, providing tailored strategies and solutions that bypass common mass market pitfalls. We adopt a holistic planning approach to build assets, minimise liabilities and risks, and ride through market volatility to outperform the broad market.

We protect clients from product pushing and short-term distractions, focusing on key objectives and needs. Our strength lies in understanding our clients deeply, addressing unspoken objectives, and ensuring a meaningful impact on their portfolios. 

At Regal Wealth Partners, we guide clients towards prudently achieving their ultimate financial goals.