Why I won't be transferring my CPF OA to the SA

RECENTLY, the media has highlighted the Central Provident Fund (CPF) as a way to build up one's savings. Financial bloggers, too, emphasise the CPF's importance from time to time.

One idea out there is how one can transfer one's monies from the Ordinary Account (OA), meant for housing typically, into the Special Account (SA), which pays a higher interest and is meant for retirement.

The transfer is irreversible. But once transferred, one can enjoy the 4 per cent risk-free annual yield on the SA which is better than anything else out there.

Transfer early enough and you might even be able to build up a S$1 million pot in your retirement account by the time you retire in your 60s.

The million-dollar figure can be hit assuming you keep working and contributing to the account, and do not overpay…