Why I won't be transferring my CPF OA to the SA
Gains do not outweigh opportunity cost; contributing cash to the SA a better option to save for retirement
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.
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