News

It was announced in Budget 2024 that the Central Provident Fund (CPF) Special Account (SA) for members aged 55 and above will be closed in 2025 ( , Feb 17). With the transfer of funds from the SA, which earns at least 4 per cent annual interest, to the Ordinary Account (OA), members will likely have to look at investing their funds to earn more than the interest of 2.5 per cent currently payable for the OA. Investing comes with risks. It was found that many members who invested their CPF funds lost money in 2023. The authorities should consider allowing existing members who wish to leave their money in the SA to continue doing so. This will help them to build up their nest egg and take fewer risks associated with investing their hard-earned money.