HOW MUCH CAN I INVEST?
YouYo can invest any amount in excess of $20,000$20,00 in your OA and in excess of $40,000 in your SA. Check your CPF statement via CPF’s website to get a detailed breakdown, which will also showsho you what types of investments, known as CPFISCPFI instruments, you can invest in. But first, you must not be an undischarged bankruptban to qualify to use your CPF savings for investment. If you want to invest money from your OA, you need to open a CPF Investment Account with DBS, OCBC or UOB; this is not necessary if you’re inv investing from your SA.
ike many Singaporeans, civil servant Lynn Wee, 37, shares the burden of paying for her five-room HDB flat with her husband, while supporting two kids and two sets of elderly parents. The couple save whatever is left for the occasional luxury, like an annual holiday. “But we don’t have spare cash to invest and make our money grow,” says Lynn.
The couple knows they are already luckier than many of their peers. “We bought our flat directly from HDB for about $280,000 and our combined monthly CPF contribution is more than enough to pay the instalments,” says Lynn, who knows friends who shell out cash, on top of using their CPF, to finance their more expensive homes.
Currently, your CPF contribution earns an interest of 2.5 per cent per annum in the Ordinary Account (OA) and 4 per cent per annum in the Special Account (SA), Medisave Account (MA) and Retirement Account (RA). But, annual inflation averages about 2.8 per cent per year, eating into your interest earnings.
To help bulk up our retirement funds, the government offers an additional 1 per cent interest per annum on the first $60,000 of the combined balances (with up to $20,000 from the OA).
Lynn has accumulated five-figure savings in her OA, SA and MA. Joking that she is “more CPF-rich than cash-rich”, she wants to start investing her CPF monies under the CPF Investment Scheme (CPFIS) to beef up her retirement fund.
If you’re also keen to invest your “untouchable savings”, here’s how you can do it.