Understanding the CPF (complicated) system

BF and I were having a Whatsapp conversation one day.

Me: BB, I read that got people transfer their funds from OA to SA, maybe we should do it leh! Got higher returns.

BF: Huh is it? Never hear before leh. Then transfer already can transfer back anot?

Me: Er, don’t think so leh.

BF: Then next time want to buy house how?

Me: Er….

BF: Better check first. Then decide what we want to do.

Me: Okok, I read more…

We continued discussing even further and eventually we decided that there was too much to discuss. After gathering all the information I have found online, I have arrived at a few conclusions.

1) The CPF website is super chapalang (disorganized).

In order to get a specific piece of information, I needed to click a few links before reaching my destination. Sometimes even go one big round and then end up at the place where I started. It is like weaving through a maze. Haiyo.

2) Once you master the CPF system, it is hard to forget it.

In fact, it would seem like everything would fall into place. You will automatically know what you need to do in order to use the CPF to your advantage.

3) Do not just limit your knowledge to the CPF website. 

Information about CPF is boundless. Knowledge is power, but applying your knowledge is a different thing entirely. Do your research and see what people are doing with their CPF accounts. And adopt the approach that would work best for you.

That being said, on the same weekend, BF and I sat down in front of the PC to analyze the CPF system. Funny how other couples go for movie dates but ours is to study the CPF. Lol.

I’ve opened a new category in my blog named as “The CPF system”. Subsequent blog posts about the CPF will be placed in this category. So if you want to know more about the CPF and how I utilized this to control my finances, please click here. I hope that it would be able to give you some insight and you’ll be able to find what you need.

Thanks for reading!

Miss Niao xoxo

Author: Miss Niao

Hello! I blog about financial matters and things that average people can do to have a better retirement. I want to inspire people to take control of their money and have a better understanding about it. If you are interested to know more, follow me @ missniao.wordpress.com! :)

5 thoughts on “Understanding the CPF (complicated) system”

  1. I think its really awesome that you are having this conversation/discussion with your partner at this age and asking the right questions. More importantly, it really demonstrates emotional maturity.

    SG’s defined contribution pension (CPF) system may not solve every social security issue but it is a pretty decent tool to provide a baseline/reserve pool to fund retirement; whether it is adequate or still relevant for now would be another story for another day.

    Some questions i would ask will include why does CPF need to install a accrued interest mechanism when we utilise OA to finance our mortgage and are the interest rates for OA, SA and MA sustainable? Have fun exploring the system/topic and look forward to your further posts on CPF.

    Liked by 1 person

    1. Hello Wabi,

      Thank you for your comment! I agree with you, and my thoughts on the CPF system is that since it is going to stay, and I’m not intending to go away, then all the more I can only try to make best of this situation than let time slide by.

      Those are interesting questions. I have never really thought of the purpose behind enforcing the accrued interest mechanism. Perhaps it is to discourage people from using their OA funds if they are not financially savvy enough? Cash can be used in many different ways, but may not be well nurtured by everyone.
      As for the interest rates for our CPF accounts, I am hoping (and praying) that the rates are meant to at least hedge inflation. I’m counting on the government on this one. :p

      Nevertheless, your comment has invoked some inspiration for new blog entries. I was actually wondering if my entries about the CPF system were helping anyone, because they aren’t the most popular posts in my blog. Thank you for your comments, I look forward to blogging more about the CPF. ^_^

      Miss Niao xoxo


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