FOR years, CPF members were able to “shield” or prevent the money in their CPF Special Account (SA) from being transferred to their Retirement Account – by investing the money in excess of the first S$40,000 in their SA just before they turn 55.
They subsequently sell the investment and move the proceeds back to their SA after their 55th birthday to enjoy the minimum 4 per cent a year interest, and the option to withdraw at anytime they want as long as they have their cohort’s Full Retirement Sum (FRS) in their Retirement Account (RA).
But this so-called loophole was effectively plugged when Finance Minister Lawrence Wong announced last Friday (Feb 16) during Budget 2024 that the SA will...
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