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CPF Shielding Strategy: A Guide for Singaporeans at 55 Years Old

Retirement planning is a cornerstone of financial stability, and in Singapore, harnessing the potential of the Central Provident Fund (CPF) stands as a pivotal strategy.

Essence of CPF Shielding Hack

Approaching the age of 55 signals the creation of a Retirement Account (RA), consolidating balances from Special and Ordinary Accounts. Implementing the CPF Shielding Hack involves a strategic manoeuvre, diverting these balances to optimise interest returns while retaining autonomy over CPF finances.

Special Account Shielding Hack: Maximising Returns

Focused on preserving higher-interest balances, the Special Account Shielding Hack capitalises on the 4.04% per annum interest rate of the Special Account. This tactic involves timely investments in low-cost, liquid funds via the CPF Investment Scheme before reaching 55, safeguarding these balances within the Special Account to sustain growth at the prevailing interest rate post-retirement. Do take note, we are unable to shield the first $40,000 in Special Account.

Ordinary Account Shielding Hack: Flexibility Amplified

Similarly, the Ordinary Account Shielding Hack enables individuals to retain control over their Ordinary Account balances, offering flexibility for property purchases, repayments, investments, or maintaining liquidity outside the CPF LIFE scheme. Timing an investment beyond the first $20,000 of Ordinary Account balances allows individuals to shield these funds from automatic transfer to the Retirement Account.

Key Considerations and Strategic Moves

Timing is crucial for CPF shielding hacks. It means making smart investments before turning 55 and moving quickly after to avoid losing interest. Choosing safe, low cost investments is really important now to protect CPF money.

Balancing Financial Prudence

CPF shielding hacks can help make CPF balances better, but it’s important to think about personal situations. Things like home loans, plans to buy property, and long-term money goals need careful thought. Finding a balance between earning more interest and having enough flexibility helps decide how to use CPF shielding strategies

Concluding Insights
The CPF Shielding Hack is a powerful way to handle CPF money, focusing on getting more interest and flexibility. To use these strategies well, it’s important to plan carefully and understand personal money goals. Smart CPF management can help secure a strong retirement.

Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.

Published By:

Nicholas Low

As an independent financial adviser, I’m passionate with assisting clients in navigating the often complex world of personal finance. With a diverse range of experiences and qualifications, I provide a tailored approach to suit each individual’s unique financial situation.

My aim is to educate and empower my clients, enabling them to make well-informed decisions about their money and work towards their financial objectives. Whether you’re considering investments, planning for retirement, or seeking a better grasp of your finances, I’m here to support you. Let’s connect and begin discussing your financial future.

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  • Financial Alliance Pte Ltd ( “FAPL”) is licensed by the Monetary Authority of Singapore (“MAS”) and allowed to conduct financial advisory activities in accordance with the Financial Advisers Act (Cap. 110) (“FAA”) and the Securities & Futures Act (Cap. 289) (“SFA”) within the jurisdiction of the Republic of Singapore and in accordance with the licenses granted by MAS
  • 鑫盟理财私人有限公司( “鑫盟理财”)持有由新加坡金融管理局(“MAS”)所颁发的牌照，并许可在新加坡共和国境内依据财务顾问法（第110章）和证券与期货交易法（第289章）进行财务咨询等相关业务
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In compliance with the Personal Data Protection Act, Financial Alliance Pte Ltd (“FAPL”) seek your consent to collect and use your personal data (e.g. name, NRIC, contact numbers, mailing addresses, email addresses and photograph) for the purposes of and in accordance with FAPL’s Data Protection Policy, which can be found on FAPL’s website at https://fa.com.sg/data-protection-policy/.

根据《个人数据保护法》，鑫盟理财私人有限公司征求您的同意向您收集并使用您的个人信息。鑫盟理财将根据公司的个人数据保护政策所阐述的用途使用您的个人资料（例如姓名，证件号码，联系电话，邮寄地址，电邮地址和照片）。 该政策可在本公司网站上查寻，网址为 https://fa.com.sg/data-protection-policy/.

By submitting this form, you are deemed to have read and understood FAPL’s Personal Data Policy.

提交此表格，即表示您已阅读并理解鑫盟理财私人有限公司的个人数据政策