Dear readers, the recent announcement on the closing of CPF Special Accounts for those aged 55 and above with effect from year 2025 has raised some interest among some CPF members.
From what I have read, I gathered that the interest came about as the closing of the CPF Special Account would mean to some CPF members that they would no longer enjoy the good interest rates that came about by parking their monies in the CPF Special Accounts.
As a quick recap, with the closing of the Special Account from year 2025, monies in the Special Account would be transferred to the CPF Retirement Account up to the maximum Enhanced Retirement Sum and the excess transferred to the CPF Ordinary Account.
In gist, from year 2025 on, there would only be three CPF Accounts: Ordinary, Medisave and Retirement Accounts for CPF members aged 55 and above.
While I noted the above interest, I believe the larger question should be on whether CPF members can still continue to enjoy the fairly good interest rates under the three different CPF Accounts on the longer time, given that it seems to me that many have seem to have taken these decent and generally risk-free interest rates for granted now.
Despite the macro volatilities that Singapore has gone through, the decent interest rates under each CPF account have largely stayed the same and this is good enough for me. And I hope these interest rates can remain minimally the same for the longer term.