How to Grow the CPF OA since the SA will no longer be available after 55.

This article i am writing is with regards to the OA. With SA no longer available after age 55.

1. Regular Contributions from your job : Ensure that you make regular contributions to your CPF OA through your monthly salary deductions. The more you contribute, the more your CPF OA will grow over time. The first $6800 monthly salary in year 2024 will attract 37% contribution to the OA, SA, MA accounts. The first $7400 monthly salary in year 2025 will attract 37% contribution to OA, SA, MA accounts. The first $8000 monthly salary in year 2026 will attract 37% contribution to OA, SA, MA accounts.

Without Housing Loan :

For people that do not have housing loan and your MA is maxed out. Depending on your age before 55, the contribution rate to OA will range from 25% - 29% of the monthly salary subjected to cap at $8000 in year 2026.

1. Maximize CPF Interest Rates: The CPF OA provides a basic interest rate, and there is an interest rate of 3.5% for the first $20,000 of your combined CPF balances.

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3. Investment Schemes: CPF OA funds can be invested in various instruments to potentially generate higher returns than the default interest rates. CPF Investment Scheme (CPFIS) allows you to invest in a range of instruments, such as stocks, bonds, and unit trusts. The potential returns can range from 3.5% - 30% depending on the instruments you used.

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5. Top-Up Schemes: Consider taking advantage of the CPF Voluntary Contribution (VC) scheme, where you can make additional voluntary contributions to your CPF accounts. This can help to enhance your CPF savings over time.

The main target is to grow the OA savings to $500,000 by the time to reach age 55 so that can at least enjoy $12,500 of passive income from OA every year or even more if you are investing in other instruments. Why $500,000. As a salary worker with a family of 4, with $500,000 in my Ordinary account when i am age 55 that generates $12,500 in passive income. I have an additional of $1,000+ to spend every month. It also acts as my emergency funds and i can access it easily if i need to. It serves as my buffer as well.