Closing of Special Account at Age 55
Finally the Government is closing up the loophole of the CPF shielding for SA. For people who are aged 55 and above in 2025, after meeting the RA full retirement sum, the Special account will be closed and the excess amount in the special account will be directed to the Ordinary account instead.
With this new directive in place, it make sense to top up the special account or transfer from Ordinary to Special account at a young age to take advantage of compounding until age of 55 years old. Why do i say so? So that we can take advantage of compounding by the Government. Although the loop hole is closed for 55 years and above, this will benefit the low to middle income people. For those who believe in CPF as well.
$4000 top up to Skills Future and studies
All Singaporeans aged 40 and above will be given a $4,000 top-up of SkillsFuture credits in May to encourage mid-career workers to refresh their skills and progress in their careers. Below is an extract from Mothership which shows the benefits and lifetime subsidy of 24 months of $3000 (50% of last drawn average pay over 12 months) From what i foresee, a lot of people who are aged 40 and above will be drawn to this and take sort of a break from work to study for full time diploma. Of course it will be subjected to the courses that are available. A lot of polytechnics will definitely benefit from this sudden burst of full time adult learners. My guess is next year, there will be huge influx of students from age 40 and above. People who wants to recharge, take a break and pick up new skills.
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