WHY IT MATTERS ,
The saving in the SA may get transferred to the RA, up to the entire retirement amounts, for those over 55, so that people can also get higher interest rates of over 4 %.
However, any remaining SA benefits will be transferred to the OA, which earns the short-term 2.5 per cent interest charge and can be withdrawn when needed.
This implies that the remaining money in the OA did not fall below the SA’s 4 % interest charge.  ,
Minister for Manpower Tan See Leng said that the shift is to “right-site” CPF income.  ,
The higher long-term interest rate may be earned merely from CPF benefits, he said, citing long-term retirement savings.
Additionally, members can choose to transfer their OA savings to their RA up to an Enhanced Retirement Sum ( ERS ), which has been increased from Jan. 1 to Jan. 1st, 2025, to their RA.
According to Dr. Tan, more than 99 percent of CPF members over 55 can shift all of their SA savings to their RA at any time.
” In essence, the SA closure did not stop people from earning the higher long-term attention rate”, said Dr Tan.  ,
They can do this by freely transferring their benefits to the RA, up to the current ERS.
However, he added that if members want to keep the ability to remove these savings at any time, they may remain in the OA and earn the interest rate, “he continued.  ,
Concerning the changes to the HPS, it is anticipated to gain about 100 users a year who have pre-existing conditions that are less intense.  ,
However, according to Dr. Tan, these people may pay higher rates that are proportionate to their higher possibility of claims.
A tiny minority of members with more serious health conditions, such as those already receiving cancer treatment, may not be able to participate in the HPS, in accordance with industry practice, to ensure that it is financially viable and cheap.  ,