The email address in "Contact AK: Ads and more" above will vanish from November 2018.



Featured blog.

1M50 CPF millionaire in 2021!

Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...

Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.


"E-book" by AK

Second "e-book".

Another free "e-book".

4th free "e-book".

Pageviews since Dec'09

Financially free and Facebook free!

Recent Comments

ASSI's Guest bloggers

CPF-SA is not a free lunch but it is not a myth.

Sunday, August 19, 2018

Reader says...

As you were showing your SA amount i was wondering how come it can b higher than the FRS?

I tot SA amount should be capped at FRS.

How did u accumulate $200K+ in your SA?

AK says...

Once our CPF-SA has hit the FRS, no Top Up is allowed.

No OA to SA transfer is allowed either.

However, mandatory contribution and voluntary contribution are still allowed up to the annual contribution cap (i.e. contribution that goes into all 3 accounts) every year.

CPF-SA will also continue to grow from interest earned year after year even after it hits the FRS.

The former Minimum Sum (MS) and, now, the Full Retirement Sum (FRS) are not monsters we should fear.

The FRS has to increase year after year as cost of living increases year after year.

If we push more money into the SA earlier on in life and continue to be gainfully (and legally) employed till we are 55, even after we stop contributing to our CPF, the interest earned in the SA will likely keep pace with the increase in FRS year after year.

Could the interest earned, in fact, be higher than the increase in FRS?

Definitely, it could or, at least, that has been my experience.

The CPF-SA can actually continue to grow without additional effort on our part!

So, is the CPF-SA like the mythical perpetual motion machine?


The perpetual motion machine is a myth.

The CPF-SA is not.

You cannot get something for nothing.

There is no free lunch in this world.

If someone is getting something for free, someone else is paying for it.

The CPF is about helping members to help themselves.

Put nothing in and we get nothing in return.

Put something in and we get something in return.

Feel as if you cannot beat the system?

You are only beaten if you think you are beaten.

Bad AK! Bad AK!


If AK can have more than the FRS in his CPF-SA, so can you!

Relates posts:
1. AK showing off his CPF-SA again?
2. 4 ways to boost our CPF savings.


Disclaimer said...

Hi AK,

I was reading your recent blog about the Hosay CPF account. I just wanted to share that I unexpectedly hit the FRS this month (Cause I have not been tracing but decided to check after reading the blog post). I followed your advice to transfer the first few years of my OA contributions into the SA and that helped alot, I only did the Topup SA for a few years and I hit the FRS. Now I am thinking of putting my annual 7K somewhere else... possibly good company shares for dividend and growth and SRS.. still deciding but definitely will continue to set the money into warchest instead of spending it.

Just wanted to send a message of Thanks.

If AK can do it, so can you! :)

AK71 said...

Hi Disclaimer,

Hosay CPF account!

I like the sound of it!

My CPF hosay.

Your CPF hosay.

CPF makes everything hosay!

Hosay liao lor! :p

haven11 said...

Every time I read the last punt sentence sure reminds me of my childhood cooking show
"If Yan can cook, so can You!" lol

AK71 said...

Hi haven11,

And it was one of my favorite shows. ;p

AK71 said...

Reader says...
I have not had income for long & now feeling extremely stress.
Plus my ignorance on CPF hacks had caused me to lose 20 years of Compound Interest.
Nonetheless, I am happy with the additional $1000 interest from CPF this year.
Just by transferring from OA to SA.
Many thanks to u.

Monthly Popular Blog Posts

All time ASSI most popular!

Bloggy Award