CPF SA time and income lost due to peer pressure.

Definition of "peer pressure":

A feeling that one must do the same things as other people of one's age and social group in order to be liked or respected by them.

(Source: Merriam Webster Dictionary)






Reader says...
In my 20s, I already had the intention of transferring the monies from my OA to SA.

I also intended to make voluntary contribution to my CPF accounts at that point of time.

I told my friends about my intention and they criticised my plan and called it a "stupid" idea.

As a result, I did not execute my plan.

I finally took action when was 38 years old two years ago. 

I transferred the maximum allowed from OA to hit FRS in SA without telling anyone then.






Of course, my OA was significantly reduced after the transfer.

Going forward two years, my OA balance surpassed my SA once again due to mandatory contribution from my active employment.

I have no regrets doing the OA to SA transfer.

I only regret succumbing to peer pressure and not doing this in my 20s.






AK says...
Yes, doing OA to SA transfer in our 20s would make the government work a lot harder in building our CPF savings to meet the FRS much faster.

People sometimes say that 4% interest in the SA is only 1.5% more than 2.5% in the OA.

I always tell them that it is not 1.5% but 60% more!

Add the magic of compounding, it becomes much, much more. ;)






Peer pressure can be a terrible thing.

Some things we should never do despite what our peers tell us.

Some things we should go ahead and do despite what our peers tell us.

If our facts are right and if our reasoning is sound, stick to our plan and ignore the noise.





AK anyhow talking to himself only lah.

I am not peering at you.

I am not giving you pressure.

No peering and no pressure hor.

Related post:
1. Bigger retirement fund with CPF-SA.
2. Much money in SA from the government.
3. Hit FRS in SA by age 32!
4. FRS in CPF SA at age 30?