CPF Components

1. Ordinary Account (OA):

Purpose: OA funds are versatile and can be used for housing, insurance, investment, and education.

Housing: OA savings are commonly used to finance the purchase of Housing and Development Board (HDB) flats and private properties. Members can use their OA savings to pay for the down payment and monthly mortgage installments.

Insurance: OA funds can be used to pay for premiums of CPF-approved insurance schemes.

Investment: Under the CPF Investment Scheme (CPFIS), members can use their OA funds to invest in a range of products such as shares, bonds, and unit trusts.

Education: Through the CPF Education Scheme, members or their dependents can use OA funds to pay for educational fees.

2. Special Account (SA):

Purpose: Primarily for old age and retirement-related needs.

Higher Interest: SA typically offers a higher interest rate than OA, encouraging savings for retirement.

Investments: SA savings can also be invested under the CPFIS in retirement-related financial instruments.

Retirement Fund: At age 55, savings in the SA contribute to the Retirement Account (RA).

3. Medisave Account (MA):

Healthcare Needs: MA savings are designated for hospitalization expenses and approved medical insurance.

MediShield Life Premiums: MA is used to pay premiums for MediShield Life, Singapore’s basic health insurance scheme.

Other Medical Expenses: Can be used for various other medical-related expenses, such as surgery, rehabilitation, certain outpatient treatments, and approved medical insurance.

4. Retirement Account (RA):

Formed at 55 Years Old: When members turn 55, an RA is created, and savings from OA and SA are transferred to it up to the Full Retirement Sum (FRS).

CPF LIFE: RA savings are used for CPF LIFE, an annuity scheme that provides a monthly payout for life, starting from the payout eligibility age.