Published on 17 Feb 2024

CNA Explains: How will the closure of CPF Special Accounts affect those 55 and older?

NTU Expert Comment: CNA, 17 February 2024

Deputy Prime Minister Lawrence Wong announced changes to CPF at Budget 2024 to address what experts call a "CPF anomaly." The government aims to align the interest rates with the liquidity of funds. Economist Akshar Saxena from SSS@NTU explains that previously, the Special Account allowed withdrawals after reaching the Full Retirement Sum while still offering high returns. Closing this loophole removes the anomaly, ensuring consistency in returns based on liquidity.

Read the article here.