Happy New Year 2026!
I am happy to wake up in a fresh year knowing that interests earned in 2025 have been credited to my CPF accounts today.
As the CPF website is on maintenance from 12am to 8am today, the first thing I did after waking up is to check my CPF balances.
Pleased to receive more than $22k of free money!
Another important step in the journey towards financial freedom and retirement.
Even though CPF monies do not seem to be like real monies, I believe they are still illiquid monies that can be used to fund our retirement in our late lives, purchase properties, pay for education fees of children and pay medical bills or insurance.
Here are my CPF interests for 2025:
In total, I received $22,003.25
This is an 7.5% increase from $20,459.49 for 2024.
CPF OA funds can be used to purchase properties or pay for monthly mortgages. Excess above the full retirement sum can be withdrawn at age 55. Hence I believe that CPF monies are still our monies.
The interest of $2.9k earned from Medisave account can easily cover the premiums for Careshield life and Medishield life. In a way, it is possible to enjoy free insurance by using passive income from CPF savings to cover the insurance premiums. This can be achieved if we bother to top up our own medisave account and strive to hit the maximum Basic Healthcare Sum limit of $79k in 2026 to let the 4% interest rate do its compounding work.
I am certainly satisfied with this source of passive income which certainly boosts my CPF total and net worth on the first day of a brand new year.
2 comments:
Your CPF balance is very impressive for someone in his late 30s!
I'm assuming you are funding your property purchase with cash?
Quite surprised to see that the OA balance is not invested and just earning the 2.5%, very conservative approach for someone who has yet to hit 40.
Thanks. I have no intention to invest my OA as it could be used for property down payment. I have managed investments in SRS and cash hence does not want another investment portfolio.
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