For those of you who are not savvy, there is a function in CPF online that allows you to transfer it with a click of a button. (Click on attached). There is a red warning sign that says it is irreversible and you should think twice, as money in the special account cannot be used for paying your mortgage or financing your children's education.
It's a well known observation that many foreign-born PRs like to transfer their ordinary savings in CPF to special account to earn higher interest. Special account earns you 4%, this is more than the ordinary account.
This way, when they leave Singapore and give up their PR, they can take out their savings from CPF after taking advantage of the higher interest rate then use the cash to buy a home in their homelands. For them, if they plan to leave Singapore before buying a house, it is the best idea to move all their CPF to special account since, unlike Singaporeans, they can enjoy higher returns then just withdraw it all whenever they want by leaving Singapore.
It is also a fact that many Nepalese Gurkhas like to transfer their money from ordinary to special account to earn higher interest. Almost monthly basis, Gurkhas like to travel to Bishan CPF centre to transfer their money at the E-Lobbies because they don't have computers to do so at their Mt Vernon camp.
Many Singaporeans like us need the money in our CPF for housing, medical and education. Which is the reason we cannot afford to transfer our money to special account.
Someone once wrote that CPF Minimum Sum was Increased to Stop Withdrawals by Baby Boomers.
Click on http://therealsingapore.com/content/was-cpf-minimum-sum-increased-stop-big-withdrawals-baby-boomers
I would like to add on to the fact that many PRs like to put their money in special account which could be one of the reason why there is a huge withdrawal of money from there.
PAP has given out too many PRs to Filipinos, PRC, India and Malaysia in the past and now, PAP is feeling the heat from too many PRs withdrawing their money from there.
PAP and PAP supporters should jolly well know that the first sign of PRs making use of Singapore as a springboard is when they do an irreversible transfer from ordinary to special account.
Alternatively, PAP should limit the amount of transfer done by PRs or legislate by law that these PRs must contribute part of their CPF money in special account to charity.
CJ
TRS Contributor