How are CPF contributions allocated to OA, SA, and MA for members under 55?

When CPF contributions are made, the funds are distributed across three accounts, each serving a different purpose. For members aged 35 and below, the allocation rates are:

The three CPF accounts explained:

• Ordinary Account (OA): The most flexible account. Can be used for housing (HDB purchase, mortgage payments), education (approved institutions), insurance, and investments (CPFIS). Earns a minimum 2.5% per annum.
• Special Account (SA): Primarily for retirement needs and investment in retirement-related products. Earns a minimum 4% per annum. Funds here are less accessible and are meant for long-term savings.
• MediSave Account (MA): For hospitalisation expenses, approved medical insurance (MediShield Life, Integrated Shield Plans), and certain outpatient treatments. Earns a minimum 4% per annum.

Allocation changes with age:

As you get older, more of your CPF goes to SA and MA, and less to OA:

• Above 35 to 45: OA drops to 21%, SA rises to 7%, MA stays at 9%.
• Above 45 to 50: OA drops to 19%, SA rises to 8%, MA rises to 10%.
• Above 50 to 55: OA drops to 15%, SA rises to 11.5%, MA rises to 10.5%.

Extra interest: The first S$60,000 of combined balances earns an extra 1% interest, with the first S$20,000 earning an additional 1% on top of that.