Mr Fong Sau Yee suggested giving Central Provident Fund (CPF) members turning 55 the option to transfer their Ordinary Account savings to their Retirement Account first, rather than from their Special Account ("Tapping Ordinary Account first boosts savings"; Nov 24).

We transfer Special Account savings to the Retirement Account first because these have been ring-fenced for retirement.

If a CPF member does not have enough Special Account savings to meet the Full Retirement Sum, savings from his Ordinary Account will be tapped.

He can also choose to set aside only the Basic Retirement Sum in his Retirement Account, if he has sufficient property charge or pledge.

This also allows CPF members turning 55 with spare Ordinary Account savings the flexibility to continue using the funds for other needs, for example, to service housing loans beyond age 55 or pay for their children's education.

CPF members aged 55 and above who wish to increase their retirement savings can transfer additional savings from their Ordinary Account and Special Account to the Retirement Account, or do a cash top-up, up to the prevailing Enhanced Retirement Sum.

These options will enable CPF members to earn the higher Retirement Account interest of up to 6 per cent a year and increase their retirement payouts.

Shaun Goh

Director

Retirement Systems

Ministry of Manpower