S$4,984 is more than half of the interest that was added to my account in the last 5 years (2010-2014).
Power of Compound Interest
The amount of interest given each year has become substantial. Let's just do a simple calculation and take S$70,000 (approximate amount in my CPF-SA), how much would the amount be in 20 years? I will be 54 years old by then and that is just a year before I transfer the amount to my CPF Retirement account. The answer is about ~S$155,000. The amount will have grown more than 2 times. That is the beauty of compound interest. And that is without adding in any employee-employer contributions monthly.
31 December 2036, I should be receiving at least S$6,200 worth of interest from the S$70,000 I have inside my CPF-SA now.
Thank you, CPF Board.