18 July 2025
SOURCE: CPF Board
Your parents have supported you growing up. Now, it’s your turn to help them as they prepare for their retirement years, by lending a hand to their retirement planning.
Here are three ways you can do just that:
Kick off the conversation with your parents by getting them to think about the kind of retirement lifestyle they wish to have. Do they want to stay active with community work, are they social beings who relish hanging out frequently with their friends, or an adventurer who wants to see more of the world?
Another aspect to consider: whether they prefer to live simply or with more comforts. One example is the use of public transport versus driving a car. Work with them to categorise their wishes into needs and wants in order to determine an achievable retirement goal.
After setting the goals, there are resources from CPF Board that can help with planning their retirement and healthcare needs.
Plan Life Ahead, Now! (PLAN) with CPF is a one-stop portal for planners and other guidance-related resources, allowing you and your parents easy access to the various tools that can make your planning journey simpler.
From specific events like home purchases to healthcare planning, PLAN with CPF provides tools that cover any needs you might have for what you can do with your CPF savings. For planning your parents’ retirement, you may want to nudge them into thinking about whether they wish to right size or monetise their home to unlock more retirement savings, or consider reviewing their health insurance to ensure premiums remain affordable for them over the long term – especially since premiums spike with age. You can consider guiding them to do legacy planning as well, which includes making their CPF nomination.
You can also give your parents’ retirement savings a boost by topping up their CPF accounts.
If your parents are eligible, tap on the Matched Retirement Savings Scheme (MRSS), which allows senior members with lower retirement savings save more, by matching the cash top-ups made to their Retirement Account (RA). As of 1 January 2025, the matching grant cap has been increased to $2,000 per year, with a $20,000 cap over an eligible member’s lifetime. At the same time, the previous age cap of 70 years has also been removed, allowing more members to benefit from the scheme.
If you make a cash top-up to your loved one that does not attract the MRSS matching grant, you get to enjoy tax relief of up to $8,000 per year (these are separate from the $8,000 for tax relief on top-ups made to yourself). So go ahead to make the moves that count for your family and yourself!
Talking about money may not always be a comfortable topic to broach with your parents, but it is an act of love and care to help them plan for their golden years. Even starting the conversation can help them to feel more supported, and encourage them to consider options that best suit their needs and preferences. So take the first step today!
Information in this article is accurate as at the date of publication.
