1 Jan 2026
SOURCE: CPF Board
The New Year is more than just a time for a fresh start and exciting resolutions. As you take the time to jot down your goals and aspirations, spare a moment to review your finances for the year ahead.
From maximising income tax relief to reviewing your insurance coverage, here are five things to do that can give you an extra head start for the year ahead.
Your CPF interest is calculated monthly and credited on 1 January annually. A great way to begin the year is to review your CPF accounts and see how much additional interest you have earned.
An important thing to note is how your CPF interest can increase steadily thanks to the power of compound interest. This means you can earn interest on your interest, boosting your CPF savings even more. Don't miss out on watching your CPF savings grow every year!
Reviewing your income tax relief eligibility is a good financial practice that can effectively reduce the overall tax you have to pay. Take some time to look through the types of tax relief and rebates available.
For starters, tax relief of up to $8,000 per calendar year can be claimed for cash top-ups made to your Special or Retirement Account.
An additional $8,000 in tax relief per calendar year can also be claimed for cash top-ups made to the CPF accounts of your spouse, parents, parents-in-law, grandparents, grandparents-in-law, and siblings.
To qualify for tax relief when you top up for your spouse or siblings, they must have an annual income of less than $8,000 in the previous year or be a person with disabilities. Find out more about the terms and conditions regarding tax relief.
Reviewing your housing mortgage at the beginning of the year can be a wise financial move that leads to savings in interest payments.
Take a step back to evaluate your financial situation for the upcoming year ahead. If you have plans to spend on big-ticket items such as a housing renovation, you may have to be more conservative in repaying your housing mortgage.
If you are using a bank loan to pay for your housing mortgage, it’s a good idea to periodically review the different housing loan packages offered by the banks. Since interest rates can fluctuate, look out for loan options that reduce your interest amount and lower your monthly housing mortgage repayments.
For those who have taken up a HDB loan, consider making a partial capital repayment of your outstanding HDB loan to either shorten the repayment period or lower your monthly instalment amount.
Making a CPF nomination allows you to determine the person(s) who receive your CPF savings after your passing. Without a CPF nomination, your CPF savings will be paid to the Public Trustee Office for distribution in cash according to Singapore’s intestacy laws (or an inheritance certificate for Muslims).
Your family will then have to apply to the Public Trustee’s Office to receive your CPF savings. This process can take up to six months and includes an administrative fee.
As your relationships and life circumstances can change over time, it is a good idea to review your CPF nomination annually to ensure that it reflects your current wishes.
Take note that upon marriage, any CPF nomination you had made will be automatically revoked. However, a divorce does not revoke a CPF nomination. This is similar to a will, which is not revoked upon divorce.
Health insurance can shield you from hefty hospital bills, but it is also important to select plans with premiums that are affordable and sustainable for you.
As you age, insurance rider premiums, which have to be paid in cash, can increase by up to three times between the ages of 50 and 70 (from $3,000 a year to $9,000 a year for private hospital riders).
Make it a practice to annually review your insurance coverage and consider your health and personal circumstances. For example, have you had additional dependants such as a newborn over the last year? If so, it might be worthwhile to think about getting life insurance coverage.
If you’re looking for a planner to compare and review different health insurance plans, give the Health Insurance Planner a go. This useful tool lets you project how your expenses can change with health insurance, compare your existing coverage with other Integrated Shield Plans, and compare the projected medical insurance premiums of your current and selected plans.
As you outline your personal goals and set your New Year’s Resolution, don’t forget to review your finances at the same time. Dedicating time to evaluate your financial health not only prepares you for the upcoming year but also gives you the motivation to follow through on your goals. This is especially useful if you’ve set clear and achievable targets.
If you’re still not sure where to start, try PLAN with CPF, a financial guidance platform that helps you make informed financial decisions as you navigate through life. From starting your career or approaching your golden years, this useful tool brings together planners and resources – all in a personalised dashboard.
Here’s wishing you and your loved ones a joyful and prosperous new year!
The information provided in this article is accurate as of the date of publication.
