CPF members are taking active steps in planning for retirement by making top-ups to their own CPF accounts and that of their loved ones. In the first ten months of this year (January to October 2019), the total top-up amount under the Retirement Sum Topping-Up Scheme (RSTU) was close to $1.6 billion. Comparatively, the total top-up amount was $1.5 billion for the same period in 2018. In 2015, the total top-up amount was $934 million and this grew to $2 billion in 2018.
These top-ups, which comprise cash top-ups and CPF transfers, help build up members’ retirement savings. With higher CPF balances, these members would receive higher payouts in their retirement years. More members have also been able to attain at least their Basic Retirement Sum (BRS) in their CPF accounts as a result of the top-ups received. Over the last three years, close to 24,000 members attained at least their BRS after receiving top-ups to their CPF.
CPF Board is also encouraged to see CPF members making more top-ups to their loved ones to help them grow their retirement savings. Between January and October this year, over $330 million top-ups were made to the CPF accounts of their loved ones such as spouses, parents and grandparents, under RSTU. Compared to the same period last year, this marked a $15 million increase in the amount of top-ups to loved ones. Group Director from the Retirement Income Group Tan Chui Leng said “The high interest rates and tax relief have encouraged more members to help their loved ones retire with greater peace of mind. These top-ups need not be large amounts. With interest of up to 5% per annum in the Special Account and up to 6% per annum in the Retirement Account, small but regular top-ups using GIRO can help enhance member’s retirement savings over time.”
52 year-old property agent Mr Low Boon Hin who has been making regular top-ups to his Special Account said “As a self-employed, it is even more important for me to take care of my retirement needs. So whenever I have extra savings, I will top up using cash to grow my retirement savings. Besides myself, I also encourage my family members to take active steps in topping up to their CPF Accounts.”
Members who make cash top-ups to themselves or their loved ones1 like Mr Low can enjoy tax relief2 of up to $14,000 per calendar year. Beyond getting tax relief, CPF Board encourages members to top up early to earn more interest on their CPF savings. Annex A illustrates how members can earn about 20% more in interest on their CPF savings in 10 years by topping up early in January.
To enjoy tax relief for next year’s Tax Assessment, members must make their cash top-ups before 31 December 2019. The fastest and most convenient way for members to make top-ups is via the myCPF mobile app. Annex B shows the steps for making top-ups via the myCPF mobile app. To find out more about the Retirement Sum Topping-Up Scheme, visit cpf.gov.sg/rstu.
1 Loved ones refer to parents, parents-in-law, grandparents, grandparents-in-law, spouse and siblings.
2 To qualify for tax relief made to your spouses and siblings’ CPF accounts, terms and conditions apply.
