$4b in top-ups to CPF accounts so far this year; number of those topping up for the first time doubled from 2020

02-Dec-2021 Intellasia | StraitsTimes | 5:02 AM Print This Post

The amount of top-ups made by Central Provident Fund (CPF) members to their CPF accounts has crossed $4 billion so far this year, surpassing the record $3 billion last year.

More than 220,000 members did the top-ups under the Retirement Sum Topping-Up Scheme (RSTU) as at November this year, said the CPF Board in a statement on Wednesday (December 1).

Of the CPF members who made top-ups for themselves or their loved ones, more than half of them, or over 127,000, were first-timers, the statement said.

“The number of first-timers has already doubled compared with the whole of 2020, and one in two are above 50 years old,” added the CPF Board.

Last year, $3 billion in top-ups were made by 140,000 CPF members under the scheme.

The RSTU allows members to use cash or existing CPF savings to top up their own or their loved ones’ accounts.

For recipients below the age of 55, the Special Account can be topped up to the current Full Retirement Sum, which is $186,000 this year.

Retirement Accounts of those aged 55 and above can be topped up to the current Enhanced Retirement Sum, which is $279,000 this year.

Tan Chui Leng, group director of CPF’s retirement income group, said: “We are heartened that more CPF members are taking concrete steps to save more for higher payouts during their retirement.”

She urged younger members to top-up their CPF accounts earlier, saying this will more than double their retirement savings in 20 years with the attractive interest rate of up to 5 per cent.

The CPF said electronic top-ups can be made via the CPF website or the mobile application for greater convenience and faster crediting.

“Top-ups need not be in a lump sum and can also be made in small amounts via Giro throughout the year,” added the CPF Board.

Giro applications can also be submitted digitally and approved almost instantaneously.

The CPF also encouraged members to top up before the end of 2021 to enjoy tax relief of up to $14,000 for next year’s tax assessment on their cash top-ups.

CPF members get tax reliefs of up to $7,000 per calendar year, equivalent to the cash top-ups made to their own accounts, and up to another $7,000 for top-ups for their parents, parents-in-law, grandparents, grandparents-in-law, spouse and siblings.

https://www.straitstimes.com/singapore/community/4b-in-top-ups-to-cpf-accounts-so-far-this-year-numbers-of-those-topping-up-for

 

Category: Singapore

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