Retirement Planning: Tips on making full use of your CPF
Retirement Planning: Tips on making full use of your CPF
It is never too early to start retirement planning in Singapore. Some of the common question relating to how to plan for retirement in Singapore are definitely linked to our CPF funds in one way or another.
In this section, we list out content that can help you know more about retirement planning
- How much do we need to retire Singapore
- How retirement blueprint helps one of my clients retire 5 years earlier than expected
- How to plan for retirement in Singapore ( 3 things you can’t do without)
So we are having tops on how to make full use of your CPF, in term of your CPF life payout, CPF retirement account etc.
#1 Using CPF voluntary contribution
To enjoy the attractive interest rate of CPF account, using CPF voluntary contribution to the three accounts is one definitely of the way. The amount is subject to an annual limit which is known as the CPF annual limit and it includes both the mandatory and voluntary contributions.
You can use the Voluntary Allocation Contribution calculator on the CPF Board’s website to find out how much is the allocated to each of the three CPF accounts.
#2 Topping up your parents or spouse CPF account for tax reliefs
If you are giving parents monthly allowances, you can consider to top up their CPF accounts instead of giving them cash. Topping up their account allow the money to earn at a more attractive interest with no risk and at the same time enjoying tax relief for yourself.
Topping up your spouse’s CPF accounts
This tip will definitely benefit non- working spouses who CPF balance is low. By doing a cash top up, you get to enjoy tax relief as well.
#3 Child’s Development account (CDA)
The child’s CDA account is earning an interest of 2% pa and unused funds from the CDA will be transferred to your child’s CPF ordinary account. These funds in the OA account will ensure that your child has a good head start in term of education ( unused CDA will be transferred to Post-secondary Education account then to CPF ordinary account- Age 30) and of course in financing your child’s first home.
Want to find out more how to make use your CPF funds to plan for your retirement. Put down your details in the form below, so that I’ll contact you shortly to discuss how you can do just that:
