Hi anon,
ā
There isn't really an age whereby you should start to top up.
ā
Rather, I will advise that you plan with the future in mind, knowing that, barring any exceptional circumstances, you will NOT be able to touch your monies again till you are 55 at earliest. In the case of MA, you'll probably never be able to touch it again.
ā
I don't know how old you are now, but I have asked CPF board multiple questions before, and sometimes, I get this reply:
ā
"As our administrative practices are updated from time to time (e.g., to align with the market practice), we are unable to say what the administrative procedures would be in 2039.
ā
More importantly, it is not prudent for members to make long-term retirement plans by assuming such administrative procedures remain unchanged."
ā
For context, I turn 55 in 2039. So I think this is CPF board's way of reminding me that things can and will probably change.
ā
If you are awash in funds that you don't ever really need, topping up CPF is probably one way to get risk free returns. Generally, I'd prioritize direct top ups to MA and SA due to the higher interest and tax relief, but MA top ups are subject to the annual limit of $37740/yr, while SA top up is capped by the FRS and separate from the annual limit. If you are employed with CPF, do some maths first so that you'll know how much you can allocate to topping up.
ā
If you have a child, you can even top up their CPF for them, but liquid cash is always king.
Hi anon,
ā
There isn't really an age whereby you should start to top up.
ā
Rather, I will advise that you plan with the future in mind, knowing that, barring any exceptional circumstances, you will NOT be able to touch your monies again till you are 55 at earliest. In the case of MA, you'll probably never be able to touch it again.
ā
I don't know how old you are now, but I have asked CPF board multiple questions before, and sometimes, I get this reply:
ā
"As our administrative practices are updated from time to time (e.g., to align with the market practice), we are unable to say what the administrative procedures would be in 2039.
ā
More importantly, it is not prudent for members to make long-term retirement plans by assuming such administrative procedures remain unchanged."
ā
For context, I turn 55 in 2039. So I think this is CPF board's way of reminding me that things can and will probably change.
ā
If you are awash in funds that you don't ever really need, topping up CPF is probably one way to get risk free returns. Generally, I'd prioritize direct top ups to MA and SA due to the higher interest and tax relief, but MA top ups are subject to the annual limit of $37740/yr, while SA top up is capped by the FRS and separate from the annual limit. If you are employed with CPF, do some maths first so that you'll know how much you can allocate to topping up.
ā
If you have a child, you can even top up their CPF for them, but liquid cash is always king.