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CPF retirement sum top up scheme for parents
My Mum turns 65 this year. She does not have any income, and I have been giving her a cash allowance of $1000 per month.
Since she can withdraw her CPF savings from 65 years old onwards, I am thinking of depositing the $1000/ month in her CPF account instead to enjoy tax reliefs from RSTU (Capped at $8000 per year). I assume that she can withdraw the topped up amount instantly.
can this be done? Or is there any restriction I am missing?
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Chin Guo Qiang (ITIL4 / CSPO / CSM)
15 Oct 2023
Assistant Vice President, IT Operations at Bank of China Limited
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Yes I dont think she can withdraw the topped up money if she doesnt meet the BRS/FRS? So i think if you still give her 1k a month, she will end up getting lesser if she joins the cpf life or something (is she already in the plan?)
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The money that she can cash out will increase monthly
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She cannot withdraw instantly. Money in CPF is distributed under CPF life and the money paid out depends on which of the 3 plans she choose: standard , escalating, basic
You can get an estimate of the amount of payout using the CPF calculator: https://www.cpf.gov.sg/eSvc/Web/Schemes/LifeEst...
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Good to top up into your mum's RA! Treat it like a high interest bank account (6%). As what the othe...
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Technically this cannot be done unless your mum opt to receive the payouts at age 65. That also meant for monthly payout under CPF Life, not the usual CPF withdrawals.
Do confirm with Central Provident Fund (CPF Board) if you are really unsure for the situation.