Do you top up your CPF? Is it important or much better to top up compared to just letting them be? I'm worried that by not doing anything is wrong?

Hi anon,

I do top up CPF, even as a self employed. I do both VC and RSTU top ups.

Both top ups accord me tax relief. So that's one plus point. I also know that RSTU monies will definitely go to RA and can never be withdrawn. So I'm just forcing myself to save an additional $7K/yr on top of my private retirement plan and VC contributions for my retirement. Given the fact that CPF monies are protected from creditors, I know that I will have some monies for retirement no matter what.

Interest rates have been persistently low but the worst that can happen is that MA/SA/RA interest gets revised downwards. Currently, legislated minimum interest is 2.5% p.a. so OA will at least hedge inflation and it will require a change in legislation for that to change. Floor interest rate for MA/SA/RA is 4% and that has been extended till end 2021 so I know I'll get it for at least another year. I'm happy with the fact that I have a safe haven for part of my wealth. I won't be surprised the floor interest rate gets lowered, but not the legislated minimum interest.

Yes I do top up CPF, under RSTU $7k , you can Google about it.

Good Interests rates (4% currently), risks free, tax rebate.

Apart from the above benefits, this is with assumption I will be a worker, meaning i draw a salary per month with CPF contribution. By topping up my SA under RSTU, the compound interests and projected CPF LIFE FRS, I could probably hit at 50 years old just by SA alone at that year. This is also with assumption that I do not use any Medisave (That will cut by 1-2 years).

Nothing wrong not doing anything as you may have other commitments or plans. CPF strategy or not, have a plan on how to retire happily without worrying about financials.