Got my PR and thinking to contribute into my CPF

As you had just became a PR, chances are you will have lesser than $60K in your CPF. Topping up into your SA might be a good move, as the first $60K will earn you 5% interest. However, do note the risk that you will not be able to access even a portion of that money until much much later, at 55 for now. Only when you are very sure that you will not need the money, then top up into it.

I had topped up $7K into my SA in Dec 2020, as I thought that I'm single with no need for the money. However, just a few months after that, I run into situation where I might need over $30K in the next 3-4years, and kind of looking back on it now. hahahaha.

Nevertheless, it is still good interest rate, and that how I tell myself that it is short-term pain for super-long-term rewards.

All the best,

JK

Hi Anon, there are benefits and limitations to topping up selectively into your CPF - SA and MA. Of the top of my head, here are some I can list out.

Pros:

-4% guaranteed interest on either accounts

-Tax incentives (but may not be significant at your current tax bracket)

-Little to no risk

Cons:

-Funds in MA can't be withdrawn except to pay for insurance, medical bills (including dental/ pregnancy)

-Funds in your SA can't be withdrawn till at least 55 (assuming you met the retirement sum)

Since you're only 24, you may want to keep your options open.

You may get married, buy a house, spend a hefty sum.

You might not even settle down in Singapore eventually.
Perhpas you may want to think about looking forward within the next 5-10 years and consider how your life would be different then.