facebookHi! I bought my BTO flat 3 years ago and have cleared my OA. I do not intend to sell my flat. I'm thinking of my retirement plan now. Shall I top up my SA account as part of my retirement plan? - Seedly

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Anonymous

16 Sep 2020

Property

Hi! I bought my BTO flat 3 years ago and have cleared my OA. I do not intend to sell my flat. I'm thinking of my retirement plan now. Shall I top up my SA account as part of my retirement plan?

Discussion (7)

What are your thoughts?

Xue Miao

Xue Miao

16 Sep 2020

Level 7·Content Strategist at Seedly

Hello there!

I'm assuming that you're young since you got your BTO flat 3 years ago and cleared OA. (my apologies if I got it wrong!)

A lot of us are apprehensive when it comes to topping up our CPF accounts, especially when we're young and it seems like we're locking up our money.

I think this depends on your investment appetite, and whether you feel you would get a higher rate of return via other forms of investment.

Personally, I think this is a great way to build up your retirement savings. It's not easy to find something as stable and gives such good returns (imo!).

Imagine you're 30 and topped up $10,000 in your SA. This will grow into $26,658.36 if compounded at 4%!

So with that, I would treat this top-up as the bond component of my retirement portfolio. :)​​​

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You can consider topping up your SA with excess cash after paying off liabilities (housing, education, car loans) for tax relief and wealth accumulation.

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