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Anonymous
If my parents (age 59) want to top up into CPF purely for interest rates (not income tax relief), which account should they top up?
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Elijah Lee
06 Feb 2021
Senior Financial Services Manager at Phillip Securities (Jurong East)
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Pang Zhe Liang
05 Feb 2021
Lead of Research & Solutions at Havend Pte Ltd
You may top up to your parents' retirement account where the monies can earn up to 6% per annum in interest.
More Details: https://www.cpf.gov.sg/members/FAQ/schemes/reti...
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Hi anon,
Unfortunately if your parents want flexibility to withdraw then they have to do 3 account contributions. Topping up to RA is one way.
The money will be split amongst OA/SA/MA. Having said that, if their MA is at the BHS already, then the excess will spill over to OA/SA which can be taken out any time.
Note the CPF annual limit of $37740/yr which the maximum they can contribute. Also note that with this method, there will always be some money going to OA. If they have a high SA balance, then when withdrawing, the money in OA is 'stuck' as SA monies need to be withdrawn first.