Is it wise to top up $ in my children special account?

Hi Vivian, I personally wouldn't.

I'd prefer to give my children additional income or capital when they're younger and not only money accessible from 65 onwards.

Do note that any top up contributions to SA will form the first layer of your child's retirement account when they turn 55. And will only be paid out as part of CPF Life at 65.

But this is also something we're just guessing. The rules of CPF can change and I prefer to have more control.

I'd instead plan for their higher education as well as provide them capital or income to start a business or take risks when they're young adults.

I can only wish I didn't have to worry about paying for my university edcucation or having a liveable income. I'd probably be a graduate of performing arts in Juilliard and take my chance at Broadway by now.

But alas, such is life. I want to provide opportunities to my kids and grandkids that I didn't have. I want to give them as much power as possible to achieve whatever dreams they have. And this is most crucial when they're younger.

So I hope you reconsider using CPF as a tool to provide this for your children because it wouldn't work and we don't know how the system would be like 50 years from now.

It depends on your financial situation. If you have sufficient spare cash that you don’t reasonably foresee yourself using, this is a great idea due to the compounding effect.

Further, it gives your children a head start in their retirement planning, as this acts as a safety net.