RSTU or VCMA, which is better for 27(F). Should i top up CPF to get tax rebates or use the money to invest. AC 90k

Hey Wong,

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I'm gonna write this at the risk of sounding like a broken recorder, but here goes:

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The decision on whether to use the Retirement Sum Topping-Up (RSTU) or Voluntary Contribution to Medisave Account (VCMA) depends on your individual financial goals and plans.

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The RSTU scheme allows you to top up your own or your loved ones' Special Account (SA) or Retirement Account (RA) to enhance your retirement savings. This option can provide you with more flexibility in terms of the options available to you for your retirement savings and benefits. However, it's important to keep in mind that the money that you top up to your CPF accounts is locked-in till you reach 55 years old.

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The VCMA scheme allows you to make voluntary contributions to your Medisave Account (MA) to pay for your healthcare expenses during old age. This option can provide you with more flexibility in terms of the options available to you for your healthcare savings and benefits. However, it's important to keep in mind that the money that you top up to your Medisave Account is locked-in till you reach 55 years old.

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As for tax rebates, you can use your CPF contributions to reduce your taxable income, but it's important to keep in mind that your money is locked in till you reach 55 years old.

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All the best!

No one size fits all, as its all up to perosnal preference on what you intend to do with the money if they are going into CPF.

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For me personally, i am trying to hit FRS as soon as possible and let it compound as that is my safety net for retirement. So i will always VCMA to BHS and then RSTU to SA on a yearly basis (up to 8k per year just to maximise my tax relief).