Should I top up my 40 yrs old non-working spouse CPF who has only 10K in OA, SA and MA each?

Hi anon,

If you are looking at tax relief, then retirement sum topping up (RSTU) scheme can be something to consider; this helps your spouse to get as close to his/her FRS as possible while saving you some tax. With a $10K starting capital in SA, and $7K in top ups every year for the next 15 years, your spouse will end up with around $160K in SA at 55, which is not an insignificant sum at all.

OA to SA transfer is possible also, but I would do so only if I knew I didn't need the funds for housing. There is also no tax relief on that, so just take note.

Retirement income plans can be used to supplement income over and above CPF LIFE in retirement, so it can be considered if you wish to start building a second stream of income early.

Depending on your situation, I'd say RSTU is a very viable option (probably the first option I would pick), followed by either OA to SA transfer, or a private retirement plan at the same time. Do consider topping up MA as well; the monies can be used for medical needs, and excess interest overflows to SA once the BHS is reached, helping your spouse build the amount in his/her SA faster too.

In my opinion, can your other retirement plan generate returns of more than 4%pa to outperform MA & SA? If yes, then I don't see a need to. Assuming since your spouse is not working and I going to depend on you for retirement/future medical bills.

The main reason why I am love CPF cuz it is risk free. But if you can constantly generate returns better than CPF, I don't see a need for top ups.

Another thing to consider is that will it help with your income tax deduction significantly? You'll have to do the math for that. If you're planning to top up, I suggest you do it ASAP. Power of compound interest. Longer the duration, more $$.

Just my 2cents worth. You do you.