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Anonymous

17 Dec 2019

∙

Should I use cash to top up CPF account or to repay HDB loan?

Assuming I am putting aside 7k yearly, which is a better option? which one should take priority and why?

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Kenneth Quek

17 Dec 2019

If you have the money, from a numbers standpoint, this is a no-brainer.

HDB loan is 2.6% CPF Top up (SA or MA) is 4%

Clearly your money will work harder with CPF. No question.

The only question is whether you are emotionally okay with being in debt, or you just like to pay off your debt earlier.

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John Smiths

16 Dec 2019

Tax at Local bank in Singapore

Cash to top up CPF Special or MediSave Accounts gets you tax relief and builds up your retirement funds that you can only use years down the road (earn 4% to 5% interest pa depending on your CPF balances). Repaying the HDB loan with the same cash amount does not get you tax relief and you save paying 2.6% pa.

Totally different purposes. But I would go with topping up CPF Special or MediSave Accounts if you can put aside S$7,000 yearly.

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Pang Zhe Liang

16 Dec 2019

Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

It depends on time value of money and how you intend to plan for your future.

If you use CPF for in...

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