Anonymous
Topping up parents CPF for match retirement savings scheme
I am thinking of topping up my parents CPF for the government's match retirement savings scheme ( top up $600, govt will match $600).
My parents barely have money in their retirement account and will definitely not reach the retirement sum. Should I still be topping up their CPF to get the match retirement savings scheme?
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Elijah Lee
17 Nov 2021
Senior Financial Services Manager at Phillip Securities (Jurong East)
Hi anon,
I'd top up. At least get the matching $600 first, and then if you can, top up further (both for tax relief and to get the extra interest).
By getting the government to help our parent's retirements through CPF LIFE, we are indirectly helping ourselves.
If the stream of income from CPF LIFE can meet their needs, then you would not need to worry that they are unable to support themselves in old age. If they didn't even have this stream of income, the burden will fall on the family instead, and you'll have to deal with it. This can have an adverse impact on your own plans and finances.
Do yourself a favour and top up. Any amount helps.
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Why not? Even if your parents' CPF accounts do not qualify for the govt's match.
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Yes you should, free money for them, factor in the 4% interest compounded, quite good la.