CPF Top-Up - Should I start early?

Hi anon,

You will have ample opportunities to top up CPF once you commence gainful employment.

Unless you have a burning desire to achieve your FRS as young as possible, it is better to keep cash on hand. The flexibility of having cash in case of market opportunities, etc, is immense. Topping up CPF is irreversible and your cash just gets locked up. It would also be better to top up SA when you are working, so as to enjoy tax relief on top of the 4% interest.

I would personally just stash my cash into a high interest savings account with no criteria, and continue to save my money, beef up knowledge, and invest.

You already have a 20k investment portfolio. Are you confident of getting 4% pa? If you are, why would you want to top-up your CPF?

If you're confident in your discipline and investing, CPF should not be necessary.

If you're not, CPF is a very safe way to get to a safe retirement income in the future.

The only reason (I can think of) to top-up early, is if you want a huge SA in the future. Since you can only top-up to FRS and let it grow from interest and salary contributions from then onward, then it makes sense to try to hit SA ASAP, so that more of the interest and contributions will go beyond FRS.