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Anonymous

18 Apr 2019

SeedlyAMA

How do I grow my wife’s CPF ?

My Wife is self employed, she’s 48 years old, and she doesnt have any CPF SA or OA savings as we only became PR 2 years ago. We intend to stay in Singapore Long term. she only works part time, and earnings aren’t high, but it’s more than $4000 a year which I believe means that I can’t make voluntary contributions for her?. She makes a contribution which goes to her Medisave each year. Can we grow my wife’s CPF to make make it worthwhile in the period she has left to grow the minimum sum?

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Loo Cheng Chuan

07 Nov 2018

Founder at 1M65 Movement

  • First, marry the right wife. If she spends all her CPF or non CPF monies, then it is an uphill challenge for you.
  • How you would grow your wife’s CPF is the same as how you would grow your own.
  1. Minimise withdrawals in terms of property purchases, medical bills, and or investments etc
  2. Set aside as much as you can on SA for 1M65
  • You should work as hard as possible (even taking up 2 jobs!) so that you can pour as much money as you can into your OA or SA
  • To harness the power of compounding, transfer as much as you can from OA to SA so that you have a higher rate of return and also try not to drawdown from Medisave
  • Hence it is essentially the same for the Man and Wife.

Yes, if your wife's declared income is more than $4k for the tax year, you will not be eligiblle for tax relief. But you are still able to topup her SA. It makes sense to topup her CPF as the first $60k earns an extra 1%, which makes 5% guaranteed return.

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