I am turning 55 this September. I only have 3k in OA. 26K in SA and 53k in MA. I am not working and the most I can top up is 30k to 50k. Should I top up my CPF? - Seedly
 

Retirement

CPF

Asked by Anonymous

Asked on 22 Apr 2019

I am turning 55 this September. I only have 3k in OA. 26K in SA and 53k in MA. I am not working and the most I can top up is 30k to 50k. Should I top up my CPF?

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Kenneth Quek
Kenneth Quek
Level 4. Prodigy
Answered 6d ago

Um. What are your plans for financial support moving ahead? Particularly for age 55-65 since CPF life payouts only start at 65.

Since you are not working, what would be your means of income?

If you have no means of income, then your best bet is to probably rely on CPF life. Keep enough for 55-65 and drop the rest into your CPF RA so it can earn interest asap.

If you have other means of steady income for your later years, then do what you like really. CPF life continues to be a life annuity that the market will find difficult to beat, but you may value liquidity more.

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Ernest Yeam Wee Leong
Ernest Yeam Wee Leong
Level 6. Master
Answered 1w ago

Hi there, you will need to look into the horizon of your money needs.

Since you mentioned that you are not working, you will need money for your spending.

Putting in CPF will get your money locked up and you have no money to spend

Instead of putting into CPF, you can put into other low risk and short terms investment like SSB, fixed deposits etc.

Put in an amount such that the amount you have on hand is able to last you till the investments matures.

I write cool stuff about personal finance and money-saving hacks here.

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Jeff Yeo
Jeff Yeo, amateur Social contributor at School of social sharing
Level 7. Grand Master
Answered on 22 Apr 2019

Considering your current situation then it might be better to invest your money else where or even keep it in a fixed deposit.

It would be locked in for a long time and you might need the cash.

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Tee Hon Eng
Tee Hon Eng
Level 4. Prodigy
Answered on 22 Apr 2019

I think you have to decide whether you would like liquidity.

If you are in good health and unlikely to have any circumstances where you would need large sum of money. That 30k would make around $200 or more difference monthly when you would like to start your CPF life payout.

Assuming you start at 65, your top up would benefit some time when you are 80.

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Ang Yee Gary
Ang Yee Gary
Level 5. Genius
Answered on 22 Apr 2019

It is unlikely that you will be able to withdraw your cpf as you don't meet the minimum sum.

Even though cpf offers high interest rate you have to weigh the pros and cons of leaving the money and not being able to withdraw all of it.

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