Asked 2w ago
It depends on the individual.
You can choose to top-up your CPF (20%/37% of your wage). Assuming you are earning a $500 remuneration for your work, the CPF contribution would be $100/$187 (or in other variations depending on the percentage you wish to contribute). This forced saving is useful for those who want to start contributing towards retirement/housing but unsure and/or do not want to increase potential gains (and risk) by transferring them into investments.
You can also choose not to top-up your CPF with your income, especially if you are just starting out your finance journey and do not have emergency funds, or in debt, or having financial difficulties. In these circumstances, it is best to quickly settle the issue before saving up for retirement.