Asked on 17 Dec 2018
No straightforward answers here.
I will advise to top up MA/SA to enjoy tax relief if the following are met (But not limited to):
1) You will confirm + chop reach FRS at 55 years old, with the projected increment of the minimum sum.
2) You enjoy a "good" tax rebate, meaning your income is on a higher tier tax bracket and not the 1st/2nd bracket for instance
3) You do not need the cash until you reach 55 years old (With assumption #1 is met). You should have reserve monies from other places.
4) If liquid monies is important to you, can consider SRS. At least can withdraw at a penalty for early withdrawals subjected to 100% tax for that year.
If it's just between these 2 options, then i would top-up MA 1st, provided it has not reached the cap and if it fits the following:
"For MA top up (voluntary contribution), your tax relief is given to the lowest of the following:
Voluntary cash contribution directed specifically to Medisave Account or
Annual CPF contribution cap for the year, less Mandatory Contribution (MC)*
Prevailing Basic Healthcare Sum(BHS)^, less the balance in Medisave Account before the voluntary cash contribution."
Reason being, MA currently has more use if you are below 55 - medical, insurance etc. and once you hit the MA ceiling (which will be increased to 60k soon), any future CPF contribution from you and employer will go to SA, which will grow even faster.