Asked by Anonymous
Asked on 26 Sep 2018
Some people mentioned we could top up their CPF to get more tax rebate. Is it a good way to give our parents the allowance? Also would be good to hear more hacks to this
Top up MA is good. Because old people tend to use more medical claim. Plus, CPF MA or SA/RA got higher interest rate.
If your parent not in immediate need of money, CPF top up is good.
27 Sep 2018
Asked my parents if they want me to gave cash or top up CPF. They say cash. The cash helps them deal with their daily expense. CPF too complicated for the elderly to deal with. (They are way pass retirement already)
Allowance for Parent and Tax Rebate need not be done together.
Usually allowance are for Parents lifestyle expenses.
You can enjoy tax relief of up to $7,000 per calendar year if you make cash top-ups for your parents, parents-in-law, grandparents if your income tax requires you to do so to pay less tax.
Topping up Retirement Account for Parents if the FRS amount is not met is more for their retirement more then for the present usuage.
And the CPF Life withdrawal starts only at age 65, so whats gonna happen to them before that age without your allowances?
Give your parent allowances as usual and try to grow their retirement income with CPF when you can.
Hope my reply helps.
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27 Sep 2018