Asked on 16 Jan 2019
Apart from not being able to take it out before 65 years old.
Are there other conditions?
Is 4% really that easy to earn in a no risk back by Government comparable investment?
The max you can top up to SA is via the RSTU scheme (Retirement Sup Top Up), which is up to the Full Retirement Sum for the year. In 2019, this is $176k. So if you have 56k now, you can only top up 120k. After SA is full you can only do a Variable Contribution of $37,740 which will be split to the 3 accounts, but since SA is full, it'll flow to OA. And if MA & SA is full, it can only go to OA as well.
About a month ago we had an AMA with Mr Loo, and he did address some of these concerns.
In summary, like what you said, the main promblem is that people want to enjoy the use of money NOW. Let's say I'm 25 years old. I definitely feel that I will need the money more ringht now, when I'm getting married, having kids, needing to buy a house, etc. Rather than when I'm 65, and all my kids (hopefully) can fend for themselves, and I'm just left with a bunch of cash to spare.
Other than that, some people are afraid the withdrwal age will increase, change in political parties will change how CPF will work... etc.
Edit: Sorry in addition to this, you can't top up 1 million straight because you can only top up a maximum of $7000 (cash) per year
Correct me if I am wrong.
SA you can only top up to $200K? No?
02 Jul 2019