Would it be better for me to 1) Contribute to CPF SA to generate a guarantee 4% return and at the same time get tax relief OR 2) Purchase and annuity plan that provides monthly income from retirement? - Seedly
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Anonymous

Asked on 27 Jul 2020

Would it be better for me to 1) Contribute to CPF SA to generate a guarantee 4% return and at the same time get tax relief OR 2) Purchase and annuity plan that provides monthly income from retirement?

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Chuan lee
Level 6. Master
Answered on 27 Jul 2020

Since you are planning for retirement, I would actually go for CPF SA and try to hit enhanced retirement sum. Please do read up on basic/full/enhanced retirement sum in CPF website. Is quite a good plan overall with the reliability of government.

However, if you put into CPF, the money will not be flexible anymore and the fastest you can withdraw is by 55.

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ūüĎć
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Question Poster

27 Jul 2020

Yes. But most of the endowment annuity require us to "lock" our money before our capital becomes guaranteed. So I guess its not much of a difference if comparing it to if I put it in cpf SA I guess? And furthermore cpf SA contribution provides tax relief am I right?
Chuan lee

28 Jul 2020

It will depend on your age. CPF tax relief is up to a cap per year. Please check thru IRAS on whether you have hit your cap! From what I understand, top-up relief up to 7k per year provided you haven't reach FRS yet.
Thank You!
Can you clarify
I wonder if
This is so helpful ūüĎć
What about
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