Come the year end holiday season, many readers are probably looking forward to kicking back and spending quality time with family and friends. One thing that usually gets forgotten is to consider voluntarily topping up their CPF. (That is…until it is tax season in March the following year and you see a tax relief available for topping up. Admit it… haha. We’ve all been there and done that.)
(Note for international readers: CPF is Singapore’s superannuation or defined contribution pension system.)
Why bother topping up my CPF?
I know there are mixed feelings amongst many with regard to CPF. Common grouses include “
My money is locked up by the government until my old age” or “
Even if I can take my money out for housing or whatever, I still need to pay it back PLUS accrued interest“.
However, before you complain about money being locked up in CPF, first consider the psychology of the average person. According to
one survey, less than half of respondents save more than 20% of their salary. ( Contrary to popular belief, the survey also showed that a higher percentage of millennials save vs the total population.) This usually leads to inadequate retirement savings....