Personal Finance
Can we really "save money" by topping up cash to CPF?
By Turtle_Investor  •  January 12, 2020
老乌龟 有沒有 胡说八道? Based on the recent seedly report "The average annual salary in Singapore is $67,152. This averages out to be $5,596 per month, inclusive of the employer’s CPF contribution." Using this figure as an example, let's see how much tax this Singapore employee could possibly save by voluntarily top up his/her Central Provident Fund (aka CPF). Using the IRAS tax calculator for FY2019, I am going to simulate a very simple example based on this Singaporean worker profile. Profile: Name: Uncle Ah Sheng (UAS) Marital Status: Single Salary: $5,596 per month or $67,152 per year Tax relief: - $1,000 (Earned income relief) - $13,430 (CPF/Provident Fund relief) Personal Income Tax Rebate: $200 Scenario 1 (YOLO, don't bother to top up CPF lah, Cash is KING) Based on UAS salary, he will be paying $1,240.54 for his FY2019 taxes to IRAS after all the standard tax relief based on his profile. Tax payable: $1,240.54 Scenario 2 (Voluntary Contributions (VC) to Medisave account) UAS got his annual performance bonus...
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By Turtle_Investor
Old Turtle is 36 years old (as of 2019) DYI investor (married with 1 Turtle wife and 2 little Turtles) whom started my personal investing journey since 2006 with the main purpose of beating inflation and generating passive income for retirement.
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