A CPF (Amendment) Bill passed in Parliament in November 2021 had set the personal finance community abuzz. That is because CPF is an emotive topic and affects all Singaporeans and Singapore Permanent Residents. Even though the changes were made to simplify the current CPF system, confusion still reign amongst the populace. Several articles have also been published to explain the CPF changes but I thought I can possibly value add by providing some examples and strategies. As each reader’s circumstances differ, peppering it with various scenarios would make bring the changes to life and make them more relatable. In an attempt to keep the article simpler, I will only focus on 3 changes affecting Voluntary Contribution (‘VC’) to CPF MediSave and tax reliefs. Here are the significant changes to CPF MediSave cash top-ups and your tax relief strategy.

1. NEW MEDISAVE TOP-UP LIMITS

From 1 Jan 2022, the amount that CPF members can top up to his/her MediSave (‘MA’) will be determined by just 1 formula:...