Personal Finance
5 Reasons Why I Just Topped Up CPF Retirement Account of my mum
By Live Rich Life Free  •  January 28, 2023
I just topped up $8k into my mum's CPF Retirement Account today. Let me reiterate 5 reasons why I did so instead of giving cash to her.
  1. Tax Relief
For selfish reason, I would like to enjoy tax relief of up to $8k per calendar year for topping up my parent's CPF Retirement Account under the Retirement Sum Top Up (RSTU) scheme. Assuming my tax bracket is at 11%, a relief of $8k will save me $880 of taxes in cash, which is enough to eat more than 100 plates of $4 cai png (vegetables rice) at the coffeeshop. The tax relief is also applicable to family members such as parents-in-law, grandparents, grandparents-in-law, siblings and spouse.
  1. Compounding growth at 4%
CPF Retirement Account yields at least 4% and up to 6% for senior folks risk-free and guaranteed by the Singapore Government. Monies growing at compounded rate of at least 4% will double in 20 years hence, by leaving cash in CPF RA account,...
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By Live Rich Life Free
The purpose of this blog is for me to share my reinventions of how life should be lived and journal my journey towards financial independence. I believe that life is a story book. Each chapter contains 10 years of our lives. I am moving on towards mid 30s in 2021. As a nobody but somebody, I am in Chapter 4 of my story book. I hope to influence my philosophy of living a rich life freely and healthily with all of you. Embrace the future and empower freedom!
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