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.
- 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.
- 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,...