I topped up $8k into my mum's CPF Retirement Account via Paynow today.
The transaction and RA account balance are updated instantly in my mum CPF statement.
In my CPF dashboard, my tax relief is also reflected instantly.
Let me share 5 reasons why we should top up the CPF Retirement Account of our parents instead of giving cash to them.
- Tax Relief
For personal financial objective, we could enjoy tax relief of up to $8k per calendar year for topping up our 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 $5 chicken 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...
