Increase in CPF top-ups amid greater awareness of retirement planning

In first eight months of the year, voluntary contributions topped $3 billion

- Chor Khieng Yuit

Singaporeans are beefing up their retirement nest eggs, with voluntary top-ups to CPF accounts hitting more than $3 billion in the first eight months of the year.

The figure was up 15 per cent on the same period in 2023, noted the Central Provident Fund (CPF) Board on Oct 2.

Voluntary top-ups refer to cash and CPF transfers made to the Special Account (SA) of members aged below 55 or to the Retirement Account (RA) of those above 55.

CPF members can make these contributions for themselves or for their family members to ensure higher monthly payouts in retirement.

Every dollar a member contributes yields a dollar in tax relief, up to $16,000 a year. The top-ups must be made by Dec 31.

The tax relief comprises $8,000 for top-ups to a member's own SA, and an additional $8,000 for top-ups for family members such as parents, parents-in-law, grandparents, spouse and siblings.

The increased voluntary contributions to the CPF in the eight months to Aug 31 come as a survey commissioned by the Ministry of Manpower (MOM) indicated a greater awareness of retirement planning among Singaporeans.

It found that 51 per cent of those polled in 2023 had developed a retirement savings plan, up from 46 per cent when the same survey was first conducted in 2021.

About 40 per cent of those aged 18 to 35 had planned for retirement, up from the 32 per cent in 2021.