2 Ways to Boost Your Retirement Savings with CPF

24 Aug 2018 

​The journey to retirement may be long, but it doesn’t have to be a hard one. With CPF, you can get your retirement savings on the right track to stay ahead. Here’s how.​


1. With risk-free and attractive CPF interest rates

From the moment you make your first CPF contribution to your Ordinary, Special, and MediSave Accounts (OA, SA, and MA), you’re already leveraging on the risk-free and attractive interest rates!

Your OA savings earn up to 3.5% interest* per annum, while your SA and MA savings earn up to 5% interest* per annum.

When you turn 55, a Retirement Account (RA) is created for you where your savings can earn up to 5% interest* per annum. On top of this, you will also be eligible to earn an additional 1% extra interest on the first $30,000 of your combined balance, with up to $20,000 from your OA.  

2. With top-ups and voluntary contributions to CPF accounts

There are also options to further maximise your savings.

Under the Retirement Sum Topping-Up (RSTU) Scheme, you can top up your SA up to the current Full Retirement Sum (FRS) if you are below age 55, or RA up to the current Enhanced Retirement Sum (ERS) if you are aged 55 or above, via cash or CPF transfer. With cash top-ups, you can enjoy dollar-for-dollar tax relief of up to $7,000.^

Another way to grow your savings is by making Voluntary Contributions to all three of your CPF accounts (OA, SA and MA) or just your MA#. You can read more about voluntary contributions here.

If you are self-employed, you can find out more about top-ups and voluntary contributions under the Se​lf-Employed Sch​eme.

*Including an extra 1% interest paid on the first $60,000 of a member’s combined CPF balances, with up to $20,000 from the OA. 

^Up to $7,000 per calendar year and applicable only for cash top-ups up to the current Full Retirement Sum (FRS). Cash top-ups beyond the current FRS will not be eligible for tax relief. In total, you can enjoy tax relief of up to $14,000 per calendar year (maximum $7,000 for self and maximum $7,000 for loved ones). Loved ones refer to your parents, parents-in-law, grandparents, grandparents-in-law, spouse and siblings. To qualify for tax relief for top-ups made to your spouse or siblings, they must not have an annual income of more than $4,000 in the year preceding the year of top-up (e.g. salary or tax-exempt income such as bank interest, dividends, and pension) or be handicapped.

#​Overall personal income tax relief cap of $80,000 applies for cash top-ups and voluntary contributions to CPF accounts.

Information accurate as at 24/8/2018.​

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