As we look back on our finances in 2016, many of us may have forgotten about our CPF savings and how much we have been contributing over time. Here are 3 ways you can change this and take a more active approach in managing your CPF savings in the coming year:
1. Keep track of your CPF balances to ensure your housing, healthcare and retirement needs are met
From paying for your home to your hospital bills, you may have used your CPF savings for a variety of expenses without realising it. It is important, however, to ensure that you continue to have enough to meet your housing, healthcare and retirement needs for the many years ahead.
For instance, your CPF OA contributions will decrease as you age, so it is important to check and ensure that you have sufficient OA savings to pay for your housing instalments. Using your OA savings for your housing also means less for your retirement. You may want to consider topping-up your CPF to grow your retirement sum.
2. Learn more about the various schemes available to you during retirement
When it comes to retirement, it is good to be prepared for the major decisions you have to make eventually. If you are in your 40s or 50s and nearing retirement, take some time to read up on withdrawals from your CPF at 55, the various retirement sums, and the different types of CPF LIFE plans. Only with a thorough understanding of the applicable CPF schemes can you make an informed decision that best suits your needs.
3. Make a CPF Nomination to ensure your CPF savings are distributed according to your wishes
Life can be filled with uncertainties and an unfortunate event may strike when you least expect it. Ensure that your CPF savings are distributed according to your wishes by making a CPF Nomination early. This makes the process easier for your loved ones as well when the time comes. Even if you have previously made a nomination, be sure to review it regularly to reflect the changes in your circumstances such as marriage or the birth of a child.
Information accurate as at 30 December 2016.