SINGAPORE: A total of S$3 billion in Central Provident Fund (CPF) top-ups were made by 140,000 people under the retirement sum topping-up scheme last year.
This was 40 per cent more than the amount of top-ups made in 2019, the CPF Board said on Wednesday (Feb 3).
The CPF Board said it saw a substantial increase in top-ups of S$1.2 billion in the last quarter of 2020 alone.
This shows that people are "saving and planning for their own and loved ones’ retirement more than ever, even in the midst of the COVID-19 pandemic", it added.
Of those who made top-ups last year, more than one-third were topping up for the first time, an increase of more than 50 per cent compared to 2019. The highest increase was among members below age 35, which was an 86 per cent increase from 2019.
Besides saving more for their own retirement, more members were topping up for their parents in 2020, with a 27 per cent increase compared to 2019, said the Board.
Group Director from the Retirement Income Group, Tan Chui Leng said more members, especially young adults, are realising that topping up their CPF is a “key part of their retirement plan”.
“By topping up in January each year rather than December, members could earn 20 per cent more interest on their CPF savings in just 10 years. As a parent myself, I am glad to see that children too are helping their parents boost their retirement savings by topping up for them,” she said.
The top-ups made up under the retirement sum topping-up scheme comprise both cash top-ups and transfer of CPF savings, and can be made to CPF members themselves or to their loved ones, said the Board.
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Top-ups need not be in a lump sum and can be made in small amounts via GIRO throughout the year. Top-ups can also be done electronically via the CPF website or mobile app.
CPF said members can enjoy tax relief equivalent to the amount of cash top-ups made to their own CPF account, up to S$7,000 per calendar year.
If they are also making top-ups for their family members, they can enjoy additional tax relief of up to S$7,000 per calendar year, subject to terms and conditions.