Record high of more than S$3.5 billion CPF top-ups made in first three quarters of 2022
The tax relief limit for CPF members who make top-ups has increased to S$16,000 as previously announced.
SINGAPORE: More than S$3.5 billion in Central Provident Fund (CPF) top-ups were voluntarily made by about 200,000 people to their own or their family members' retirement savings in the first three quarters of 2022.
This is a record high, said the CPF Board in a media release on Wednesday (Oct 5), noting that the amount is S$84 million more than in the same period last year.
It also surpasses the S$3 billion in CPF top-ups to retirement savings, made by 140,000 people, in the whole of 2020.
One in four people who made top-ups for themselves or their family members in 2022 has been doing so for at least three consecutive years, said CPF.
"Cash top-ups and CPF transfers to the Special Account or Retirement Account remain popular amongst Singaporeans who wish to enjoy higher returns of up to 6 per cent per annum with zero risk," said the agency.
"With higher balances in their CPF, members can enjoy higher CPF LIFE monthly retirement payouts, no matter how long they live."
CPF members who made cash top-ups to themselves up to the current full retirement sum can benefit from tax relief of up to S$8,000.
They are also eligible to receive another S$8,000 in tax relief if they made top-ups to their family members, which refer to parents, parents-in-law, grandparents, grandparents-in-law, spouse and siblings.
The increase in tax relief from S$14,000 to S$16,000 per year was introduced on Jan 1, as part of measures to simplify top-ups and streamline retirement payouts.
To benefit from the tax relief, CPF said that top-ups must be made by Dec 31, 2022.
CPF members can make top-ups through GIRO or electronically using PayNow QR. Cash top-ups and CPF transfers can be done via the CPF website or its mobile app.
"CPF top-ups do not have to be made in large amounts," said director of the retirement savings department Ong Woei Jiin.
"CPF retirement savings can still compound to a substantial amount over time through small regular top-ups."