- The Straits Times
Singaporeans voluntarily deposited S$100 million more into their CPF retirement accounts this year compared to last year, the CPF board announced on Thursday (Nov 28).
The total sum of CPF top-ups this year between January and October under the Retirement Sum Topping-Up Scheme was S$1.6 billion, compared to S$1.5 billion last year.
The total sum of top-ups in 2015 was just S$934 million.
Adding money into CPF retirement accounts is a popular way to grow retirement savings by taking advantage of the above-average interest rates: 5 per cent (Special Account) and 6 per cent (Retirement Account).
Apart from putting money in their own accounts, more people also put money into the CPF accounts of family members, including parents, grandparents, siblings, spouses and in-laws, CPF Board said.
The sum of top-ups made into family members’ accounts between Jan and Oct rose from S$315 million last year to S$330 million this year.
CPF Board’s retirement income group director Tan Chui Leng attributed the increase to the high interest rates and tax relief offered on top-ups – up to S$14,000 a year.
The CPF Board said it was “encouraged” to see the increase in top-ups, adding that this showed Singaporeans were “taking active steps in planning for retirement”.