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More tapping CPF s stability to stretch savings
40 per cent more topped up their own or their loved ones retirement savings last year compared with 2019
CALVIN YANG, MANPOWER CORRESPONDENT
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More people sought to tap the benefits of the Central Provident Fund (CPF) last year to stretch their savings amid the pandemic s uncertainties.
The number of members who topped up their own or their loved ones CPF retirement savings was nearly 40 per cent higher last year, compared with 2019.
At the same time, people who made voluntary housing refunds nearly tripled over the same period, according to the latest CPF Board figures.
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Amid the uncertainties of the Covid-19 pandemic last year, 36 per cent more Central Provident Fund (CPF) members made account top-ups under the Retirement Sum Topping-Up Scheme, putting in a total of $3 billion in their or their loved ones accounts.
The Board yesterday said $1.2 billion of top-ups were made in the fourth quarter of last year alone.
In total, about 140,000 members boosted CPF savings last year.
More than one in three were first-timers, an increase of more than 50 per cent compared with the previous year, said the CPF Board.
The total top-ups last year were also 40 per cent more than the amount in 2019. Experts said the increase was probably spurred by rising awareness of the benefits of using CPF to save.
Lower monthly payouts
Based on the type of retirement income you wish to have, you can then choose the type of plan that suits your needs.
Other important things to consider would be:
1. How much retirement income do you wish to receive?
2. How much retirement savings should you set aside in order to receive this income every month in retirement?
3. What should you do if the retirement savings you currently have do not meet the above sum?
But before that, let’s look at the retirement lifestyles you could be envisioning and estimate how much that would cost.
What are some desired retirement lifestyles in Singapore?
Congratulations to all of us for making through this tumultuous year.
As much as my year has been a mess, I decided to ensure that my financial health was not in a mess as well.
Since it was the end of the year, I began to do a yearly review of my financial growth to keep track of my progress, as well as to identify areas of improvement.
As I didn’t actively keep track of my Central Provident Fund (CPF) accounts, it was heartening to see how it has grown over time.
If you’re looking to get your finances sorted before the year ends, here are some CPF things you can look at!