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<!-- headline one : start --> CPF cash top-ups meant for retirement
I REFER to last Friday's letter by Mr Jolly Wee, 'Encouraging CPF top-ups', proposing the withdrawal of interest earned on voluntary top-ups to the CPF Special Account. The purpose of the voluntary CPF top-up scheme is to encourage members to make cash top-ups to enhance their retirement savings. It is not intended to provide an income stream available for immediate drawdown. Interest earned on the Special Account should be retained, so it can be compounded and enhance the member's retirement savings. We would also like to highlight that the top-up scheme already contains incentives to encourage participation. Those making cash top-ups to their accounts can enjoy up to $7,000 in tax relief. In addition, if a member makes cash top-ups to family members (parents, grandparents, siblings or spouses earning less than $2,000 in the preceding year), he or she would enjoy additional tax relief of up to $7,000.
Julia Ng (Ms)
Deputy Director, Corporate Communications
for Permanent Secretary
Ministry of Manpower
<!-- headline one : start --> CPF cash top-ups meant for retirement
I REFER to last Friday's letter by Mr Jolly Wee, 'Encouraging CPF top-ups', proposing the withdrawal of interest earned on voluntary top-ups to the CPF Special Account. The purpose of the voluntary CPF top-up scheme is to encourage members to make cash top-ups to enhance their retirement savings. It is not intended to provide an income stream available for immediate drawdown. Interest earned on the Special Account should be retained, so it can be compounded and enhance the member's retirement savings. We would also like to highlight that the top-up scheme already contains incentives to encourage participation. Those making cash top-ups to their accounts can enjoy up to $7,000 in tax relief. In addition, if a member makes cash top-ups to family members (parents, grandparents, siblings or spouses earning less than $2,000 in the preceding year), he or she would enjoy additional tax relief of up to $7,000.
Julia Ng (Ms)
Deputy Director, Corporate Communications
for Permanent Secretary
Ministry of Manpower
