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"For those under 65, the Basic Healthcare Sum next year will be S$54,500, up from S$52,000 previously, the authorities said." Sou...

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Go hit CPF MS or FRS by age 40!

Saturday, April 8, 2017

Hi AK:

I am currently 37 years old. I am working towards the target of hitting my CPF mininum sum by the age of 40.

The current balance in my SA is about 80k. My OA account balance is zero as I have transferred all my OA to my SA account. I have already hit the max limit for my MA of 52k. After reading your blog, I top up at the start of the year to receive free $88 ang pow. :)

I have fully repay my 4 room HDB loan and me and my wife have more then 6 months of emergency funds. Me and my wife has no other loans or liabilities.

I am thinking of contributing a lump sum cash contribution of 30k into my CPF SA so that the base amount is bigger and compounding at 4% a year means I can probably reach the minimum sum of 181k when I am 40. After that I just let time be my friend and let it do the compounding magic.

I am currently still working as well so I will have CPF contribution as well.

Do you think this is a good idea? I do understand that only up to 7k of cash contribution is entitled to tax relief.

Thanks for your help and looking to hear from you.


Hi HH,

It would depend on whether that tax relief from doing Minimum Sum Top Up (MSTU) is important to you. If it is, limit yourself to a MSTU of $7K a year. This is especially pertinent if you happen to be a high income earner. ;)

Best wishes,

Related posts:
1. VC to MA and get a $88 ang bao.
2. $1.2 million in CPF by age 65?


AK71 said...

From my FB wall:

Yushun Hong:
Also if his income is high, think there is a maximum he can put into his CPF

Our SA is limited by the FRS. It is independent of earned income. The limit is the same for all members.

Yushun Hong:
I meant there is a fixed amount we can contribute to the CPF each year Yes? Like that time you had your monies refunded after you exceeded this ceiling

That is the CPF annual contribution limit. It applies to MC +VC. It does not apply to MSTU to SA.

Yushun Hong:
Ah I see. Thanks for the enlightenment

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