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AK has become a bit more IT savvy and he now contributes to his CPF account using internet banking at home.
OK, you are right.
I admit.
AK has become even lazier in his retirement and will try not to leave home, if possible.
Bad AK! Bad AK!
How to do it?
Er... You mean how to contribute to CPF account using internet banking or how to become even lazier?
Who threw a shoe at me?
Who? Who?
See related post #1 at the end of this blog.
Anyway, I just did my first online voluntary contribution to my CPF account in 2018!
This was to my CPF-MA which, of course, earns 4% interest a year.
For those of us who are still gainfully employed and paying income tax, contributions to our own CPF-MA will also enjoy income tax relief.
For people under 55 years of age who have already maxed out their CPF-SA (i.e. hit the Full Retirement Sum) and for people who are 55 or older, no top up to the CPF-SA is allowed.
However, we can still contribute to our CPF-MA if it has yet to hit the Basic Healthcare Sum (BHS).
The BHS is $54,500.00 in 2018.
Contributing to our CPF-MA if it has yet to hit the Basic Healthcare Sum (BHS) is a good way to earn 4% interest a year.
Of course, in the process, this helps us to enjoy "free" H&S insurance too.
See related post #2 at the end of this blog.
Last year, I said doing a contribution to our CPF-MA at the start of the year would get us an $88 "ang bao" from the government.
For those who still have mandatory contributions to their CPF accounts and hit the BHS in 2017, with the higher BHS in 2018, they can make a voluntary contribution of $2,500 to their CPF-MA now.
This means that they will get a $100 "ang bao" from the government!
What about AK?
See for yourself:
My CPF-MA is lower than the BHS for 2017 because there was a deduction made to pay for my H&S insurance plan last year.
Lacking mandatory contributions from being economically inactive means that I would be able to make a bigger voluntary contribution to my CPF-MA.
So, my ang bao from the government is going to be more than $100!
How much more?
You calculate yourself hor.
Happy New Year!
Related post:
1. Online contribution to CPF.
2. Free H&S insurance in Singapore.
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