Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...
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The following comments are important.
Important enough to be lifted from the comments section to be shared in a blog so that it reaches more readers who are CPF members.
Reader:
Since reading your blog last year (if i only had done so when i first started working years ago!) i have transferred some of my OA to SA and did some cash top up to my SA.
Would appreciate if you can advice on a a dilemma i am facing with regards to whether i should top up CPF for my mum.
My mum is 63 yro and has almost nothing in her CPF. I had asked CPF Board for advice but it would take a very significant top up (>$50k) to even reach BRS.
i) should i top up my mum CPF's RA? I will not be able to help her reach BRS before she's 65.
ii) Should i top her Medisave instead? My consideration is that this can help go towards MediShield premiums and for any possible medical bills in the future.
I am thinking whether i should put the money in investment say REITs to obtain a potentially higher return than 4% (albeit with higher risks)
AK:
If we do have some spare cash, topping up our elderly parents' CPF accounts (whether RA or MA) is a good idea.
We can think of this as making the government help us do a better job of taking care of our parents or that the government is helping to lessen the weight on our shoulders.
If you do not have ample resources to top up both the RA and MA, I would imagine that the MA has priority over the RA.
We do fall sick and this is likely to get more serious with age.
Having the cost of insurance covered and then some will give peace of mind.
For the elderly with limited financial resources, it should not be about what they could potentially gain.
It should be about securing returns which are guaranteed.
Peace of mind is priceless and more so for them.
Related post:
Upsizing parents' retirement adequacy.
You might want to see this recent blog:
http://singaporeanstocksinvestor.blogspot.sg/2017/06/what-should-i-do-with-my-bonus.html
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