$3K CPF MA Top Up in 2024 to new BHS.

Like I shared in a recent blog post, the new Basic Healthcare Sum is $71,500 which is an increase of $3,000 from $68,500 in 2023.

This was what my CPF statement looked like at the start of 2024:

After doing the Top Up of $3,000 using PayNow, this is what my statement looks like now:

I decided to do the Top Up earlier than later in the month because I might forget.

Growing old and forgetful.

For those who are not forgetful like me, doing the Top Up a few days before the end of January would mean making a little more in interest income in a savings account.

If AK can do it, so can you!

However, sometimes, it is better to do it your way!

Of course, for those who are still gainfully employed, doing this will also get income tax relief.

It is a win and a win again!

Finally, a question from a reader is worth reproducing here: 

"Just wondering, if I were to also top up my MA to $71,500 in Jan, but as I am still getting monthly CPF contribution, would the top up be refunded without interest as my employer/employee contribution would also flow to MA, or would it go straight to OA/SA?" 

My reply: 

If we are doing voluntary contributions, then, we would have to be mindful of the CPF annual contribution limit. This is because mandatory contributions would count towards that limit. However, when we do Top Ups to our SA and MA, they are independent of that limit.

Reference:
Why top up CPF MA?

Recently published: 
CPF savings, SSBs and T-bills...

CPF savings, SSBs & T-bills in January 2024.

Last year, I published a blog post with a very eye catching title regarding my CPF savings.

"More than $1.1m in CPF savings!"

Well, this time, it is a whimper, in comparison, at less than half a million dollars. ;p

So, how much exactly?

Here is my CPF pie chart at the end of 2023:

Some readers might say that for the first time in a long time, my CPF savings look "normal." ;p

CPF OA savings less than CPF SA savings.

For people who use most of their CPF OA savings to fund a flat purchase, this is probably normal.

Of course, regular readers of my blog would know that most of the money in my CPF OA went to buying T-bills.

Two T-bills.

A one year T-bill is maturing end of this month.

A six months T-bill is maturing in the middle of March.

So, the money will come back.

I will transfer the money from the CPF IA to the CPF OA when it happens.

Then, if yields stay relatively high, I would probably buy T-bills again.

Of course, with CPF funds, I do competitive bidding.

3.5% p.a. is a reasonably sensible bid to place.

I produced a video on this topic before too and, in case some are interested, here it is:

Hope the video is helpful.

Of course, another reason why my CPF savings did not grow as quickly as before was because I did not do voluntary contributions last year.

The money earmarked for that went to buying Singapore Savings Bonds instead which offered higher than 3% p.a. in 10 year average yield.

For those who didn't know this, here is the link to the blog post:

"SSB: Mission accomplished."

I won't be doing voluntary contributions to my CPF account this year in 2024 either.

Why?

I front loaded the "contributions" last year, buying more Singapore Savings Bonds later in the year.

See this blog post:

"SSB: Missions update!"

All as well.

The latest Singapore Savings Bond is offering only 2.81% p.a. in 10 years average yield.

So, that is an easy skip for me.

In any case, I am in no hurry to buy more Singapore Savings Bonds since whatever I want to buy to replace voluntary contributions to my CPF account in 2024 was filled last year.

If the yield remains low for the rest of the year, I will go back to doing voluntary contributions to my CPF account in 2025.

Easy.

Till the next blog post, mask up and stay safe!

If AK can do it, so can you!