SINGAPORE – More people contributed to their retirement funds in the first nine months of this year, compared with the same time period last year, said the Central Provident Fund (CPF) Board on Wednesday (Oct 21).

It noted that more than 198,000 top-ups were made under the Retirement Sum Topping-Up scheme, amounting to $1.81 billion.

In comparison, the nearly 148,000 top-ups made under the scheme between January and September last year amounted to $1.47 billion.

The Retirement Sum Topping-Up scheme helps people to build their retirement savings by contributing to their Special Account or Retirement Account, or those of their loved ones.

One-third of those who made top-ups in the first nine months of this year were first-timers, the CPF Board said.

It added that the number of first-timers younger than 35 rose by more than 70 per cent compared with the previous year.

“(This is) a sign that younger adults appreciate the value of growing their retirement savings early with attractive interest in CPF,” the Board said.

It also noted that withdrawals from those aged 55 and older have gone down, with the total amount withdrawn shrinking by nearly 20 per cent.

“It is encouraging to see CPF members place their trust in us by either choosing to keep their savings or put in more money into their CPF accounts, even amidst the Covid-19 pandemic,” said Ms Tan Chui Leng, group director of the CPF Board’s Retirement Income Group.

More on this topic

“Such members can look forward to a stream of retirement payouts that they can count on even in uncertain times.”

Top-ups need to be made before Dec 31 in order to receive tax reliefs of up to $14,000 on next year’s tax assessment.

Those who wish to make CPF top-ups can do so online, via the CPF website or the myCPF mobile app.

“Members are encouraged to top up early to earn more interest on their top-ups,” the CPF Board said.

Source: Read Full Article