X
theAsianparent Logo
theAsianparent Logo
  • Pregnancy
    • Due date calculator
    • I'm pregnant
    • Trying To Conceive
    • Labour
    • After birth
    • Baby loss
  • Parenting
    • Parenting & Play by Friso
    • Parent's Guide
    • Relationship & Sex
  • Ages & Stages
    • Baby
    • Toddler
    • Pre-schooler
    • Kids
    • Pre-teen & Teen
  • Feeding & Nutrition
    • Diseases-Injuries
    • Breastfeeding & Formula
    • Meal Planner
    • Health
    • Allergies & Conditions
    • Vaccinations
  • Education
    • Pre-School
    • Primary School
    • Secondary School
  • Lifestyle
    • Money
    • Travel & Leisure
    • Fashion
    • Home
    • Fitness
    • Contests & promotions
  • News
    • International
    • Health
    • Celebrity
    • Singapore
  • Money Parenting
    • Tips for Parents
    • Tips for Toddlers
    • Tips for Older Kids
    • The 5 Personas
  • TAP Recommends
  • Shopping
  • Press Releases
  • Project Sidekicks
  • Community
  • Advertise With Us
  • Contact Us
  • Become A Contributor
  • VIP

How the new changes to the CPF Act for top ups will benefit Singapore families

3 min read
How the new changes to the CPF Act for top ups will benefit Singapore familiesHow the new changes to the CPF Act for top ups will benefit Singapore families

New CPF Act unveiled last week by Parliament: What is it, and what do these changes mean for you and how you can help support your parents?

Earlier this month, Parliament made changes to the Central Provident Fun when they passed a new CPF Act changing the minimum requirements that members must meet in order to contribute to their parents’ and grandparents’ retirement savings.

The New CPF Act

Under the new CPF act, property purchased using CPF savings counts towards the required minimum savings for the Retirement-Sum Topping Up (RSTU) Scheme to be able to contribute to a family member’s CPF account.

The change means a drastic increase in the number of CPF members eligible to transfer their excess savings.

Previously, only 20% of members qualified, however, with the new act approximately 30% of CPF members, or 340,000 people aged 30 to 70, will be able to make contributions to their parents’ and grandparents’ retirement funds.

new CPF act

There were four MPs who spoke during the debate about the changes with concerns ranging from whether Singaporeans are saving enough for retirement, calls for more flexibility for spouses to transfer to each other and that tax relief would encourage more transfers.

Josephine Teo, the Second Minister for Manpower, addressed each of these points in turn saying that the new act, “will give members more options to strengthen their parents’ and grandparents’ retirement adequacy”. Additionally, that it is already considerably easier for spouses to transfer money to each other.

Furthermore, she said that more and more younger Singaporeans are meeting their retirement goals but these new changes will encourage them to help out their older family members or struggling siblings.

Another concern, raised by Workers’ Party MP Png Eng Huat (Hougang) was if CPF officers will advise members on all their options upon reaching different age milestones.

Teo responded saying, “the CPF Board will advise those who want to make the transfers accordingly.”

new CPF Act

Screencap from Central Providence Fund Board website

What is the RSTU Scheme?

Under this scheme, you can increase your own or family member’s retirement savings through top ups. You can do this via CPF transfer or cash based on the recipient’s age and up to a certain level depending on the person’s relationship to you.

What is the benefit of the RSTU Scheme?

When you top up for others, you help to build their Special Account total up to the Full Retirement Sum (if below 55) meaning that they are earning more interest. When you make cash top-ups, either for yourself or others, you can enjoy a tax relief of up to $7,000 per calendar year. For more information, visit the Central Provident Fund Board website.

Read more: How to have a happy retirement

Sources:

The New Paper, CPF Board, The Straits Times

 

Partner Stories
School Holiday Offers 101 – Awesome Deals Across Shopping, Travel and Dining with Citi Credit Cards
School Holiday Offers 101 – Awesome Deals Across Shopping, Travel and Dining with Citi Credit Cards
Looking for Fun June Holiday Activities? Take Your Kids to City Square Mall to Meet Hello Kitty and My Melody
Looking for Fun June Holiday Activities? Take Your Kids to City Square Mall to Meet Hello Kitty and My Melody
Fun for All Ages: Best Family-Friendly Vacation Spots in Australia This School Holiday
Fun for All Ages: Best Family-Friendly Vacation Spots in Australia This School Holiday
Changi Experience Studio’s ‘A Night at the Airport’ Family Camp and Other Fun Programmes Return to Jewel This June Holidays
Changi Experience Studio’s ‘A Night at the Airport’ Family Camp and Other Fun Programmes Return to Jewel This June Holidays

Got a parenting concern? Read articles or ask away and get instant answers on our app. Download theAsianparent Community on iOS or Android now!

img
Written by

prianka

  • Home
  • /
  • Relationship & Sex
  • /
  • How the new changes to the CPF Act for top ups will benefit Singapore families
Share:
  • Complete Guide to CPF Nominations and How to Make One in Singapore

    Complete Guide to CPF Nominations and How to Make One in Singapore

  • Division of CPF Assets (Monies, House, Investments) after a Divorce

    Division of CPF Assets (Monies, House, Investments) after a Divorce

  • Mum Discovers 'Hole' In Her Baby's Mouth, Rushes To Hospital Before Realising Her Mistake

    Mum Discovers 'Hole' In Her Baby's Mouth, Rushes To Hospital Before Realising Her Mistake

  • "It was like a bad movie." Family of 5 Jumps Off From Their Apartment in Switzerland

    "It was like a bad movie." Family of 5 Jumps Off From Their Apartment in Switzerland

app info
get app banner
  • Complete Guide to CPF Nominations and How to Make One in Singapore

    Complete Guide to CPF Nominations and How to Make One in Singapore

  • Division of CPF Assets (Monies, House, Investments) after a Divorce

    Division of CPF Assets (Monies, House, Investments) after a Divorce

  • Mum Discovers 'Hole' In Her Baby's Mouth, Rushes To Hospital Before Realising Her Mistake

    Mum Discovers 'Hole' In Her Baby's Mouth, Rushes To Hospital Before Realising Her Mistake

  • "It was like a bad movie." Family of 5 Jumps Off From Their Apartment in Switzerland

    "It was like a bad movie." Family of 5 Jumps Off From Their Apartment in Switzerland

Get advice on your pregnancy and growing baby. Sign up for our newsletter
  • Pregnancy
    • Baby
    • Education
    • Events
    • Allergies & Conditions
  • Family Occasions
    • Breastfeeding & Formula
    • Child Safety
    • Health
    • Diseases-Injuries
  • Lifestyle
    • Home
    • Money
    • Feeding & Nutrition
    • Diet & Weightloss
  • Normal Delivery
    • Cesarean Delivery
    • Behaviour
    • Secondary School
    • Formula Feeding
  • Ages & Stages
    • Latching & Concerns
    • Festivals & Holidays
    • Education
    • Pre-teen & Teen
  • More
    • TAP Community
    • Advertise With Us
    • Contact Us
    • Become a Contributor


  • Singapore flag Singapore
  • Thailand flag Thailand
  • Indonesia flag Indonesia
  • Philippines flag Philippines
  • Malaysia flag Malaysia
  • Sri-Lanka flag Sri Lanka
  • India flag India
  • Vietnam flag Vietnam
  • Australia flag Australia
  • Japan flag Japan
  • Nigeria flag Nigeria
  • Kenya flag Kenya
© Copyright theAsianparent 2022. All rights reserved
About Us|Team|Privacy Policy|Terms of Use |Sitemap HTML
  • Tools
  • Articles
  • Feed
  • Poll

We use cookies to ensure you get the best experience. Learn MoreOk, Got it

We use cookies to ensure you get the best experience. Learn MoreOk, Got it

theAsianparent heart icon
We’d like to send you notifications for the latest news and lifestyle updates.