X
theAsianparent Logo
theAsianparent Logo
Product GuideSign in
  • SPF 2023
  • Pregnancy
    • Due date calculator
    • I'm pregnant
    • Trying To Conceive
    • Labour
    • After birth
    • Baby loss
  • Parenting
    • Parent's Guide
    • Relationship & Sex
  • Child
    • Newborn
    • Baby
    • Toddler
    • Pre-Schooler
    • Kid
    • Pre-Teen & Teen
  • Feeding & Nutrition
    • Diseases-Injuries
    • Breastfeeding & Formula
    • Meal Planner
    • Health
    • Allergies & Conditions
    • Vaccinations
  • Education
    • Pre-School
    • Primary School
    • Secondary School
    • Primary School Directory
  • Lifestyle
    • Money
    • Travel & Leisure
    • Fashion
    • Home
    • Fitness
    • Contests & promotions
  • News
    • International
    • Health
    • Celebrity
    • Singapore
  • Aptamil
    • Immunity
    • Intelligence
  • TAP Recommends
  • Shopping
  • Press Releases
  • Project Sidekicks
  • Community
  • Advertise With Us
  • Contact Us
  • VIP

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

3 min read

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
5 Reasons to Get Excited About Asian Representation on Disney+’s American Born Chinese!
5 Reasons to Get Excited About Asian Representation on Disney+’s American Born Chinese!
Great ideas for gifts for Chinese New Year 2023!
Great ideas for gifts for Chinese New Year 2023!
Learn Tech and Media Skills, Gain Industry Exposure and Build a Portfolio. Here’s How Your Child Can Benefit from an Infocomm or Media CCA!
Learn Tech and Media Skills, Gain Industry Exposure and Build a Portfolio. Here’s How Your Child Can Benefit from an Infocomm or Media CCA!
Korean Stars Take Center Stage at Disney Content Showcase in Singapore
Korean Stars Take Center Stage at Disney Content Showcase in Singapore

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

  • I Try Tracy Lee's Hack for Egg Tarts and It's So Easy That Even Kids Can Make it

    I Try Tracy Lee's Hack for Egg Tarts and It's So Easy That Even Kids Can Make it

  • ‘She Really Thought I Was Very Stupid’: Belinda Lee Reveals Childhood Difficulties and Giving up on Herself

    ‘She Really Thought I Was Very Stupid’: Belinda Lee Reveals Childhood Difficulties and Giving up on Herself

  • 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

  • I Try Tracy Lee's Hack for Egg Tarts and It's So Easy That Even Kids Can Make it

    I Try Tracy Lee's Hack for Egg Tarts and It's So Easy That Even Kids Can Make it

  • ‘She Really Thought I Was Very Stupid’: Belinda Lee Reveals Childhood Difficulties and Giving up on Herself

    ‘She Really Thought I Was Very Stupid’: Belinda Lee Reveals Childhood Difficulties and Giving up on Herself

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 2023. 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.