Baby Steps For Our Retirement Planning – Regular Top Up Of Our CPF Special Account

One of the many stuffs that Mr and Mrs Budget set out to do this year is to top up our Special Account via the Retirement Sum Topping Up Scheme. 

With the receipts from the wedding angpaos recently, Mr Budget has used the receipts and went ahead to top up S$7,000 to his Special Account.

The reason why I do it earlier in the year is to allow the compounding effect to start earlier this year in order to enjoy the interest rate by end of 2020. Of course, we also stand to claim a personal tax relief of the amount contributed.

Mrs Budget will also be contributing to her CPF SA account in the next few weeks when we do our monthly finance reconciliation. 

With the RSTU done, what’s left for Mr Budget this year is to:

  1. Increase Singapore portfolio to S$110,000 from the current S$80,000 level.
  2. Reduction of annual expenses from current S$95,000 to a more manageable S$60,000, or even lesser since the real mandatory expenses we calculated for last year was at around S$35,000.
  3. Start renovation for Malaysia property and then rent it out for rental income to balance off the monthly mortgage payment. Will have to wait for the TOP for the project.
  4. Monthly consistent S$1,000 contribution to Syfe Roboadvisor.

If you are thinking of topping up your CPF SA account to enjoy the tax relief this year, you should probably do it earlier too. 🙂

Also, Chinese New Year is just less than 2 weeks away, if you have not exchange your new bank notes, you should probably do so soon!

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2 thoughts on “Baby Steps For Our Retirement Planning – Regular Top Up Of Our CPF Special Account

  1. Ronald

    Top up special account and see it transferred to RA account on reaching 55.
    If you like the annuity scheme than it would be fine, but if not better think twice.

    Do your own research on CPF annuity to see if it’s fair deal, calculate the break even age and see if it’s worth it.


    1. Mr Budget

      Hi Ronald!

      Thanks for your comment! You are right – we have not done any financial modelling on the CPF annuity to see if it is a fair deal. My gut feeling says that it is better to start the compounding early, and that Singapore will always have our backs and not give us a bad deal with CPF when we retire. Have you done any financial modelling on the CPF annuity? This will be something that we will do soon and will share it here when we have it!


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