I keep hearing this recommendation to push more money into their CPF Special Account as a cpf special account investment recommendation. And there are reasons why I think voluntarily doing that is unwise. However, there are genuine benefits for a voluntary contribution.
This article will explore the benefits of voluntary contribution but mainly why there are reasons not to do it as well. Not just that, you can top up family member’s CPF as well. The main benefit is that you enjoy tax relief from your income tax. This will move you possibly to a lower tax bracket.
Currently, the SGS bond rate is 2. This is higher than the fixed deposit rates for your cash of 0. The benefits of topping up CPF SA with CPF OAYou can also transfer your CPF OA monies to CPF SA. The main benefit is that CPF SA’s yield is higher than that of CPF OA, which is 2. So why do I think you should consider carefully not to do this? Once you transfer from cash or CPF OA to CPF SA, you cannot reverse the process.