Never too late to compound your SA and save on taxes

I started Retirement Sum Topping-Up Scheme (RSTU) or topping up my child’s SA in Sep 2019. Working out the sums, I have seen how small contributions over a long period of time could substantially snowball into a big sum. What if I look further beyond the OA to SA transfer and also do a cash top-up on a frequent basis? There is still a good 20-30 years before I reach 55 or 65. I am not too late in the game to let the money roll.

Moreover, cash top-ups in the preceding year under the CPF RSTU to your Special Account (below age 55); or Retirement Account (55 and above) enjoys up to $7,000 tax relief from your assessable income.

Starting from Sep 2019, I will be contributing $100 monthly to my SA as well. It is a small and manageable amount. Also, this will translate to an annual $1,200 in tax reliefs for my self. With this, I will be maximising my CPF returns even more and will reach Full Retirement Sum (FRS) even sooner.

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