How younger members can get 6% per year from the CPF?

I have regularly blogged about how CPF members should grow our CPF savings and make it a cornerstone of our retirement funding strategy. 

I have shared my own approach and also my results here in my blog which I have been told have inspired many readers to adopt similar strategies.

Over time, some readers have written to me to share as well and I am happy to share one email here today from a regular reader:








AK,

My mother is 77 years old. Her CPF Retirement Account has about $300. I would like to top up her RA account to $60,000 to take advantage of the interest rate of first $30,000 is 6% and second $30,000 is 5%. 

I am planning like in 10 years time the growth will be sizable and relatively risk free. I will get her to nominate me as the beneficiary of her CPF savings. 

What do you think?

Respectfully,
SM

A screen shot of one of  my many blog posts on the CPF.

Hi SM,

I like the idea and you will also get income tax relief for up to $7K Top Up to her CPF-RA each year. Gambatte! ;)

Best wishes,
AK


AK likes this. 





See also:
3 reasons to top up parents' CPF

Find out more about the role of the CPF and enhancements to the CPF here: www.cpf.gov.sg/bigRchat.


Related posts:
1. A cornerstone in retirement funding.
2. Retirement funding for our parents.
3. Parents say don't be stupid to top up SA!
4. 2016 changes to the CPF and SRS.


"If you are 55 years old or older, you will also receive an additional 1% interest on your first $30,000 in CPF savings which means you get 6% interest per annum, risk free!


"It would be a good idea for younger readers to communicate this change to their parents. If at all possible, consider topping up your parents' CPF SA or MA if they do not have that first $30,000 in their accounts." AK