What about you? Are you also actively saving for your retirement?
Going by the increase in the number of top-ups, more members are taking active steps to save for their retirement.
198,000 top-ups amounting to $1.81 billion
Despite the challenging economic conditions, more than 198,000 top-ups amounting to $1.81 billion were made in the first three-quarter of this year by CPF members under the Retirement Sum Topping-Up scheme, CPFB revealed in a news release.
This is a 34% increase in the number of top-ups and a 23% increase in top-up amount over the same period last year. From January to September last year, there were close to 148,000 top-ups amounting to $1.47 billion.
Many first-time toppers below 35
A third of those who did top-ups were first-time toppers.
A growing number of first-time toppers are below 35 years old. Compared to the same period last year, there is a 70% increase in the number of first-time toppers who are below 35 years old. This is a sign that younger adults appreciate the value of growing their retirement savings early with attractive interest in CPF, CPF Board said in its news release.
Among those below 35 who top-up their CPF funds is 31 year-old Chua Mao Jie who made his first top-up when he was aged 26.
“CPF savings provide risk-free interest that are higher than any investment I can find. Instead of depending on hearsay about CPF, I decided to find out more about it from the CPF website and learnt that it is achievable to hit the retirement sum. I decided to do more by topping up every month whenever I have excess cash,” explained Mao Jie.
Even self-employed persons are making voluntary CPF contributions to build up their retirement funds.
One such person is Grace Lim, 51.
“As a self-employed and being single, it is even more important for me to make plans for my retirement. With regular top-ups, my CPF savings will grow with interest and by the time I am 55 years old, I will have excess above my Full Retirement Sum which will be my emergency fund,” said Grace.
Withdrawals from members 55 and above have gone down
Compared to the same period last year, the amount withdrawn by members 55 and above has gone down by almost 20%.
Group Director from the Retirement Income Group Tan Chui Leng said, “It is encouraging to see CPF members place their trust in us by either choosing to keep their savings or put in more money into their CPF accounts, even amidst the Covid-19 pandemic. Such members can look forward to a stream of retirement payouts that they can count on even in uncertain times.”
CPF is Asia’s top retirement scheme and 7th best in the world
Singapore’s CPF Scheme retains its top spot in Asia, and is ranked 7th globally on the Mercer CFA Institute Global Pension Index .
The Mercer CFA Institute Global Pension Index report examined 39 retirement income systems covering almost two-thirds of the world’s population. Now in its 12th edition, it assesses each retirement system through adequacy, integrity and sustainability.