CPF top-ups rise by 60% to S$4.8 billion last year; members' balances exceed half trillion mark
The Central Provident Fund Board logo seen on a building in Tampines. (File Photo: CNA/Calvin Oh)
SINGAPORE: Voluntary Central Provident Fund (CPF) top-ups reached a new high last year, jumping 60 per cent to S$4.8 billion.
A total of 294,000 people made cash top-ups and CPF transfers to Special or Retirement Accounts, with more than half of them doing so for the first time, said CPF Board in its annual report released on Monday (Jul 4).
In 2020, S$3 billion in top-ups were made.
Special Accounts are for those below 55 years while Retirement Accounts are for those above that age.
From Jan 1, 2022, CPF has increased the cap in tax relief to S$8,000 for people who top up their own accounts. This is up from the previous S$7,000. Those who top up for their loved ones can enjoy another S$8,000 in tax relief.
According to the annual report, the CPF members' balances also exceeded the half trillion mark last year, growing by 9.4 per cent to S$505.7 billion, from S$462.1 billion in 2020.
An interest of S$18.3 billion was paid to members in 2021, up from S$16.8 billion in 2020.
The report on Monday also showed that more money was drawn by members to pay for housing last year.
In all, 996,000 members used S$21.9 billion in CPF savings for housing needs in 2021, up from S$17.3 billion in 2020.
In 2021, CPF had 4.1 million members, up 2 per cent from the previous year.
CPF statistics from 2019 to 2021
| 2019 | 2020 | 2021 | |
| CPF members’ balances | S$425.1 billion | S$462.1 billion | S$505.7 billion |
| CPF interest credited | S$15.5 billion | S$16.8 billion | S$18.3 billion |
| CPF top-ups to Special or Retirement accounts | S$2.1 billion | S$3 billion | S$4.8 billion |
| CPF withdrawn for housing | S$17.8 billion | S$17.3 billion | S$21.9 billion |
| Approved claims under MediShield Life | S$1.03 billion | S$1.05 billion | S$1.2 billion |
| Number of transactions on digital platforms | 62 million | 90 million | 171 million |
| Members assisted via Rejected Appeals Management Protocol (RAMP) scheme | 700 | 3,730 | 8,496 |
Source: CPF
RETIREMENT
Last year also saw about 416,000 members receiving monthly CPF retirement payouts amounting to S$2.2 billion.
Of these, more than 85,000 members are on the CPF Life scheme, which provides lifelong monthly payouts to members when they turn 65.
“In 2021, we made efforts to strengthen this foundation, with schemes to boost the retirement income of members with lower balances and lesser means,” said CPF Board chairman Yong Ying-I.
Ms Yong said the Matched Retirement Savings Scheme was introduced in 2021 to help seniors who have not reached their basic retirement sum to save more for their retirement.
Under the scheme, the cash top-ups made to the retirement account of eligible Singaporeans aged 55 to 70 are matched by the Government, up to an annual cap of S$600.
More than 117,000 members benefitted from S$68 million in matching grants last year, said Ms Yong.
In its report, CPF Board added that 2021 “continued to be challenging for Singaporeans”. The Board said it assisted 8,496 members financial distress by linking them with 40 agencies under the Rejected Appeals Management Protocol (RAMP) initiative.
Meanwhile, about 775,000 claims were approved last year under the MediShield Life scheme, covering S$1.2 billion in hospital bills.
The number of transactions made on the CPF website and CPF mobile application also almost doubled to 171 million in 2021, from 90 million in 2020.
