[ad_1]
SINGAPORE: More people topped up their Central Provident Fund (CPF) accounts despite tough economic conditions this year, including a growing number of beginners and young adults.
The CPF Board said in a press release on Wednesday (October 21) that more than 198,000 top-ups were made under the Retirement Supplement scheme between January and September, a 34 percent increase over the same period of the year. last year.
Recharges amounted to S $ 1,810 million, 23% more than in the same period last year.
There were nearly 148,000 recharges for a total of S $ 1.47 billion during the January-September 2019 period.
READ: Budget 2020: New Scheme to Help Those with Less CPF Savings Save More
Steps taken by people to increase their retirement funds come amid difficult economic and working conditions brought on by the COVID-19 pandemic.
Like many countries, Singapore’s economy has been hit by the COVID-19 pandemic. The country entered a recession in the second quarter after a nearly two-month “breaker” period. Advance estimates for third-quarter data showed that Singapore’s economy improved slightly after the gradual reopening of the economy, although it still contracted 7 percent year-on-year. More job cuts are also expected as the pandemic continues.
READ: Over 140,000 employers will receive S $ 5.5 billion in Employment Support Program payments starting October 29
“TOPPERS FOR THE FIRST TIME”
A third of those who refilled in the first three quarters were rookies, the Board said.
He also noted that among beginners, a growing number are also under 35, indicating that “younger adults appreciate the value of increasing their retirement savings early.”
“Comparing the first three quarters of this year with the same period in 2019, the increase in the number of first years below the age of 35 was more than 70 percent,” said the CPF Board.
READ: CPF Contribution Rates Will Stay The Same Despite COVID-19 Economic Recession
The recharges under the Retirement Sum Supplement scheme go to the Special or Retirement accounts, which increase the monthly payments of the members during their retirement.
Aside from the increase in the number of Singaporeans voluntarily entering more into their CPF accounts, withdrawals from members 55 and older have also decreased.
“The total amount withdrawn has decreased by about 20 percent in the first three quarters of this year compared to the same period last year,” said CPF.
People who top up with cash are eligible for a tax break of up to S $ 7,000 per calendar year if they do it themselves. Those who do it for their parents, in-laws, grandparents, in-laws, spouse and siblings are eligible for an additional tax break of up to S $ 7,000 per calendar year.
