CPF cash top-up scheme is a negative sum game

Singaporeans and Permanent Residents who top up their CPF using cash to their’s and dependents’ accounts are able to claim dollar-to-dollar tax relief up to $14,000. However, as the average Singaporeans on a payslip do not have to pay income tax due to the raise in GST, the CPF cash top-up relief hence only benefits the rich.

For CPF cash contributor:
Disadvantage: Topping up the CPF with cash is like throwing your money into a black hole where you will not see any return as the government reserves the rights to manipulate the interest rate, Minimum Sum and Withdrawal Age. CPF returns are not guaranteed as it is dependent on the financial health of the two sovereign wealth-fund companies Temasek Holdings and GIC. If the two companies continue their buy high sell low strategy, nobody will have any retirement money to draw from.


For Government/CPF/Singaporeans:
Disadvantage: Up to $14,000  worth of taxes are uncollected and in-turn increased the obligations of the CPF upon the members’ retirement age.


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