This idea got no benefit to the child till age 65. Still care about the child's welfare when child reaches that age
Worst is what will happen if giver unfortunately need the money due to unforeseen circumstances.
First of all, parents generally hope their children will live to age 65 and well beyond.
Needless to say that practically all will live beyond 65 or 55. But that doesn't justify topping up their CPF, unless the giver sees the benefit (assuming it's a good investment vehicle) of receiver's premature death
Or the receiver (when still young) can really benefit from the giver's early demise?
Children with more financially secure elder years in their futures have that much more financial flexibility and freedom before their elder years.
Still need to care about a child when he reaches 55 or 65? If he falls through the cracks before 55 or 65, the top-ups are of no bloody use at all. If giver falls through the crack due to circumstances, his money in the child CPF can help?
Second, it's highly likely more dollars will be available for withdrawal as early as age 55 with a Special Account top up, not only from age 65 onward.
Part of top-up only available at 55 if top-up is sufficiently high. But the child cannot touch it even if he desperately need it or CMI before 55. He will be agonised will money in CPF and may even curse the giver
Third, MediSave dollars can be quite useful at any age.
That's a lousy idea even if it is useful at any age. Child can use parent's MA in most cases, unless parents want to protect their MA as bequest to children.
Fourth, CPF accounts are uniquely globally protected, and wealthy families in particular are quite happy to stuff dollars into CPF accounts, including for their children, for that reason alone.
Far from it, that uniquely globally protected (for that reason alone
) is NEVER the concern for those wanting to top up. It's highly irrelevant here to touch on wealthy families topping up their children's CPF.
Generally speaking I think parents can do a bit better overall with other investment vehicles for their children …..
Can agree that parents can do a bit better overall with other investment vehicles, rather than topping up children's SA, if the parents are savvy enough, but how many? Not many still doesn't justify topping up. If many, topping up would be dumb
but I don't think MediSave deposits (in particular) are the worst idea. Far from it, and there are much worse ideas mentioned in this thread.
Saying that there are much worse ideas does not justify MA deposit
That's running out of idea or justification