Another CPF Question

[JuniorLion]

Here's another thought.

Is it possible to continue to have inflows into your RA even when you start your CPF Life Payouts? If so, is there a maximum you can "top up" your RA yearly?

I understand that money in RA continues to receive 4% interest p.a. So, isn't it a good idea to keep topping up your RA even if you begin your payout?

 

[BBCWatcher]

Is it possible to continue to have inflows into your RA even when you start your CPF Life Payouts? If so, is there a maximum you can "top up" your RA yearly?

Yes, but there’s an absolute cap at the Enhanced Retirement Sum. I’m not precisely sure exactly which ERS applies. I believe it’s the then current ERS whenever you make your top-up, but double check that, of course.

It’s certainly a “lifetime ERS” concept. Once you hit any year’s ERS, you’re done. And CPF LIFE payouts don’t count as a “drain” for these purposes.

I understand that money in RA continues to receive 4% interest p.a. So, isn't it a good idea to keep topping up your RA even if you begin your payout?

It could be a very good idea, but if the top-up is above the Full Retirement Sum then there will be no tax relief. Also, these top-ups must be paid out in (higher) CPF LIFE annuity payouts.

But sure, you can boost your CPF LIFE payouts with top-ups.