A head start in retirement planning

You can give your child a head start in retirement planning via the CPF Topping-Up Scheme.


Savings in the SA are safeguarded for retirement and these savings will provide your child with a foundation for their retirement.


You can consider topping up your child's SA using their hongbao money as well. If you top up their SA with $500 annually over 10 years, it will have earned more than $1,500 in interest. By topping up earlier in the year (for example during the Chinese New Year period), you will also earn more interest, as compared to topping up in December.


Other options include making voluntary contributions to your child's Medisave Account (MA). Savings in the MA can be used to pay the premiums for MediShield Life and Integrated Shield Plans.

You can also maximise your child's Child Development Account (CDA) returns through dollar-for-dollar matching. The CDA monies will be rolled over to his Post-Secondary Education Account which earns 2.5 per cent, and then to his CPF Ordinary Account when he turns 30.

A version of this article appeared in the print edition of The Sunday Times on April 02, 2017, with the headline 'A head start in retirement planning'. Print Edition | Subscribe