Forum: Raise CPF Annual Limit so people can save more
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In 2016, when the Central Provident Fund (CPF) monthly salary ceiling was raised to $6,000 a month, the Government also increased the CPF Annual Limit _ the maximum amount of mandatory and voluntary contributions CPF members can make to their accounts _ to $37,740.
In Budget 2023, the Government announced that the CPF monthly salary ceiling would be raised to $8,000 incrementally over the next three years (CPF monthly salary ceiling to go up to $8k by 2026, Feb 15).
However, it also announced that the annual limit would remain the same.
The decision not to increase the annual limit is a lost opportunity for CPF members to save more for retirement through voluntary top-ups. The Government should consider raising the annual limit by 2026.
Joel Gwynne (Dr)
