CPF Cash Top-Up Special Account: VS Retirement Savings 2025

Introduction

The Central Provident Fund (CPF) is a comprehensive retirement savings system in Singapore that provides various schemes to help individuals save and invest for their retirement. One such scheme is the CPF Cash Top-Up Special Account (CTS), which allows members to receive additional savings from their family members and employers.

Benefits of CPF Cash Top-Up Special Account

The CTS offers several benefits, including:

• Enhanced Retirement Savings: Contributions to the CTS can significantly boost an individual’s retirement savings, especially for those who have not been able to set aside sufficient funds in their CPF Ordinary Account (OA) or Special Account (SA).
• Tax Relief: Contributions to the CTS are eligible for income tax relief of up to S$7,000 per calendar year. This can further reduce the financial burden of retirement planning.
• Flexibility: Members can choose to withdraw their CTS funds at any time, without penalty. This provides flexibility in meeting unexpected financial needs or emergencies.

Eligibility for CPF Cash Top-Up Special Account

To be eligible for the CTS, individuals must meet the following criteria:

• Be a Singapore Citizen or Permanent Resident
• Aged 18 years and above
• Not have been declared bankrupt or undischarged from bankruptcy

Contribution Limits for CPF Cash Top-Up Special Account

The maximum contribution limit to the CTS for 2023 is S$9,000 per calendar year. This limit includes contributions from family members and employers.

Contribution Sources for CPF Cash Top-Up Special Account

Contributions to the CTS can come from the following sources:

• Individuals themselves
• Family members (e.g., spouse, parents, siblings)
• Employers

How to Make a CPF Cash Top-Up

Individuals can make CTS contributions through the following channels:

• Internet Banking: Most local banks in Singapore offer an online banking facility to transfer funds to a CTS account.
• Mobile Banking: Individuals can use their mobile banking apps to transfer funds to a CTS account.
• Cash Top-Up Machine: CTS contributions can be made in cash at cash top-up machines located at CPF Service Centres and selected community centres.
• Cheque: Cheques can be mailed to CPF Cash Top-Up Unit, PO Box 625, Singapore 910014.

Tax Relief for CPF Cash Top-Up

Contributions to the CTS are eligible for income tax relief of up to S$7,000 per calendar year. To claim the tax relief, individuals should declare their CTS contributions in their annual Income Tax Return.

Withdrawal of Funds from CPF Cash Top-Up Special Account

Individuals can withdraw their CTS funds at any time, without penalty. Withdrawals can be made through the following channels:

• Internet Banking: Most local banks in Singapore offer an online banking facility to withdraw funds from a CTS account.
• Mobile Banking: Individuals can use their mobile banking apps to withdraw funds from a CTS account.
• Cheque: Individuals can request a cheque for the withdrawal amount by submitting a Withdrawal Request Form to CPF.

Conclusion

The CPF Cash Top-Up Special Account (CTS) is a valuable tool for individuals to enhance their retirement savings. By leveraging the contributions from family members and employers, individuals can boost their retirement funds and enjoy tax benefits. The CTS also provides flexibility in withdrawing funds, making it a convenient option for meeting financial needs in retirement.