Changes to the CPF Act That You Probably Want to Know

Central Provident Fund (CPF) is a foreign term for millennials like me.
For those who are clueless—20% of your salary goes to CPF every month which means we only get to see 80% of our salary.

Don’t worry, you will get your money back once you retire and you can even use it to pay for your house or your medical bills.

You’re wondering why am I even blabbering about CPF on a Wednesday.

Cause my boss told me today that I can transfer some of my CPF to my parents soon enough!

Let me break it down to you.

Image: pcworld.com

After the changes made in parliament yesterday—by the fourth quarter of next year, Singaporeans will be able to help their grandparents and parents save for retirement through CPF transfers, TODAY reported.

What are the requirements?

I know we all want to help our parents since they provided us with everything when we were a kid.

But to be eligible for this transfer, you must have the Basic Retirement Sum of $83,000 in your own accounts and a sufficient property pledge to make up the rest of the full sum.

Okay, let me go check my CPF balance…

Image: fox.com

Okay, nevermind.

Anyways, this amendment will benefit about 340,000 Singaporeans, as mentioned by Second Minister for Manpower, Josephine Teo.

She also mentioned that the retirement adequacy has been “improving for every successive cohort”.

Image: TNP

She also added that the authorities expect seven in 10 active CPF who turn 55 in 2020 to be able to meet their cohort’s Basic Retirement.

For those who want to help out their in-laws

Yes, it is possible too.

You have to reach out to the CPF board and it will be reviewed on a case-by-case basis.

Now you can get in your mother-in-law’s good books.

And for those who have received the money through CPF transfers, you will still be able to keep it even if the property pledge is sold.

For those who have their own private insurance

You can apply to be exempted from setting aside the Full Retirement Sum if your private insurance pays out the same amount as what you would receive under CPF Life (this is when you will receive your hard-earned cash monthly at the age of 65).

This will take effect in the first quarter of next year.

As a millennial, I don’t think it affects us as much but I guess it makes us know how we can help our parents in the future.

And for those who have no clue about CPF, read this!

For now, I am just going to continue to work hard for the moolah.

Image: giphy.com

On a side note, can the age limit be lowered for singles who want to own a house?

Pleaseeeeeeeeeeeeeeeeeeeeeeee!

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This article was first published on goodyfeed.com

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Featured image: TODAY

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