From 1 Jan 2008, you can top up your and your relatives' Special, Medisave and Retirement accounta in the CFP (i.e. SMRA accounts). Relatives include parents, grandparents, spouse and siblings (brothers and sisters).
Last year, top-ups was allowed only for spouses and has to be made by cash.
Two new rules:
(i) You can now top-up using CPF money
(ii) if you use cash, you can usually claim tax relief.
My view: If you make the top up with cash, your relative can earn 4% plus 1% interest. This is the best "risk free" rate that can be earned today.
Not only top ups to help your relatives but also to shift some from OA to SA for 5% risk free. Don't worry about the lock up of the first 60k. It benefits you. I know insurance agents are spreading this unfounded fear if you don't take out to invest in their lousy endowment.NTUC agents are promoting aggressively to get people to invest their CPF in the GRowth Policy with promise of double indemnity insurance which is nothing but a stupid bare personal accident insurance. Customers are unaware that the agents get an increased commission if they sell Growth policy.They are playing with your retirement funds for thier own pocket. Growth policy is riskier than CPF and yet you are not compensated for taking the extra risk except the double indemnity cover. This is unethical. No wonder as many as 80% of people surveyed that they cannot retire because of these insurance agents.
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ReplyDeleteI came across this link on major medical insurance, hope can provide more insights.
major medical insurance