Voluntary CPF Cash Top Up and SRS, do you ?


Ok, so I was reading up on SRS and CPF cash top up. I generally don't like having my cash locked up as I prefer to use it for my own investment.

However, the fact that if I max out on CPF Cash top Up (8k for myself, and 8k for family member) and SRS(15.3k), I can potentially save up to around $6,000 in tax is quite tempting. The SA account will provide a stable 4% interest as well which is not very high, but risk free. I can also choose to invest the monies if I want to. So that's not too bad.

The downside is, I wouldnt see this 31.3k for a long time to come. Money in SRS can be withdrawn earlier but will be subjected to 5% penalty. SRS provides 0.05% interest, thus this definitely needs to be invested.

I am interested to hear from all of you on what's your decision when it comes to utilising the CPF cash top up and srs? yay or nay? and why?

Oh, if you spot any of the mistake about my understanding of CPF cash top up and SRS, do let me know. I am a complete noob in this.


  1. Hi Bro, good topic for discussion. For me personally, I contributed $10k previously (many years back) but regretted my decision, since then I stopped contributing. Reason being the stupid lockup period till age 65 and early withdrawal penalties. With kids to support and also an unstable job that is potentially on the chopping board, I will rather invest it for immediate passive income.

    Also note that the tax relief from SRS is still subjected to a max ceiling of $80K (if I recalled correctly).

    1. Actually same thoughts as you bro. Doesnt make sense to me when I first looked at it. Yeah you are right about the max ceiling, but i dont have so much relief also lah. haha

  2. Hello Happy Reit Investor,

    I top up my Mum's CPF RA on a monthly basis. I also contributed $3k to my MA at the start of 2024 as soon as the ceiling was lifted. I am already maxed out for my SA, so I cannot contribute anymore.

    I also top up my SRS to max $15,300 annually. All of these contributions are to earn income tax relief. Know that the money contributed is not lost. Someday, the monies will come back to you. But the amount paid for income tax won't. :D

    The added bonus in my case is that my company does matching SRS contribution up to $5,000+, so it is like instant 'profit'.

    Hope this information is useful. Cheers!

    1. I like the CPF system, but doing voluntary cash contribution, that's another thing. Hahaha. Oh wow, your company is very nice!


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