Voluntary CPF contributions For 2019 & Loss Of CPF contribution from Full-Time Employment

On 1 January 2018, I made the following voluntary contribution to my Central Provident Fund (“CPF”) accounts.

1) $2,700 to Medisave account.

2) $2,000 to three CPF accounts (to be credited in accordance to the prevailing distribution as per CPF rate.

As I have reached the existing ceiling of the Medisave account ($57,200 after the first contribution of $2,700), the voluntary contribution of $2,000 (reflected in the above 2) will be distributed to the Ordinary and Special account. This is likely to be my last voluntary contribution to CPF accounts after I made the decision to tender my resignation on 1 April 2019. My official last day of full-time employment will be on 30 April 2019. It does not make any sense for me to make voluntary contribution to CPF accounts without the income from the full time-income.

The current (maximum) contribution is $37,740 per year. The total contribution will be $566,100 for 15 years. The year in which I can withdraw CPF will be 2033. It will be about 15 years in which I can withdraw the CPF monies after deducting the minimum sum which is required under the CPF Act. This is the amount of money I stand to miss with my decision to quit the full-time employment with effect from 1 May 2019 till 2033. I will not regret on such decision. Nothing beats the loss of CPF money (contributed from the remuneration in respect of the full-time employment and employer share and shortfall covered by my voluntary contribution) than my gained freedom from the hassle of the full-time employment). It is better to be happy with the things which I want to do on my accord. Happiness keeps the illness from me.

WTK

Author: firewtk

A middle-age Singaporean currently having a minimalist and simple lifestyle. I am not longer in full-time employment with effect from 1 May 2019. I try my very best to write one post per day on this blog. The purpose is to share my prevailing thoughts to interested readers. It is up to the interested readers to decide whether they want to take action in embarking on the FIRE journey. I do not gain anything from this blog and it is solely for sharing hopefully for the benefits of all interested reader. WTK

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