More Singaporeans Can Transfer CPF Funds To Parents

11/7/2017 2:03:51 PM
written By : Team India Se Print

More Singaporeans will be able to help their parents and grandparents save for retirement via Central Provident Fund (CPF) transfers following changes to the CPF Act passed  in Parliament on Nov 6.

Under the new rule, people will be able to transfer funds from their CPF account to their parents and grandparents as long as they have the basic retirement sum in their account and a sufficient property charge to make up the rest of the full retirement sum. Currently, they are allowed to transfer funds only if they have the full retirement sum in their account. The basic retirement sum is half the full retirement sum. For those turning 55 this year,  the full retirement sum is $166,000, while the basic retirement sum is $83,000.

“About 20 per cent of CPF members aged 30 to 70 meet the current thresholds to make transfers to their parents and grandparents,” said  Mrs Josephine Teo, Second Minister for Manpower. “With the amendment, 30 per cent of CPF members will be eligible. This means about 340,000 more members.”

 

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