More Singaporeans have been voluntarily putting money into their Central Provident Fund (CPF) accounts in 2020 so far via cash top-ups.

Those who did include a growing number of first-timers and young adults.

The CPF Board said in a news release on Oct. 21 that more than 198,000 top-ups were made under the Retirement Sum Topping-Up scheme between January and September 2020.

This was an increase of 34 per cent from the same period in 2019.

The top-ups amounted to S$1.81 billion, representing a jump of 23 per cent from the same period last year, which saw close to 148,000 top-ups totalling S$1.47 billion.

The top-ups to the retirement funds come amid poor economic and labour conditions due to the Covid-19 pandemic.

First-time top-ups

A third of those who made top-ups in the first three quarters were first-timers, CPF Board said.

A growing number of first-timers are below 35 years old.

This new development, CPF board said, signals that “younger adults appreciate the value of growing their retirement savings early".

“Comparing the first three quarters of this year to the same period in 2019, the increase in number of first-time toppers below 35 years old was over 70 per cent,” CPF Board added.

No reason was given as to what prompted this spike, or if this was in response to publicity campaigns by CPF Board previously urging people to add money to their accounts and the accounts of loved ones.

It is also not clear if the top-ups are in response to the worsened economic conditions and potential unfavourable outlook moving forward.

Top-ups under the Retirement Sum Topping-Up scheme increase members' monthly payouts during their retirement.

The top-ups now go into the Special or Retirement accounts.

Withdrawals also fell

Coinciding with the increase in top-ups was the fall in withdrawals from members aged 55 and above.

“The total amount withdrawn has reduced by close to 20 per cent in the first three quarters this year as compared to the same period last year,” CPF said.

Individuals who make cash top-ups are eligible for tax relief of up to S$7,000 per calendar year if they do so for themselves.

Those who also do so for their parents, parents-in-law, grandparents, grandparents-in-law, spouse and siblings are eligible for additional tax relief of up to S$7,000 per calendar year.

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