Detailing my yearly CPF top-up and thoughts.
This is my 8th year of top-up.
1. Top-up $2.5k to Medisave via Paynow
Did a $2,500 top up to my Medisave, bringing it to 2023 MA ceiling of $68,500.
Done the same for my husband as well.
2. On hold - To top up $5.5k to SA or no?
Contrary to the past where I top-up at the start of the year, I have decided to hold off the top-up.
A) Running out of cash
Firstly, I'm running out of cash. I'm berating myself for degrading to the past where I look forward to my monthly income for cashflow. So I can build up my $100k capital in savings account again, given the current high interest environment.
B) Hitting FRS soon = no tax relief
Secondly, I'm concerned about reaching FRS too soon.
The FRS this year is $198,800. I'm now sitting on ~$157k SA which means $41,800 away from reaching this ceiling.
I know some people encouraged maxing this out ASAP. But, as I've crossed 6 digits annual income, maxing FRS soon meant lower tax relief in subsequent years.
In fact, with the $5.5k top up this year, I'm expected to hit FRS in 2024. What should I do?