Did you know almost 400,000 Singaporeans have at least S$500,000 in their CPF account as of 31 December 2020? Here are some interesting facts and figures from the CPF Board’s 2020 Annual Report.
Our interest piques whenever CPF news and and all things related to CPF are announced. The CPF Board’s 2020 Annual Report has just been published on their website, and we’ve combed through the data to pick out the top 10 figures all Singaporeans should know about. You’re welcome.
#1 S$462.1 billion — Total CPF members’ balances
Even with the COVID-19 pandemic in the backdrop, the total amount of CPF members’ balances grew by a healthy 8.7% to a new high of S$462.1 billion. What’s even more impressive? Close to 400,000 Singaporeans have at least S$500,000 in their CPF account as of 31 December 2020 – that translates into one-tenth of the population who have successfully saved beyond the Enhanced Retirement Sum.
While the CPF balance accrued includes amounts withdrawn under the Education, Housing and Investment schemes, it is still mindblowing to learn that amongst the almost 400,000 Singaporeans, 100 of them are no older than 35!
Want some great tips to apply to your own CPF savings journey? Here are four wise retirement tips from MoneyOwl’s CEO. Be sure to also check out how you can use this ingenious retirement ‘cheat code’.
#2 S$22.5 billion — CPF savings invested by CPF members
A total of S$22.5 billion of CPF savings were invested by CPF members, according to the 2020 report. Breaking down this figure, S$17 billion of Ordinary Account (OA) savings were invested by 960,000 CPF members while S$5.5 billion of Special Account (SA) savings were invested by 283,000 CPF members.
Keen to get started? The CPF Investment Scheme (CPFIS) is designed for CPF members who have the knowledge, time and interest to invest a fraction of their OA and SA savings in a bid to seek potentially higher returns on their savings. CPF members can pick from a wide range of financial instruments, subject to investable limits.
And if you didn’t already know, you can utilise Endowus to invest your CPF, SRS and cash at low fees!
#3 S$17.3 billion — Amount withdrawn for home purchases
CPF members withdrew a total of S$17.3 billion from their OA savings to pay for
their home purchase in 2020. From this total sum, S$10.5 billion was withdrawn by 741,000 members to pay for their HDB flats while another S$6.8 billion was withdrawn by 231,000 members to pay for their private properties and executive condominiums.
Aspire to buy your own home soon? Find out more about home loans and how much you need to buy your first home in Singapore. If you’re considering getting a home loan from the bank, definitely read up on the comparison between SIBOR Rate and Fixed Deposit Home Rate (FHR) loans so you can make a more informed decision.
#4 S$16.8 billion — Total interest credited to CPF members’ accounts
Despite the COVID-19 pandemic, members’ CPF balances hit a new high of $462.1 billion, with a record S$16.8 billion paid to CPF members in interest in 2020. This includes the S$1.7 billion in extra interest the Government pays on the first S$60,000 of a member’s combined balances, capped at S$20,000 for their OA.
You can read more about the pros and cons of keeping your savings in your Special Account.
#5 S$3 billion — CPF top-ups to Special or Retirement Accounts
A total of S$3 billion in CPF top-ups were made to CPF members’ Special or Retirement Accounts in 2020, up from S$2 billion in 2018 and S$2.1 billion in 2019. This S$3 billion consisted of cash top-ups as well as CPF transfers.
Why should you consider topping up your CPF accounts when you’re young and in your prime? To get richer with the magic of compound interest, of course! In addition, CPF savings earn risk-free interest.
That’s not all, CPF members can enjoy up to S$14,000 in income tax relief when they do cash top-ups for themselves and their loved ones.
Help yourself to better financial shape in the new norm, with SingSaver’s all-new Ultimate Savings Guide! Got your free copy yet?
#6 S$2.3 billion — CPF LIFE payouts till date
In a bid to help bolster Singaporeans’ retirement income, the Government launched the CPF Lifelong Income for Elderly (LIFE) Scheme back in 2009. For those who don’t already know, CPF LIFE offers CPF members with monthly payouts starting from age 65. There’s no end date — CPF members will receive their monthly payouts for as long as they live. At the end of 2020, over 76,000 CPF members have received S$2.3 billion in monthly payouts.
Want to boost your retirement savings while you’re still earning an income? Check out our guide to the Supplementary Retirement Scheme (SRS) where you’ll find tips to maximise it. Consider getting an annuity plan for your retirement, too.
#7 $1.05 billion — MediShield Life claims
More than 701,000 MediShield Life claims amounting to $1.05 billion were approved in 2020, up from the S$929 million in 2018 and S$1.03 billion in 2019.
Thanks to this national health insurance plan, CPF members enjoy health insurance protection against hefty hospital bills for life and selected costly outpatient treatments.
Back in March 2021, the MediShield Life scheme was further enhanced to provide better coverage for CPF members, including updated claim limits. While MediShield Life premiums are now higher, support and subsidies are available to help CPF members cushion the impact of premium adjustments amidst the COVID-19 pandemic.
Still confused about MediShield Life and MediSave? Read this handy two-minute explainer on their differences.
#8 S$83.8 million — Home Protection Scheme claims
Did you know mortgage insurance safeguards your home and family against the unexpected? It is basically insurance for your home loan. Should anything unfortunate happen to the covered homeowner, the insurance payout will settle the remaining home loan amount owed. Your dependents will not have to worry about any outstanding home loan; they will continue to have a roof over their head.
While it is an oft-overlooked insurance for homeowners, particularly those who aren’t covered under the Home Protection Scheme (HPS), this coverage is undeniably important.
Over the course of 2020, 920 HPS claims amounting to S$83.8 million were approved. From this figure, 586 were attributed to death cases while 334 were attributed to terminal illness and total permanent disability cases.
#9 2 million — Number of active CPF members
An active CPF member is defined as an individual who has at least one one contribution paid for the current month or any of the preceding three months. At the end of 2020, the number of active CPF members stood at 2 million.
If you were to include the self-employed and everyone who has a positive balance in any of their CPF accounts, the total number of CPF members stood at 4.1 million.
#10 54,000 — Number of CPF nominations executed online
Have you ever wondered what would happen to your CPF money after you die? For sure, dying is still a taboo topic in fairly conservative Singapore. However, end-of-life planning is important regardless of how bleak it may sound.
Even if you’ve prepared a will, you still need to make a CPF nomination to decide who will be the ones inheriting your CPF savings, the percentage they will receive and how your CPF savings will be distributed.
To make the nomination process simpler and more efficient for CPF members, the CPF Board streamlined this process last year.
CPF members can now make their nominations entirely online, anytime, anywhere. In fact, 54,000 nominations were carried out online in 2020. Keen to start nominating? You may access the Online Nomination Service (ONS) here.
Up your personal finance game
It’s never too early to start planning for retirement, really. As it stands, most people regret not saving for retirement earlier.
To stay updated and connected with CPF news, schemes and developments, you may want to follow CPF Board on their new platform channels like Telegram and podcasts available on Spotify, Apple Podcasts, Google Podcasts and more. Those who need support can reach them via the CPF Board’s hotline or online platforms.
Not to forget, follow SingSaver for splendid deals and offers along with handy personal finance tips to make your personal finance journey more fulfilling than it already is.
You can check out the full CPF annual report here.
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Read these next:
Beginner’s Guide To CPF Retirement Sums And How To Get There (2021)
Mortgage Insurance, Unsecured And Business Loan Insurance: Things You Need To Know
Guide To Supplementary Retirement Scheme (SRS) And Tips To Maximise It
CPF Investment Scheme (CPFIS): Guide To Investing With Your CPF
CPF Nominations: What Happens To Your CPF Money After You Die?
By Denise Bay
While Denise has a thing for travel, K-dramas, 0% sugar bbt (with boba!), Japanese cuisine and flat white, her curious nature means all sorts of random tabs are open on her phone 24/7. She doesn’t like to pay full price for anything, too.