Dear readers, CPF monthly salary ceiling has been increased from $6,300 to $6,800 with effect from 1 January 2024.
The monthly ceiling will be increased to $7,400 w.e.f 1 Jan 2025 and to $8,000 w.e.f 1 Jan 2026.
Were you affected with the ceiling increase to $6,800 currently?
I was affected. And I only recalled that the CPF monthly salary of $6,800 has commenced, when I looked at my payslip for this month (January 2024): my take-home pay has reduced.
In this current time of high cost, when I am focusing on saving more to offset the higher cost of living right now, a lower take-home pay, will at first be unwelcoming.
However, I also do not mind the higher contribution rate to my own CPF as growing my CPF monies for retirement and future needs is also a key goal of mine.
Many may not like the fact that the CPF monies are not that liquid, as use of the CPF monies are only for certain circumstances only. However, our CPF monies are really part of our overall savings right here in Singapore.
And hence, I think this is precisely why all of us should make our CPF monies work and have a strategy, long-term plan of how we should treat or grow our CPF monies.
Yes, there are strategies for CPF savings like 1M65 or even 4M65; these to me are higher hanging fruits one can aspire to. Importantly, one should have a strategy for using one’s CPF monies. For example, in the aspect of housing, should one use CPF as part of mortgage payments or use purely cash? Using CPF monies can help reduce amount of cash for monthly mortgages but accrued CPF interests will kick in, as long as CPF monies are used for housing.
Rather than treating CPF monies as something we contribute to, and will use in events like buying a house, I encourage all to have a more active view and plan for our CPF monies.
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