5 Reasons NOT to Top Up Your CPF

Many people feel that their CPF balance is insufficient which is why a top-up feature is made available. CPF top-up is favored mainly because of its benefits which are tax relief and how we are able to top up not only our own account, but also our loved ones.

In our previous article, we have talked about how to do CPF top-up and why you should do it. Now, we are going to give insight on the opposite: why you should NOT top-up CPF.

By now, you might be confused and start to wonder whether you should or should not top-up your CPF. Before we start explaining into the details, please note that everyone has different financial conditions and each one requires different treatment. That’s why talking to a financial consultant before creating a financial plan is highly recommended.

One fact for your consideration is that once you have topped up CPF, it cannot be undone. Meanwhile, there might be some conditions that could be done with your money if they are not put into CPF.

Take a look at the short infographic below.


cpf top upAfter reading the points above, you might still feel not sure about your CPF top-up. It is true that there is a maximum limit for CPF top-up, but not everyone has the luxury to still have a lot of money after putting their money in CPF. As mentioned before, you have to make sure that you can still be able to pay your loans, education fee, and mortgage especially if you top-up from OA to SA.

Some may agree, some may disagree. Again, we should look back to one’s financial condition, and create a thorough plan.

If you are still unsure how to calculate your whole financial planning, and need help to decide whether to top-up or not to top-up CPF, you can contact TheFinlens. We are an experienced financial consulting website who have handled thousands of clients and have successfully helped them in CPF problems. We believe that every financial planning should be personalized, and that’s how we help our clients.

TheFinlens can also give you some suggestions on how to invest and utilize your money if you don’t top-up CPF. Leave your contact details at the comment section below, or contact us here.

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