For most of us, the Central Provident Fund (CPF) scheme is an essential component of our financial planning for our golden years.

Over the years, enhancements have been made to the scheme to enable us to boost our retirement savings as well as improve the flexibility of withdrawals and the timing of payouts.

Efforts have also been made to encourage CPF members to make top-ups – with cash and/or CPF savings – to their CPF accounts and those of their loved ones to boost their retirement savings.

Top-ups provide a means to enjoy some tax relief while enabling these CPF members or their loved ones to benefit from the compounding effect of the CPF’s interest rates so as to grow their nest eggs.

It is heartening to note that this practice is on an uptrend.

In terms of the number of top-ups – excluding self top-ups from OA to SA – they have risen 15 per cent from 2014 and have nearly doubled from the 2012 figure.

Self top-ups from OA to SA are also trending north with 26,300 top-ups worth $289.1 million last year compared with 23,400 top-ups ($257.7 million) in 2014 and 17,100 top-ups ($156 million) in 2012.

RETIREMENT SUM TOPPING-UP SCHEME

This scheme allows you to build your retirement savings by topping up your own CPF accounts or those of anyone including your loved ones. You can opt to top up your own or your loved ones’ Special Accounts (below age 55) or Retirement Accounts (RA) for those aged 55 and above.

Top up your own or loved ones’ account

You can make a cash top-up to anyone.

In total, you may enjoy tax relief of up to $14,000 per calendar year if you make top-ups for:• •Your parents, parents-in-law, grandparents, grandparents- in-law, spouse or siblings, if their income does not exceed $4,000 in the year preceding the year of top-up or if they are handicapped. • •Yourself (or your employer makes a cash top-up for you).

However, you can enjoy tax relief for cash top-ups to your own or your recipient’s RA only up to the current Full Retirement Sum (FRS) which is $161,000 for those who turned 55 from July 1 last year. Cash top-ups beyond the current FRS will not be eligible for tax relief.

Your employer will receive an equal amount of tax deduction.

Enhanced Retirement Sum (ERS)

On Jan 1, several enhancements kicked in, including an additional retirement sum option – ERS of $241,500 – aimed at boosting our nest egg so we can enjoy more retirement income in our golden years.

Recipients aged 55 and above can receive cash top-ups or CPF transfers to their RA up to the current ERS, which is three times the Basic Retirement Sum (BRS) of $80,500.

Mr Johnny Chua, 57, was among those who topped up their RA to get higher payouts in the future. In January, CPF members made 1,700 top-ups worth $80 million to their RAs to boost their retirement savings beyond the FRS.

During that month, Mr Chua made a one-time cash top-up of about $90,000 beyond his FRS for his cohort to make up the amount to the ERS. “The lower level of payouts would not be enough based on my needs. So it is great that the CPF Board introduced the ERS which allows me to receive higher payouts later,” he said. Mr Chua plans to supplement his retirement income with rent from his investment property.

Previously, the maximum amount members could set aside was the FRS, allowing estimated monthly payouts of $1,220 to $1,320 from the age of 65.

The current ERS of $241,500 translates to estimated monthly payouts of $1,770 to $1,920 from 65.

However, do note that tax relief will be given for cash top-ups to your own or recipient’s RA only up to the current FRS. This means that cash top-ups beyond your own or recipient’s current FRS will not be eligible for tax relief.

And depending on your financial situation, you may wish to defer your payouts from your eligibility age up to 70 years old and enjoy 6 per cent to 7 per cent more in monthly payouts for each year deferred.

Top up your spouse’s account using CPF or cash

This will benefit non-working spouses who have made sacrifices to stop work for their families, and have low CPF balances.

Before the changes on Jan 1, only CPF savings above your FRS could be transferred to your spouse.

There is now a lower threshold so members can transfer their net CPF money after setting aside the BRS in their own CPF accounts to top up their spouse’s CPF account up to the ERS.

Both will benefit from the extra interest that will be paid in the respective accounts and there is peace of mind as the spouse will have her or his own source of retirement payouts.

For cash top-ups, you can top up any amount up to the ERS.

According to the CPF Board, there were more than 400 transfers of CPF savings to spouses in January, around 21/2 times that of the corresponding month last year. About 20 of the spousal transfers were made possible only after the scheme was changed.

For housewife Margaret Tan, 59, having her RA topped up every year by her hubby Richard Tan, 53, gives her peace of mind. The couple have two sons, aged 26 and 24, and she had left the workforce after her first child was born.

Mr Tan, in the police force, started the annual cash top-ups of $7,000 for his wife two years ago on their 25th wedding anniversary. He also tops up her RA on an ad hoc basis when he has surplus cash.

Mrs Tan has about $80,000 in her RA and her hubby wants her CPF to eventually reach an amount of about $161,000 when she is 65.

“It’s my anniversary present every year now. He used to give me roses and chocolates. Richard said we should plan ahead…We must think of our old age and have our own money. Then the two of us can go for holidays, sit on the beach and sip coconut juice while listening to music,” said Mrs Tan.

She can look forward to receiving $808 to $857 monthly from the CPF when she hits 65 and starts receiving the payouts.

TOPPING UP EARLY CPF

members can earn more interest by topping up earlier in the year. So don’t procrastinate and wait till the end of the year to do a top-up.

From Jan 1, you stand to earn more interest on your CPF savings, depending on your age.

Members over age 55 are getting an additional 1 per cent interest on the first $30,000 of their CPF savings, making a significant 6 per cent interest a year.

This is on top of the 1 per cent extra interest on the first $60,000 in CPF combined balances – of which $20,000 comes from your Ordinary Account – which everyone enjoys. CPF savings in the SA and RA currently earn guaranteed interest rates of 4 per cent a year.

GIRO TOP-UP

are encouraged to make regular monthly and/or yearly top-ups to your own or loved ones’ CPF accounts through Giro, which can be monthly and/or yearly arrangements.

This makes it convenient for members to do top-ups on a regular basis to benefit from the Retirement Sum Topping-Up Scheme, without the hassle of having to complete forms or make cheque payments.

INVESTING CPF MONIES

Mr Justin Chua, senior vice-president of investment products at DBS Bank, advised that while CPF monies can be invested in certain instruments to make them work harder, the individual needs to consider the risk-return trade-off.

This is because investing in higher-risk investments requires a longer timeframe to exhibit long-term growth and these returns are not guaranteed. In addition, the CPF member may potentially suffer capital losses in adverse market situations such as during the global financial crisis from 2008 to 2009.

Subject to specific limits, CPF monies can be invested in financial instruments like shares, unit trusts, government and statutory board bonds, endowment and investment-linked insurance policies, exchange-traded funds and gold.

“The individual will need to consider his risk tolerance, investment time horizon and current financial situation before deciding on an appropriate investment tool. Diversification into various asset classes and markets would be an appropriate strategy to potentially assist the individual in achieving an overall targeted return,” said Mr Chua.

Some financial experts advise that for CPF accounts that earn at least a risk-free interest rate of 4 per cent a year, it is better to leave them alone.

Still, CPF members who want higher returns can also look forward to a low-cost, simple-to-understand alternative investment scheme for their retirement savings, which should be announced in the first half of this year.

This article was first published on March 13, 2016.
Get a copy of The Straits Times or go to straitstimes.com for more stories.

Social workers have noticed an uptick in the number of cases of abuse by family members of vulnerable adults, such as those who are intellectually or physically disabled, or who suffer from dementia or who are mentally ill.

The training of more people in the community to spot cases accounts for the increase in the number of cases reported, they said.

Two of the three centres that specialise in tackling family violence have seen the number of such cases almost doubling in the past five years.

Care Corner Project StART, which started in 2011 and specialises in abuse cases involving vulnerable persons, saw 11 such cases in 2012.

Last year, it handled about 20.

Safe Centre, which focuses on abuse cases involving the elderly, saw 26 such cases last year, almost double the 14 cases in 2011.

Ms Kristine Lam, team leader of Project StART, said the organisation has been training hospital staff, grassroots leaders and people working with the disabled and the elderly, among others, to detect abuse.

With greater awareness, more cases are surfacing.

“These people (due to their conditions) may not know they are abused and can’t really cry out for help. So it really depends on the community to report the abuse,” she said.

Abuse ranges from financial exploitation to sexual assault, but mostly involves physical violence and neglect, social workers said.

An example cited was that of an intellectually disabled man in his 50s who also has schizophrenia.

His son, a student in his 20s, used cigarettes to burn him, bamboo poles to hit him, and tied his hands when he did not do as he was told.

This went on for at least 10 years before hospital staff spotted scores of cuts and bruises on the man.

Project StART social workers applied for a personal protection order for the man against his son and the violence has since stopped.

Violence aside, social workers say that neglecting to provide sufficient care to vulnerable adults who are unable to look after themselves is another concern.

Over time, neglect, including not being given medication regularly or taken to the doctor promptly, could lead to health complications and even death.

Said social worker Soh Siew Fong at Pave: “Neglect can kill.”

While there are caregivers who neglect their charges as they are overwhelmed by the task, social workers are more concerned about those with ulterior motives who intentionally neglect those under their care.

Said Ms Lam: “They are after the person’s money. So the sooner the person dies, the quicker they get the money.”

Some cases appear to be a means of taking revenge, she added, recalling the case of an elderly women whose husband, in his 80s, had dementia. The wife would dictate when he could be bathed and have his diapers changed. He was also not given his medication regularly and suffered a seizure – which led to complications and his death.

Ms Lam said: “We found out from their daughter that the wife wanted to punish him as they had a bad marriage. This is intentional neglect.”

Ms Odelia Chan, a social worker at TRANS Safe Centre, said caregivers who have ulterior motives usually reject all offers of help.

In one case, a woman lived with her intellectually disabled sister, purportedly to use the regular financial aid her sister gets from the Government. And she abused the sister by biting her when instructions were not followed. The abuse was detected during a hospital visit, when a nurse noticed blood that had seeped through the victim’s T-shirt. Hospital staff alerted TRANS Safe Centre and the woman was eventually placed in a shelter.

Social workers said these vulnerable adults are the most defenceless victims as some have no inkling that they are being abused, while others tolerate the caregivers’ actions.

WHERE TO GET HELP

If you are a victim of family violence or know someone who is, you can call these charities for help.

Pave

Tel: 6555-0390

TRANS Safe Centre

Tel: 6449-9088

Care Corner Project StART

Tel: 6476-1482

This article was first published on March 13, 2016.
Get a copy of The Straits Times or go to straitstimes.com for more stories.

To help those who find it hard to walk long distances, the Woodlands Temporary Bus Interchange is offering free rides on electric buggies – becoming the first bus interchange here to provide such rides.

After all, it is one of the longest bus interchanges here, at 0.5km.

There will be two electric buggies, which can each seat four people including a driver, to ferry commuters around.

The rides were among the features unveiled at the temporary bus facility’s first day of operations yesterday.

It will be in service until 2019, while the Woodlands Regional Interchange undergoes upgrading and an underpass is built to link the upgraded interchange with the stations of two MRT lines.

It is a temporary bus interchange, it also boasts various features, including those that shorten bus waiting times or improve accessibility for those with disabilities.

Coordinating Minister for Infrastructure and Minister for Transport Khaw Boon Wan, who is also an MP for Sembawang GRC, toured the bus interchange yesterday with grassroots advisers from Sembawang and Marsiling-Yew Tee GRCs.

Mr Tan Kian Heong, vice-president of SMRT Buses, which runs the temporary bus interchange, said efforts have been taken to ensure a smooth transition for commuters from the permanent interchange to the temporary one.

“Although the relocation is temporary, we aim to provide our commuters and staff with the service standards found in a fully operational, permanent bus interchange,” he added.

Buses from the Woodlands Temporary Bus Interchange make about 400,000 passenger trips a day.

The bus interchange has display panels and sensors to help bus drivers find unoccupied parking bays and available alighting berths more easily. This will minimise the time spent looking for these spaces, saving time for the drivers.

To reduce passengers’ waiting time, cameras have also been installed so that interchange staff can monitor queues and ease the crowds by deploying more buses or those with more room, such as double-decker buses.

There are also features that will benefit people with disabilities.

These include pedestrian ramps that link the interchange to Woodlands MRT station, making it easier for people using wheelchairs to get around.

Handrails also have Braille guidance to help passengers with visual disabilities locate the waiting areas.

Mr Vikram Nair, MP for Sembawang GRC, said the features were introduced in response to feedback from residents.

“I’m optimistic about it,” he said. “The old Woodlands interchange was very stuffy but this new one is more open, and there is more space for commuters to queue for buses.”

Mr Tea Chap Chek, a 70-year-old Woodlands resident, said he would give the electric buggy a try.

“Such features are good. It is quite far to walk from one end of the interchange to another,” said the retiree.

FEATURES

– FREE BUGGY SERVICE

Two four-seater electric buggies to operate daily

from 7am to 11pm to help commuters who require assistance to get to bus berths at the extreme ends of the interchange

– BRAILLE GUIDANCE

Braille guides on handrails to help the visually disabled

– RAMPS

Wheelchair ramps to link the interchange to the MRT station

– PRIORITY QUEUES

Priority queues and reserved seating

– BUS GUIDANCE SYSTEM

System which includes sensors and display panels to provide information on available alighting berths and parking bays

– INTERACTIVE HELP

Interactive panel for passengers to check bus routes, updates on community events or even look for a job on a jobs portal

– STAFF LOUNGE

Air-conditioned staff lounge for bus captains and staff

– CAMERAS

Closed-circuit television cameras to help staff monitor bus queues

This article was first published on March 13, 2016.
Get a copy of The Straits Times or go to straitstimes.com for more stories.