Progression of my Mom's CPF account

Following up on my previous post on 'Helping your parents maximize their CPF account', I had gotten permission from my mom and have decided to share how my Mom's CPF account grows over the year as it was being faithfully topped up and earned interests throughout the years.

Her account started with about $3400 in her RA and $3200 in her OA and was only earning about $370 in interest. This was at the end of 2016.

After transferring all her OA to RA and topping up $7000 to her RA for tax relief, her RA reached about $14,000 and is getting close to $680 in interest in 2017.

 

 With a further $7000 top up, her RA grows to $22,000 and is earning about $1200 in interest in 2018.

 

2019 was the year where on top of the $7000 top up for tax relief, I started to transfer my OA to her RA to quickly hit $60,000 for the 5% and 6% interest in RA. her RA grows to $50,000 and is earning about $2300 in 2019.

This year, 2020, her Retirement account had already surpassed $60,000 and is going to earn an estimated amount of more than $3000 interest at the end of this year.

I have to say that this journey was not an easy one. Since the top up and transfer is a one-way street, there are plenty of considerations and calculations before committing to the $7000 cash top up and subsequently OA to RA transfer. However, looking back, I have to say that it feels great to see how her Retirement Account had grown throughout the years and how much "Ah Gong" had contributed and will be contributing to part of it.

She is turning 70 soon. This amount of money in her RA will be slowly paid out as part of Retirement Sum Scheme to supplement part of her monthly allowance making all these effort worthwhile. 

Happy CPFing!