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CPF Voluntary Contribution



End of 2014, I was considering to make voluntary contribution to Medisave account. Apart from the reason that this is tax deductible which I can save a bit in my following year income tax payment, the 5% interest per annum is another factor contributing to my thought. 

Well, mentioning about CPF is one of the sensitive topic for Singaporean to talk about since this often draws a lot of comments from the reader. I often see there are so many comments below the yahoo news of CPF, HDB etc topic related. 

When I check on my CPF Statement every year, I found that the interest earned for my Medisave account is quite a significant amount which I think it can be considered as a safe deposit even though hard to withdraw out from the account is the drawback and the keep changing CPF rules making it even harder to plan for the strategy. 

Personally, I feel that buying a health insurance is important to prepare for unforeseen circumstances. I was very happy to pay for MediShield years back when the premium is pretty low. I feel that the low premium rate is pretty worthwhile at that point of time. I have no doubt to go for it. Unfortunately, the premium keep increasing these few years. Thus, by contributing to Medisave account should be an good approach to pay for the premium by the earned interest, looking at the keep increasing premium rate trend due to price hike and my aging.


~~Be happy !! :)

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