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Why Prime Up my CPF Medisave Account?


That is going to be quick weblog in reply to a reader’s query. 

It’s a query I get requested considerably typically. 

Sharing the reply as a weblog might be a good suggestion as it might give me a weblog to level to in future.




So, the reader needs to know why Prime Up my Medisave Account (MA) when the cash can’t be withdrawn? 

The reader might be referring to the Primary Healthcare Sum (BHS) which needs to be maintained within the MA as soon as we flip 65. 

In any other case, after all, the BHS could be drawn upon for particular functions. 

For me, the target of the MA is to have funds for medical bills in case of onerous instances. 

To be sincere, I hope I do not ever should do a withdrawal. 

If I have to draw upon the cash in my MA, it signifies that I’m very sick and experiencing monetary hardship.




Anyway, the following factor I’m going to say is one thing I’ve blogged about earlier than. 

Having a maxed out MA additionally signifies that I get free medical insurance coverage.

Wish to know the way? 

See: 

For the reason that reader’s focus appears to be on CPF funds withdrawal at age 55, it must be attention-grabbing to notice that any extra curiosity earnings generated by our MA will stream into our Particular Account (SA) or into our Odd Account (OA) if our SA has hit the Full Retirement Sum (FRS.) 

For me, it flows into my OA. 

See:


 




For the reason that MA has the identical rate of interest of 4% because the SA, this mechanism makes it enticing as an extra earnings generator since cash within the OA and SA could be withdrawn as soon as we’ve put aside the FRS in our Retirement Account (RA) at age 55. 

Some readers may also have an interest on this weblog: 

If we are able to afford to take action, I imagine that maxing out our MA is a good suggestion.

Max it out and let compound curiosity do its magic.

As common, that is simply me speaking to myself, after all. 

Lately revealed: 



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