Every December, I look forward to the bonus from CPF (aka interest) which will be credited on 1st Jan each year.
While some companies may be freezing year-end bonus this year due to recession, CPF interest will continue to be paid out regardless of whether it had been a good or bad year.
How to receive $10K bonus from CPF annually?
If you have hit Full Retirement Sum (FRS) and Basic Healthcare Sum (BHS) in SA and MA respectively (in 2020), your ‘Bonus’ (interest) will be about $10k ($181k & $60k @4%). This is a conservative estimate as it excludes the additional 1% on 1st $60K and interest from OA.
Just to provide some perspective, this is a decent bonus amount which works out to about $800 per month which can be close to/ more than the monthly HDB mortgage. Of course, SA interest can’t be used for HDB loan payment. Nonetheless, it is still our funds whichever bucket it goes to.
Use the calculator below to estimate your annual CPF interest. Read this article if you are interested in boosting your ‘Bonus’ amount.
Could you update app to update MA limit to 63,000?
Thanks for pointing it out. I have updated to 63K max MA limit.