CPF and your parents — what you need to understand

CPF and Your Parents

CPF (Central Provident Fund) is Singapore's mandatory savings scheme, and it plays a central role in eldercare financing. Here is what adult children need to understand.

MediSave

Your parent's MediSave account can pay for: - Hospital stays at Class B2/C wards - Approved outpatient treatments - MediShield Life premiums - CareShield Life premiums

You can also top up your parent's MediSave using your own CPF or cash to help fund their healthcare.

CPF Retirement Account and payouts

At age 65, CPF savings are moved into the Retirement Account (RA), which provides monthly payouts under CPF Life. These payouts are for your parent's own use — they cannot be redirected to pay for care without their consent.

Nomination and inheritance

CPF savings are not covered by a will. They are distributed according to a CPF nomination form. If your parent has not made a nomination, the savings go to the Public Trustee's Office for distribution under intestacy rules. Encourage your parent to update their CPF nomination.

MediShield Life

MediShield Life is a mandatory basic health insurance for all Singapore Citizens and PRs. It covers large hospitalisation bills at subsidised wards. Premiums are paid from MediSave and increase with age.

Topping up your parent's CPF

You can top up your parent's Special or Retirement Account to give them a higher monthly payout at retirement. This attracts tax relief for you of up to SGD 8,000 per year.