How much can you put in your Medisave Account?

It has been ages since i’ve written anything. Ever since we came out of lock down the option to work from home no longer existed for Mr Kua Simi.

It didn’t help that the nature of my work does not really promote the option to work from home. In addition i’ve taken on more responsibility at work, which has taken much of my time off from writing and researching.

It got me thinking about the “value of your time” which i’ll probably write about soon. If you are working at a job which you have plans to leave for, at what point in time does it make sense to make the jump to your new job? How do you make a calculated decision? These questions have been coming up alot recently during my interactions with my two younger brothers who are in the midst of a job change.

Ok! Back to the question about MediSave. Did you know you can top up cash to your MediSafe? What are the benefits of doing so?

1) Tax write offs for the amount you topped up your MediSave
2) Earn a 4% year on year on year compounded interest

If 4% compounded year on year does not sound like a big deal to you, let me add one more benefit. It is RISK FREE! Are you sold yet? You should be.

Ok now, how do you maximise this golden “investment” opportunity to grow your money? For a while now, I was always under the impression that the maximum you can have in your MediSafe is $60k, and that any cash topped up to your MediSave above $60k would flowed to your SA or RA depending on your age.

However just a couple of days ago during a conversation with one of my friends it came to my attention that the maximum MediSafe account has been revised to $63k! See this link here for reference.

So if you had the maximum of $60k in your MediSafe, NOW (January 2021) is the best time to top of your MediSafe! Put that $3k in there RIGHT NOW to maximise the interest earned and amount which can be used as a tax write off.

Every month you wait, your “benefits” will be dwindling as your $60k starts to earn interest and reduces your ability to top up the maximum of $3k to reap the benefits extended to you by the government. Here is a table to show you the max MediSave over the years.

Am I making sense? I think i’m blabbering now.. Enjoy the rest of your day.