New Year Money Checklist: 5 Essential CPF, Tax, Mortgage and Insurance Steps

New year, new goals — and yes, that includes your money. While you’re scribbling down gym plans and maybe one too many travel ideas, take a few minutes to run through your finances. It’s a simple habit that pays off: reviewing CPF balances, tax reliefs, mortgage plans, nominations and insurance can save you time, cash and headaches later on. Here are five practical money to-dos to add to your annual New Year checklist.

1. Check your CPF accounts for the interest credited on 1 January

Your CPF interest is calculated every month and then credited on 1 January each year — so this is literally the perfect time to log in and see how much you earned. Don’t sleep on compound interest: the interest you earn adds to your balance and earns interest itself over time, which can really boost your savings.

2. Plan and maximise your income tax relief

Tax reliefs are one of the easiest ways to reduce your tax bill — so take a minute to check what you’re eligible for this year. A few things to remember:

• Cash top-ups to your own SA or RA can qualify for tax relief of up to S$8,000 per calendar year.
• You can also claim up to S$8,000 per year for cash top-ups made to the CPF accounts of your spouse, parents, parents-in-law, grandparents, grandparents-in-law and siblings — subject to conditions. For spouse or sibling top-ups, they must either have an annual income below S$8,000 in the previous year or be a person with disabilities.

If boosting retirement savings and getting tax relief at the same time sounds good (it is), consider planning a top-up before the year-end or early in the new year depending on your cash flow and goals.

Also worth checking out: the Retirement Payout Planner is a handy tool if you’re under 55. It helps you set a retirement payout goal, shows whether your current savings will get you there, and simulates the impact of top-ups or withdrawals.

3. Review your housing mortgage

Housing usually takes a big bite out of your monthly budget, so it pays to review your mortgage at least annually. Start by taking stock of what you’re paying and what options are available:

• If you’re on a bank loan, compare current loan packages — interest rates change and a switch or refinancing could lower your monthly repayments.
• If you have an HDB loan, think about whether a lump-sum partial repayment makes sense. That can either shorten your repayment period or reduce monthly instalments.
• Factor in any planned big expenses (renovation, new car, study fees) before committing to higher repayments so you don’t stretch your budget too thin.

4. Update your CPF nomination

Your CPF nomination tells CPF who should receive your CPF savings when you pass away. If you don’t have a nomination, your CPF savings will be paid to the Public Trustee’s Office for distribution under intestacy laws (or an inheritance certificate for Muslims). That means your family will need to apply to the Public Trustee’s Office to receive the funds — a process that can take months and may involve administrative fees.

Life changes — marriages, births, deaths, divorces, new relationships — so it’s important to review your nomination regularly and after major events. A couple of key points:

• Marriage will automatically revoke any existing CPF nomination, so remember to update it after you tie the knot.
• Divorce, however, does not revoke a CPF nomination. If your wishes change after a divorce, you’ll need to update the nomination yourself.

Make it a New Year habit to double-check your nomination details so your wishes are reflected accurately.

5. Review your insurance coverage

Insurance is one of those things you don’t notice until you really need it. Start the year by taking stock of your protection — death, total permanent disability (TPD) and critical illness — and whether they match your current needs and family situation.

• As a general guide (from the Basic Financial Planning Guide by MAS and local industry bodies): aim for around nine times your annual income for death and TPD coverage.
• For critical illness cover, target about four times your annual income.
• If life events changed your income or dependents, update your coverage amounts and premiums accordingly.

There are tools and comparison planners available to help you review different health and life insurance plans — use them to avoid overlap and to find gaps in coverage.

Making financial planning part of your New Year routine

If you’re unsure where to start, pick one thing from this list and tackle it this week. Log in to your CPF account to check interest and nomination, run the Retirement Payout Planner if you’re under 55, and set a calendar reminder to compare mortgage packages and insurance plans before making changes.

There are also financial guidance platforms that gather planners and resources into one personalised dashboard — useful if you want a single place to monitor progress and simulate “what if” scenarios for top-ups, payouts or loans.

So while you’re planning those fitness or travel goals, give your finances a quick once-over. Little changes now — a timely top-up, a revised nomination, a smarter mortgage choice — can make a big difference down the road. Wishing you and your loved ones a joyful and prosperous new year!