Breakdown of Savings, Withdrawals and Closing Balances of CDA Accounts by Household Income Decile Groups for Children Born between 2014 and 2017
Ministry of Social and Family DevelopmentSpeakers
Summary
This question concerns the breakdown of Child Development Account (CDA) savings and withdrawals by household income decile for children born between 2014 and 2017. Minister for Social and Family Development Masagos Zulkifli B M M clarified that accounts close at age 12, noting that 85% of withdrawals since 2016 were for education and 10% for healthcare. For the 2008 to 2012 birth cohorts, the average private savings was $10,200, with average withdrawals of $12,500 and average closing balances of $3,000. The Minister stated that data by household income decile is unavailable as the Ministry does not collect parents' income data for the Baby Bonus scheme. These figures reflect the government's dollar-for-dollar matching policy and the utilization of funds for approved expenses like childcare and medical fees.
Transcript
28 Ms Mariam Jaafar asked the Minister for Social and Family Development in respect of children born between 2014 and 2017 whose Child Development Accounts (CDAs) have been closed upon reaching the age of seven, what is the breakdown of withdrawals from their CDA accounts for different uses, broken down by household income decile groups.
29 Ms Mariam Jaafar asked the Minister for Social and Family Development in respect of children born between 2014 and 2017 whose Child Development Accounts (CDAs) have been closed upon reaching the age of seven, what is the (i) average cumulative amount of private savings excluding Government contributions (ii) total withdrawals and (iii) closing balances in these CDA accounts broken down by household income decile groups.
Mr Masagos Zulkifli B M M: The Child Development Account (CDA) is a special savings account for eligible children, where the Government provides dollar-for-dollar matching to deposits made by the parents to the CDA, up to a cap. For birth cohorts from 2006 onwards, the CDA is closed at the end of the year that the child turns 12 years old.
Based on available data, from 2016 to 2024, over 85% of the CDA withdrawals made were used for educational expenses, such as childcare centre and kindergarten fees. About 10% were made at healthcare institutions for medical expenses, such as payment for medical fees and medication at clinics and hospitals. The remaining 5% were used for other CDA approved expenses.
For the past five birth cohorts of 2008 to 2012, who have turned 12 years old and had their CDA closed, the (i) average cumulative amount of private savings excluding Government contributions was $10,200, (ii) the average total withdrawals was $12,500 and (iii) the average closing balance in these CDA accounts was $3,000.
Data broken down by household income decile groups is not available as the Ministry of Social and Family Development does not mandate the collection of parents' income data for the Baby Bonus scheme.