CPF Minimum Sum increased to $155,000 The Ministry of Manpower (MOM) and Central Provident Fund (CPF) Board yesterday announced that the CPF Minimum Sum, the amount set aside for retirement, has been increased to $155,000 to account for inflation and Singaporeans rising expectations of the basic standard of living in retirement. This new sum will apply to CPF members who turn 55 between July 1, 2014, and June 30, 2015. It will be set aside in their Retirement Account using savings from their Special, and then Ordinary Accounts. The Minimum Sum was first set at $80,000 in 2003, and was to be raised gradually until it reaches $120,000 (in 2003 dollars) by 2015. In order to maintain its real value over time, it is adjusted yearly for inflation. The Minimum Sum for members who turn 55 before July 1, 2014, remains unchanged. Meanwhile, the Medisave Minimum Sum, the amount set aside for ones own and dependants healthcare expenses as well as MediShield and ElderShield premiums, will be raised to $43,500 from $40,500 from July 1. The Medisave contribution ceiling will also be increased correspondingly to $48,500, from $45,500. Singaporeans need to save more in order to cover their healthcare expenses, as they are living longer; better-quality medical treatment has become more accessible as well, said MOM and the CPF Board. Source: Business Times – 9 May 2014
Posted on: Fri, 09 May 2014 12:51:06 +0000
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