To cater to Singaporeans' rising expectations of what is considered
a basic standard of living in retirement, the CPF Minimum Sum has
been increasing for each group of members turning 55 yearly, to
reach a target of $120,000 (in 2003 dollars) by 2015. In order to
maintain its real value over time, the Minimum Sum increases to
account for inflation.
In view of this, the Minimum Sum that will apply to CPF members who
turn 55 between 1 July 2014 and 30 June 2015 is $155,000. This will
be set aside in their Retirement Account using savings from their
Special, and then Ordinary Accounts. The Minimum Sum for CPF
members who turn 55 before 1 July 2014 remains unchanged.
The Minimum Sum provides CPF members with monthly payouts from the
Draw-Down Age (DDA) . Setting aside more retirement savings means
higher payouts when members retire. To illustrate, under the CPF
LIFE Standard Plan, setting aside the full Minimum Sum of $155,000
at age 55 provides a lifelong payout of about $1,200/month, while
$75,000 will provide about $620/month.
Medisave Minimum Sum and Medisave Contribution Ceiling to better
cater for Singaporeans' long-term healthcare needs
The Medisave Minimum Sum is the amount a CPF member needs to set
aside in his Medisave Account for his own and his dependants'
healthcare expenses, as well as MediShield and ElderShield premiums
during old age.
With Singaporeans living longer and the availability of better
quality of medical treatment, Singaporeans will need to save more
in their Medisave Accounts to help pay for their healthcare
expenses. In addition, as Medisave is opened up to more uses,
regular Medisave Minimum Sum adjustments are necessary to help
Singaporeans better prepare for their long-term healthcare
needs.
From 1 July 2014:
a) The Medisave Minimum Sum will be raised to $43,500 from $40,500.
A member will need to have this amount in his Medisave Account and
also meet the CPF Minimum Sum before excess funds can be
withdrawn.
b) The Medisave Contribution Ceiling will be increased
correspondingly to $48,500, from $45,500. This is the maximum
balance a member can have in his Medisave Account.
Any Medisave contribution in excess of the current Contribution
Ceiling will be transferred to the member's Special Account, if he
is below age 55, or to his Retirement Account, if he is above age
55 and has a CPF Minimum Sum shortfall.
Public enquiries
For more information, please visit www.cpf.gov.sg or call the CPF
Call Centre at 1800-227-1188.
asiaone
u forgot to take into account inflation, price will not stay
constant, the bus fare will rise under bus contracting model,
london bus fares have been going up BUT they have concessions for a
wide range of pple
