Source :
http://www.todayonline.com/singapore/cpf-minimum-sum-rise-s155k-july
Quote --- SINGAPORE — The CPF minimum sum will be raised to
S$155,000 for those who turn 55 between July 1 this year and June
30 next year, the CPF Board and the Ministry of Manpower (MOM)
announced in a statement today (May 8).
This is S$7,000 more than last year’s minimum sum of S$148,000.
“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,” said the CPF Board and
MOM.
From July 1, the Medisave Minimum Sum will also be raised to
S$43,500 from S$40,500, while the Medisave Contribution Ceiling
will be increased correspondingly to S$48,500, from S$45,500.
Unquote--- Info taken from Today online credits:
http://www.todayonline.com/
The increase in CPF is for the good of people. Most people do
not save enough for old age and retirement. So CPF was started as
compulsory savings in 1955 (? - not sure). At that time, the
retirement age was 55 because people on average only lived to 65
years old.
That was why they set CPF withdrawal age to 55. But now, we live
much longer - 84 on average. We cannot retire at 55 now. Retirement
age must go up and so should the CPF withdrawal age.
This is very unpopular because people are used to withdrawing at
55 and retiring. Howe Yung Choong wanted to raise the retirement
age slowly as our life expectancy increases. But that was so
unpopular that it was shelved.
Now the situation is becoming critical. Our life expectancy is
now 84. So there is no choice but to have a minimum sum after 55.
This is in line with the orignial aim of CPF - compulsory
savings.
