CPF Minimum Sum to be raised to $139,000 to account for ‘longer’ life expectancy
Posted by temasektimes on May 30, 2012
The CPF Minimum Sum will be raised again to account for inflation, longer life expectancies and Singaporean’s rising expectations of their quality of life after retirement, announced the CPF Board and the Ministry of Manpower (MOM) in unison on Wednesday.
CPF members who turn 55 years old between 1 July 2012 and 30 June 2013 now have to set aside a Minimum Sum (MS) of S$139,000, $8,000 more than last year whether they like it or not.
The Medisave Minimum Sum (MMS) has also been increased from S$36,000 to S$38,500 to ‘help’ Singaporeans plan for their long-term healthcare needs.
Members will be able to withdraw their Medisave savings in excess of the MMS at or after age 55.
The CPF Board pays a measly interest rate of 2.5% to savings kept in Ordinary accounts and 4% in the Special and Medisave accounts in contrast to Malaysia’s Employment Provident Fund which pays a higher interest rate of between five to seven percent.
Unlike the Malaysians, Singaporeans are NOT allowed to withdraw their CPF savings in full when they reach 55 years old of age and will be paid a monthly allowance instead for the rest of their lives.