SINGAPORE — Central Provident Fund (CPF) members who turn 55 between July 1 this year and June 30 next year will have to set aside more retirement savings in their accounts.
The Minimum Sum will be raised to S$155,000, up from S$148,000, from July 1, the CPF Board and Ministry of Manpower said in a joint statement yesterday.
To maintain its real value over time, the Minimum Sum, which provides CPF members with monthly payouts once they reach their draw-down age, has been periodically increased to take inflation into account.
“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 S$120,000 (in 2003 dollars) by 2015,” the statement said.
Under the CPF LIFE Standard Plan, setting aside S$155,000 at age 55 provides a lifelong payout of about S$1,200 per month, it added.
The Minimum Sum will be set aside in members’ Retirement Account using savings from their Special and then Ordinary Accounts.
From July 1, the Medisave Minimum Sum will also be raised to S$43,500 from S$40,500.
A person will need to have this amount in his Medisave Account and also meet the CPF Minimum Sum before excess funds can be withdrawn.
The Medisave Contribution Ceiling, the maximum balance a member can have in his Medisave Account, will be increased to S$48,500 from S$45,500.
“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,” the statement said.