Ministry of Manpower (MOM) has just announced that the minimum sum that will apply to CPF members who turn 55 between 1 July 2014 and 30 June 2015 will be increased to $155,000 from $148,000. This will be set aside in their Retirement Account using savings from their Special, and then Ordinary Accounts. (press release)
The Minimum Sum for CPF members who turn 55 before 1 July 2014 remains unchanged.
The ministry explains that the increase in the minimum sum is to maintain its real value over time, accounting for inflation.
Along with the change in the minimum sum, from 1 July 2014:
- 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will need to have this amount in his Medisave Account and also meet the CPF Minimum Sum before excess funds can be withdrawn.
- 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.