The Central Provident Fund (CPF) and Ministry of Manpower today (Tuesday) announced adjustments to the CPF Minimum Sum, Medisave Minimum Sum and Medisave Contribution Ceiling effective from July 1.
CPF members who turn 55 years of age between July 1 and June 30 next year will need to set aside a Minimum Sum (MS) of S$148,000 in their Retirement Account (RA).
The MS, which was S$139,000 for last year, has been adjusted over the years to account for inflation, longer life expectancies and Singaporeans’ rising expectations of their quality of life postretirement, the CPF and manpower ministry said.
It is targeted to reach S$120,000 in 2015. The S$120,000 target in 2003 dollars is effectively S$120,000, adjusted for inflation between 2003 and the time the target is met, the announcement noted.
Also from July 1, the Medisave Minimum Sum (MMS) will be raised to S$40,500 from S$38,500. Members will be able to withdraw their Medisave savings in excess of the MMS at or after age 55.
The MMS is the amount that a person turning 55 needs to set aside in his old age for his own or his dependants’ healthcare expenses and basic MediShield and ElderShield premiums.
Regular MMS adjustments are necessary to help Singaporeans meet their long-term healthcare needs.
Finally, the maximum balance a member may have in his Medisave Account, known as the Medisave Contribution Ceiling (MCC), is set at S$5,000 above MMS and this would be increased correspondingly to S$45,500, up from S$43,500.
Any Medisave contribution in excess of the current MCC will be transferred to the member’s Special Account if he is below age 55 or to his RA if he is above age 55 and has a MS shortfall.
Source: mycpf.cpf.gov.sg