With increased life expectancy, we must set aside enough savings to see ourselves through a longer period of retirement. The CPF Minimum Sum Scheme provides members with a monthly income to support a modest standard of living during retirement. (Refer to CPF Minimum Sum Payout Calculator)
Members may participate in CPF LIFE or buy approved life annuities with their Minimum Sum to give them a guaranteed income for life. Alternatively, they may place their savings with approved banks or continue to keep it with the CPF Board. The Minimum Sum left with the CPF Board currently earns 4% interest per annum. The interest rate is revised every yearly.
Upon reaching 55, you will be able to withdraw a portion of your CPF savings based on your available CPF balances. Setting aside the Minimum Sum when you reach 55 ensures that you have some regular income from the current Draw-Down Age to live on in your retirement.
The Minimum Sum was set at $80,000 in 2003 and will be raised gradually until it reaches $120,000 (in 2003 dollars) in 2013. These amounts will be adjusted yearly for inflation. If you are unable to set aside your full Minimum Sum in cash, your property, bought with your CPF savings, will be automatically pledged for up to half of your Minimum Sum. You will receive a monthly income from your Draw-Down Age until your Minimum Sum is exhausted. You may wish to start your monthly payouts later. It benefits you as your payouts will last longer.
| 55th birthday on or after | Minimum Sum (in 2003 dollars) |
Minimum Sum (after adjustment for inflation) |
| 1 July 2003 | $80,000 | $80,000 |
| 1 July 2004 | $84,000 | $84,500 |
| 1 July 2005 | $88,000 |
$90,000
|
| 1 July 2006 | $92,000 |
$94,600
|
| 1 July 2007 | $96,000 |
$99,600
|
| 1 July 2008 | $100,000 | $106,000 |
| 1 July 2009 | $104,000 | $117,000 |
| 1 July 2010 | $108,000 |
$123,000
|
| 1 July 2011 | $112,000 |
$131,000
|
| 1 July 2012 | $116,000 |
$139,000
|
| 1 July 2013 | $120,000 |
} announced
|
Source: CPF Website
Every year increase about $10,000