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
(in 2003 dollars)
(after adjustment for inflation)
|1 July 2003
|1 July 2004
|1 July 2005
|1 July 2006
|1 July 2007
|1 July 2008
|1 July 2009
|1 July 2010
|1 July 2011
|1 July 2012
|1 July 2013
Source: CPF Website
CPF Minimum Sum
The Ministry of Manpower announced in August 2003 that the CPF Minimum Sum (MS) will be raised gradually to reach $120,000 (in 2003 dollars) in 2013. The increase in MS, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement. In line with this policy, from 1 July 2011, the prevailing MS will be revised to $131,000, up from $123,000. Members who can set aside the MS fully in cash can apply to commence their monthly payouts of $1,170 when they reach their draw down age. The new MS will apply to CPF members who turn 55 from 1 July 2011 to 30 June 2012.
Medisave Minimum Sum and Medisave Contribution Ceiling
From 1 July 2011,
a. The Medisave Minimum Sum (MMS) will be raised to $36,000 from $34,500. Members will be able to withdraw their Medisave savings in excess of the MMS at or after age 55.
b. The maximum balance a member may have in his Medisave Account, known as the Medisave Contribution Ceiling (MCC), is fixed at $5,000 above MMS and this would be increased correspondingly to $41,000, from $39,500.
As announced previously, any Medisave contribution in excess of the prevailing MCC will be transferred to the member’s Special Account if he is below age 55 or to his Retirement Account if he is above age 55 and has a MS shortfall.
The revisions to MMS and MCC are to ensure that Singaporeans have sufficient savings to meet their healthcare expenses, and have been adjusted for inflation.
Source: CPF Website
SINGAPORE: There will be changes to the CPF Minimum Sum, the Medisave Minimum Sum and the Medisave contribution ceiling from July 1.
The CPF Board said the new CPF Minimum Sum will be S$106,000, up from S$99,600 currently. CPF Members who set aside this amount will get a monthly payout of S$910 from age 64 for about 20 years.
The new Medisave Minimum Sum will be S$29,500, up from S$28,500.
The Medisave contribution ceiling, which is the maximum balance a CPF member may have in his Medisave account, will be raised from the current S$33,500 to S$34,500.
Any amount in excess of this will be transferred to the Special Account if the member is below 55 years old.
The CPF Board said these revisions are to ensure that Singaporeans have sufficient savings for their retirement and to meet their hospitalisation expenses.
The amounts have also been adjusted for inflation.