FROM July 1, the CPF Minimum Sum (MS) will be $131,000, up from $123,000 previously, the Central Provident Fund announced in a statement on Tuesday.
The new MS will apply to CPF members who turn 55 from July 1 2011 to Jun 30 2012, those who can set aside the MS fully in cash can apply to commence monthly payouts of $1,170 when they reach their draw down age.
The Medisave Minimum Sum (MMS) will also be raised to $36,000, up from $34,500, whereby members will be able to withdraw their Medisave savings in excess of the MMS at or after age 55.
The maximum balance a member may have in his Medisave Account, also known as the Medisave Contribution Ceiling (MCC), is fixed at $5,000 above the MMS and this would be increased to $41,000, up from $39,500.
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 CPF Board said the increase in CPF minimum sum, MMS and MCC, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement and be able to meet their healthcare expenses.
