CPF Minimum Sum to be raised to $139,000: More Good Years!

[sense]

CPF Minimum Sum to be raised to $139,000
Those turning 55 from July to next June must leave $139k in accounts
Published on May 31, 2012

Central Provident Fund (CPF) members turning 55 between July 1 this year and June 30 next year will have to leave at least $139,000 in their accounts for monthly payouts in their later years.

This is $8,000 more than last year's Minimum Sum of $131,000.

The Minimum Sum Scheme was introduced to help ensure that CPF members, who can withdraw their CPF savings at 55, will have enough to meet their basic retirement after they turn 65.

So CPF members have to leave some money in their accounts beyond the age of 55. In 2003, the Goverment set this Minimum Sum at $120,000 and aimed to reach it in 10 years.

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_805300.html

More Good Years for you, my dearest voters!

 

[sense]

CPF Minimum Sum should reflect 'true' inflation
Published on Jun 8, 2012

THE report ('CPF Minimum Sum to be raised'; May 31) stated that the Government has decided to raise the Central Provident Fund (CPF) Minimum Sum from $131,000 to $139,000 from July, instead of $143,000.

The reduction is aimed at cushioning CPF members from the impact of the acute, inflation-driven spike, spreading the balance of $4,000 until the new target date of 2015.

When Trade and Industry Minister Lim Hng Kiang addressed the concerns over rising inflation in Parliament ('When big policies impact the little man in the street'; May 15), he cited big-ticket items like housing rentals and car prices as being responsible for the bulk of inflation. As most Singaporeans own their homes, the issue of rents is irrelevant to citizens, he explained. As for private cars, only a small part of the population buy cars, so the majority of people are also not affected by the high inflation.

If these are the reasons for rising inflation, why is the Government applying the full annual inflation rate when adjusting for the increase in the Minimum Sum?

Shouldn't the Government moderate the figure downwards - say, to two-thirds the actual inflation rate - to recognise that some major contributors to inflation do not affect most CPF members?

Young Pak Nang

 

[Leongsam]

It's such a small sum I don't know what all the fuss is about.