The CPF Minimum Sum has been increasing for each group of members turning 55 yearly, to reach a target of $120,000 (in 2003 dollars) by 2015. In order to maintain its real value over time, the Minimum Sum increases to account for inflation.
CPF members who turn 55 between 1 July 2014 and 30 June 2015 will be subjected to an increased Minimum Sum (MS) of $155,000. This will be set aside in their Retirement Account using savings from their Special, and then Ordinary Accounts. This is an increase of $7,000 from the previous MS of $148,000.
The Medisave Minimum Sum is the amount a CPF member needs to set aside in his Medisave Account for his own and his dependants’ healthcare expenses, as well as MediShield and ElderShield premiums during old age.
From 1 July 2014:
a) The Medisave Minimum Sum will be raised to $43,500 from $40,500. A member will need to have this amount in his Medisave Account and also meet the CPF Minimum Sum before excess funds can be withdrawn.
b) The Medisave Contribution Ceiling will be increased correspondingly to $48,500, from $45,500. This is the maximum balance a member can have in his Medisave Account.
Any Medisave contribution in excess of the current Contribution Ceiling 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 CPF Minimum Sum shortfall. Retirement Account, if he is above age 55 and has a CPF Minimum Sum shortfall.