Martin Lee @ Sg
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Increase in CPF Limits

The following information from CPF provides details of the latest revisions to various CPF minimum amounts:

From 1 July 2011, the prevailing CPF Minimum Sum (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.

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.

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.

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1 comment
The Watchman says 12 years ago

If CPF members engage insurance salesmen to do their retirement planning I guarantee they NEVER will ever meet the MS let alone retire comfortably. If they do it is luck.
The 40% who met their MS belonged to the high earners who were lucky to have a different formula for CPF contribution because contribution was higher.
To succeed with the current formula will depend who you engage to plan your retirement. Insurance salesmen? sure die. When they peddle you retirement products they are actually planning theirs.

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