CPF minimum sum to be raised to $139,000

The CPF minimum sum will be revised upwards to $139,000 from the previous $131,000 from July 1 said the Ministry of Manpower (MOM) on Wednesday.

The new minimum sum will apply to CPF members who turn 55 from July 1, 2012 and June 30, 2013.

The Medisave minimum sum will also be raised to $38,500 from the previous amount of $36,000.

Members will be able to withdraw their Medisave savings in excess of the Medisave minimum sum at or after age 55.

The maximum balance a member can have in the Medisave account is fixed at $5,000 above the Medisave minimum sum.

Corresponding to the increase in the Medisave minimum sum, this ceiling would also be increased to $43,500 from $41,000.

Any Medisave contribution in excess of the prevailing ceiling will be transferred to the Special Account if the member is below 55 years old or his Retirement Account if he is above 55 and has a shortfall in his minimum sum.

The CPF board said that the revisions, which have been adjusted for inflation, are to ensure that Singaporeans have sufficient savings to meet their healthcare expenses.

CPF interest rate for Ordinary Account stays at 2.5%

SINGAPORE: The Central Provident Fund (CPF) Board said members will continue to receive an interest rate of 2.5 per cent on their Ordinary Account savings from 1 October 2011 to 31 December 2011.

This is despite the computed CPF interest rate, derived from the major local banks' interest rates from 1 May 2011 to 31 July 2011, working out to 0.36 per cent per annum.

Members will also continue to receive an extra 1 per cent interest on the first $60,000 of their combined balances, with up to $20,000 from the Ordinary Account.

The extra interest from the Ordinary Account will go into the member's Special or Retirement Account to enhance retirement savings.

Please check if it is as accordance to your retirement plan through this article.