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CPF minimum sum raised to S$148,000 for members turning 55 from July 1

CPF building on Robinsons Road. (Yahoo! file photo)

[UPDATE: 9 May, 1030AM; correcting age details]

From July 1 this year, CPF members who turn 55 between 1 July 2013 and 30 June 2014 will need to set aside a minimum sum of S$148,000 in their Retirement Account.

The minimum sum for those who turned 55 last year was S$139,000.

Each successive cohort of those who turn 55 will have the sum been adjusted over the years to account for inflation, longer life expectancies and Singaporeans’ rising expectations of their quality of life post-retirement.

In a statement on Tuesday, the CPF board announced the Medisave minimum sum for those turning 55 and above will also be raised from S$38,500 to S$40,500. This is the amount that a person needs to set aside in his old age for his own or his dependants’ healthcare expenses and basic MediShield and ElderShield premiums.

The maximum balance a member may have in his Medisave Account is set at $5,000 above MMS and this will be increased correspondingly to $45,500, from $43, 500.

Any Medisave contribution in excess of the cap 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 minimum sum shortfall.