CPF Minimum Sum to be raised to S$139,000
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SINGAPORE: CPF members who turn 55 between 1 July 2012 and 30 June 2013 have to set aside a Minimum Sum (MS) of S$139,000, higher than the S131,000 for 2011.
The CPF Board and Ministry of Manpower (MOM) said on Wednesday that the MS has been adjusted over the years to account for inflation, longer life expectancies and Singaporean's rising expectations of their quality of life after retirement.
They said that since 2004, the MS has been increased by S$4,000 each year to reach S$120,000 in 2013, as recommended by the Economic Review Committee in 2003.
The actual increases in MS are also adjusted for inflation each year.
The S$120,000 target in 2003 dollars is effectively S$120,000, adjusted for inflation between 2003 and the time the target is met.
Doing so preserves the real value of the target.
Based on 2011 inflation and incorporating the annual S$4,000 (in 2003 dollars) adjustment, the increase in MS due this year would have been S$12,000, which is relatively large compared with previous years.
In response to concerns over large increases in MS in any given year, the CPF Board and MOM said they'll spread out the remaining MS increases needed to reach the S$120,000 target over a longer period of four years.
This means they'll reach the target in 2015, instead of 2013.
With this change, the 2012 MS will be S$139,000, an increase of 6 per cent, or S$8,000, over 2011.
Without the change, the 2012 MS would have been S$143,000, or a 9-per cent increase, over 2011.
Changes will also be made for contributions to the Medisave Minimum Sum (MMS) to help Singaporeans plan for their long-term healthcare needs.
From 1 July (2012), the MMS will be raised to S$38,500, from S$36,000 - an increase of 7 per cent.
The MMS is the amount that a person who turns 55 needs to set aside for hospitalisation expenses in subsidised Class B2 and C wards, subsidised outpatient treatment for selected chronic conditions and basic MediShield and ElderShield premiums.
Members will be able to withdraw their Medisave savings in excess of the MMS at or after age 55.
Another change - also from July - is in the Medisave Contribution Ceiling (MCC).
It's the maximum balance a member may have in his Medisave Account.
This is set at S$5,000 above MMS and would be increased correspondingly to S$43,500, from S$41,000.
Any Medisave contribution in excess of the prevailing MCC will be transferred to the Special Account if the member is below age 55, or to his Retirement Account if he is above age 55 and has a MS shortfall.
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The Director of CPF.... should go for a....
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is that why nobody cares to control inflation?
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everytime they raise the min sum... makes me wonder issit they have not enuff money for cpf payouts izzit.................
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the way they put it is like we owe them money. take out for investment and put back must add interest. now must add in inflation. or is that really our money? frankly, i am sick of the cpf scheme.
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Originally posted by ^Acid^ aka s|aO^eH~:
everytime they raise the min sum… makes me wonder issit they have not enuff money for cpf payouts izzit…..............
It is to secure your future.
CPF is not for retirement > so say some minister..
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Again?
Immediately after election
Perfect timing
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Originally posted by eagle:
Again?
CPF minimum sum increase
MRT fare increase
Bus fare increase
GST increase
Conservancy charges increase
Electricity bill increases
Water bill increases
CPF minimum age increase
Taxi fare increase
ERP increase
COE increase
HDB prices increases
GDP increase
Minister's pay increase
Loop back to start.
They really have enough products,
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Originally posted by Nelstar:
It is to secure your future.
CPF is not for retirement > so say some minister..
coz they are loaded they dont know what cpf means to the average singaporean. -
Originally posted by dragg:
is that why nobody cares to control inflation?
They did. Thus the saying "Wages must increase to fight rising cost of living."
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what will be the effects of this increase?
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Originally posted by dangerboi:
what will be the effects of this increase?
More money for Ho Ching to gamble away on questionable overseas investments.
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cheap foreign less than 1k talents also increase
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It's all for our own good lar.
We don't want people taking out their cpf money and spending iit on frivolous things like holiday tours and good restaurant food when they retire right?
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Originally posted by charlize:
It's all for our own good lar.
We don't want people taking out their cpf money and spending iit on frivolous things like holiday tours and good restaurant food when they retire right?
They might live a longer life and not have enough if they spend on frivolous things.
Keeping CPF inside helps generate interests which grows in capital ensuring that CPF monies will outlive Singaporean.
Not sure how that works for Singaporean to spend it.
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I read other forums stated that cpf life payout amount has decreased.
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Originally posted by charlize:
I read other forums stated that cpf life payout amount has decreased.
It has to decrease so that your CPF can last.
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By the time I retire, it should be around $200,000 to $400,000.
PAP government's high inflationary growth for Singapore.
Other countries get real GDP growth whereas Singapore gets high inflationary growth.
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Originally posted by βÎτά:
By the time I retire, it should be around $200,000 to $400,000.
PAP government's high inflationary growth for Singapore.
Other countries get real GDP growth whereas Singapore gets high inflationary growth.
By that time, HDB flats cost 2 million, COE 500K, GST 50% and retirement age 110.
The future looks damn bright.
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Originally posted by Nelstar:
They did. Thus the saying "Wages must increase to fight rising cost of living."
to increase wages we need to increase jobs. to increase jobs we need to increase FTs? vicious cycle!!!! -
Originally posted by charlize:
By that time, HDB flats cost 2 million, COE 500K, GST 50% and retirement age 110.
The future looks damn bright.
So the moral of the story is, if you want to be happy having a 2 million dollar HDB, COE 500k, GST 50% and retirement age at 110, you vote in PAP the next election.
At least you die happy knowing you are a millionaire with a HDB flat.
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Originally posted by βÎτά:
So the moral of the story is, if you want to be happy having a 2 million dollar HDB, COE 500k, GST 50% and retirement age at 110, you vote in PAP the next election.
At least you die happy knowing you are a millionaire with a HDB flat.
I think I can easily become millionaire in Indonesia.
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Originally posted by Nelstar:
I think I can easily become millionaire in Indonesia.
You want to go there but do they want you?
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if $1,000 p/m can buy a flat n $8 for a by-pass then why do we need to keep this much $?
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Originally posted by charlize:
By that time, HDB flats cost 2 million, COE 500K, GST 50% and retirement age 110.
The future looks damn bright.
Time to buy NOW. lol
IF you got the moolah