The Ministry of Manpower announced in August 2003 that the MS will be raised gradually to reach $120,000 (in 2003 dollars) in 2013.
The increase in MS, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement. In line with this policy, from 1 July 2010, the prevailing CPF Minimum Sum (MS) will be revised to $123,000, up from $117,000.
Members who can set aside the full MS will receive about $1,100 per month when they reach their draw down age1. The new MS will apply to CPF members who turn 55 from 1 July 2010 to 30 June 2011.
Medisave Minimum Sum and Medisave Contribution Ceiling
From 1 July 2010,
a. The Medisave Minimum Sum (MMS) will be raised to $34,500 from $32,000. Members will be able to withdraw their Medisave savings in excess of the MMS at or after 55 years old.
b. 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 $39,500, from $37,000.
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 hospitalisation expenses, and have been adjusted for inflation.
1The draw down age for members who turn 55 from 1 July 2010 to 30 June 2011 is 65 years old.
Celebrating 55! Seminar 2010
The CPF Board turns 55 on 1 July 2010. In conjunction with this special occasion, the Board is inviting CPF members reaching 55 to participate in one of three complimentary mega seminars at the Suntec City on 26 and 27 June 2010.
At each seminar, members will find out what happens to their CPF savings when they reach 55, and learn about the new CPF LIFE scheme. A guest speaker from MoneySENSE will share useful financial planning tips on how to invest in one’s golden years.
Said Mr Soh Chin Heng, Deputy Chief Executive (Services) of the CPF Board who will be one of the speakers at the seminar: “This is the largest series of seminars that the Board has ever organised. We are encouraged by the strong response shown so far, and we urge other CPF members reaching 55 to sign up as well. Come, join more than 4,000 members and celebrate with us! ”
The first session to be held on 26 June, where the Minister for Manpower, Mr Gan Kim Yong, will be the Guest of Honour, is already fully booked. Members who are interested in registering for the two remaining seminars on 27 June can sign up online via the CPF website, AXS or SMS. More details are available on the CPF website.