SINGAPORE: From 1 July this year, the CPF minimum sum, Medisave minimum sum and Medisave contribution ceiling will be raised.
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 2012 was S$139,000.
(CW8888: This is an increase of 6.5% and higher than inflation rate)
The minimum sum has been adjusted over the years to account for inflation, longer life expectancies and Singaporeans' rising expectations of their quality of life.
The Medisave minimum sum will also be raised from S$38,500, to S$40,500 from 1 July 2013.
The Medisave minimum sum is the amount that a person turning 55 needs to set aside in his old age for his own or his dependants' healthcare expenses and basic MediShield and ElderShield premiums.
Members will be able to withdraw their Medisave savings in excess of the minimum sum at or after the age of 55.
The maximum balance a member may have in his Medisave Account, known as the Medisave contribution ceiling, is set at S$5,000 above the Medisave minimum sum, and this would be increased correspondingly from S$43,500 to S$45,500.
Any Medisave contribution in excess of the current Medisave contribution ceiling 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.
The CPF Board said regular Medisave minimum sum adjustments are necessary to help Singaporeans meet their long-term healthcare needs.