SINGAPORE - Those who turn 55 from July 1 next year must set aside $161,000 in their Central Provident Fund accounts, up from the $155,000 Minimum Sum for this year's cohort. But after that, there will be no more major increases in the Minimum Sum, said Prime Minister Lee Hsien Loong in his National Day Rally speech on Sunday night.
Get the full story from The Straits Times.
Mr Lee said the old Minimum Sum was much too low, and it took 10 years to raise it to its current $155,000.
But next year's instalment - the final one - will see the Minimum Sum raised to $161,000 for people turning 55 from Jul 1, 2015.
CPF members who pledge their property need only set aside half of this in cash, or $80,500.
"Beyond that, I do not see a need for any more major increases in the Minimum Sum," said Mr Lee. But he added it will still need to be adjusted from time to time as incomes go up and basic spending needs increase, and as Singaporeans live longer and need to provide more for a longer retirement.
A new Silver Support scheme will be introduced for low-income Singaporeans. It will give basic payout each year, from 65. #ndrsg— Lee Hsien Loong (@leehsienloong) August 17, 2014
PM: Panel will study how CPF can be more flexible, to allow option to take out part of CPF savings in lump sum, subject to limits. #ndrsg— Lee Hsien Loong (@leehsienloong) August 17, 2014
About 10-20 per cent of Singaporeans may not accumulate enough CPF during their working lives. #ndrsg— The Straits Times (@STcom) August 17, 2014
CPF members 65 and older will be allowed to take out part of their CPF savings in a lump sum, but amount cannot be excessive. #ndrsg— The Straits Times (@STcom) August 17, 2014
CPF scheme – better support for low-income elderly & more flexible use of Min Sum. All welcome moves.But devil may be in the details. #ndrsg— Zuraidah Ibrahim (@zuibrahim) August 17, 2014
PM: Minimum Sum will be $161k for pple turning 55 from 1/7/15. $80.5k with property pledge. #ndrsg— Lee Hsien Loong (@leehsienloong) August 17, 2014
CPF Miniumum Sum to be raised one more time next year to $161,000. There should be no need for major increases after, says PM Lee. #ndrsg— The Straits Times (@STcom) August 17, 2014
Advisory panel to study how to build more flexibility into CPF system, such as giving people more flexibility in investing. #ndrsg— The Straits Times (@STcom) August 17, 2014
PM announces panel to advise on other CPF improvements. Glad that Govt is moving on this front #ndrsg— Zuraidah Ibrahim (@zuibrahim) August 17, 2014